How you can benefit from purchase protection and extended warranty?

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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, updated on November 25th, 2021       

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Reward credit cards come with a double feature of being able to reward you with points for purchases that you make and other benefits like purchase protection and extended warranty that come in handy without you having to fork out an additional fee. Here is what you need to know when it comes to using such features to protect you..

What is purchase protection?

Purchase protection will be a welcomed feature any reward card owner will be happy they have. This feature which is also known as ‘purchase security insurance’, covers you against loss, theft, or accidental damage for various products that you have purchased using the card. The beauty of having such a feature is that it will protect you for a wide range of purchases that you also made while travelling abroad.

There is a period in which you will be able to be covered for purchases which can go up to 6 months, but anything that falls outside of this period may not be covered. There is also a limitation to what can be covered in terms of the price range. Checking these fine details on your rewards card can help you know if you are still eligible to make a claim.

What is extended warranty protection?

Don’t you wish that you can still be protected beyond the stated product warranty? If you have purchased goods with your rewards credit card you can be covered for an extended warranty insurance. What this basically means is that if an item becomes defective or stops working after the Australian warranty period which can range from 7 days up to a year, you can still be covered for it by your cards extended warranty protection.

Other factors to consider

Some credit card providers will require that you have the items purchased with your reward card registered with them to activate the extended warranty protection cover. You will also be requested to provide the proof of purchases for the products that you want to be covered. Therefore, keeping a physical or electronic copy of your proof of payments in a safe place can come in handy later on.

How to compare extended warranty for the best deal

To make the most of your reward card features such as extended warranty you can consider things such as:

  • The claim process – Check if the claim process will be easy to follow by asking your provider. This will give you an idea of how long it will take.
  • Limitations – Look at the limit on the amount that you can claim within a year to know what you are covered for.
  • Excess fees – There are insurers that will charge you excess for each extended warranty insurance claim.