Purchase Protection
Purchase protection is a built-in insurance benefit included on many Canadian credit cards that covers eligible new purchases against theft or accidental damage for a set period after buying. If your new laptop is stolen a month after purchase or your new camera is accidentally dropped and damaged, purchase protection may reimburse you for the loss or repair — up to the policy limits. The item must have been purchased using the eligible credit card.
The coverage is typically automatic and does not require registration, though you will need to file a claim with the card’s insurance provider (not the card issuer directly) if you need to use it. Keep your receipts and the credit card statement showing the purchase.
Quick Facts
| Detail | Value |
|---|---|
| Coverage period | 90 – 120 days from purchase date |
| Coverage type | Theft and accidental damage |
| Typical per-item limit | $1,000 – $10,000 |
| Typical annual limit | $50,000 |
| Cards commonly including it | Visa Infinite, World Elite Mastercard, Amex premium cards |
| Claim process | Filed with card’s insurance provider (not the bank) |
| Must pay with | The eligible credit card |
Canadian Context
Purchase protection is a standard benefit on most premium Canadian credit cards (Visa Infinite, World Elite Mastercard), and also appears on some no-annual-fee cards at reduced coverage levels. It is governed by the terms of the card’s Certificate of Insurance — a separate document from the cardholder agreement, often available through the insurance provider’s website. In Canada, the benefit is underwritten by third-party insurers (commonly Allianz, Chubb, or RSA), not the bank itself. Common exclusions include motorized vehicles, perishable items, animals, items lost (not stolen or damaged), and items covered by a manufacturer recall. Review the Certificate of Insurance for your specific card for exact exclusions and limits.
Related Glossary Terms
Information on this page is provided for general educational purposes. Insurance benefit terms, coverage limits, and exclusions vary significantly by card — always read your Certificate of Insurance for your specific card.