Some credit cards offer, at no additional charge, cellphone insurance that could drastically reduce the cost of a phone repair. In most cases, all you have to do is pay your bill with the card. We’ll take a deeper dive into credit card cellphone insurance and help you decide whether it’s worth it.
What Is Credit Card Cellphone Insurance?
Credit card cellphone insurance is a benefit provided by your credit card issuer or credit card network that could save you from paying hundreds of dollars out of pocket for damage or replacement. In most cases, you’ll work through a benefit administrator, not the credit card issuer. When you submit a claim, the insurance policy reimburses you up to a certain amount for eligible costs related to damage or theft of your smartphone. Like other types of insurance, to make a claim you’ll have to meet the proper deadline after the damage or theft, provide proof of the damages, and pay a deductible. There are limitations and exclusions, too.
What Does Credit Card Cellphone Insurance Cover?
Cellphone insurance provided through issuers like Chase and Citi typically covers damaged and stolen phones for the primary phone number and additional lines on the same cellphone plan. Some providers only offer secondary insurance, kicking in only after the primary provider has covered its share of losses. That means you’d make a claim with any other insurance you have first, like insurance from your cellphone service provider, homeowners insurance, or renters insurance. Then, your credit card’s cellphone insurance coverage would kick in to cover the remaining amount up to your claim limit. Not all types of phones and losses are covered by credit card cellphone insurance. For example, common exclusions include:
Lost phonesAccessories other than the standard batteryCellphones stolen from checked baggagePrepaid, rented, or borrowed phonesCosmetic damageTaxes and fees
Credit Card Phone Insurance vs. Other Options
Most cellphone carriers offer phone insurance, and they may even require it if you’re financing a new phone through your carrier. However, if you’re paying for a cellphone in full or you’ve paid off your phone, it’s worth considering other options. You don’t have to pay extra money to your credit card issuer or enroll for cellphone insurance, but you do have to pay your monthly cellphone bill with your credit card. Coverage may be suspended any month you don’t pay your bill with your credit card.
How Do You Make a Claim?
If your credit card issuer provides secondary coverage, you’ll submit the claim to your primary insurance provider first (e.g., insurance from your cellphone provider; or homeowners, renters, automobile, or employers insurance.) If your primary insurance provider has covered its share, or if you have no other insurance, you can start the claims process by calling your benefit administrator at the phone number provided with your credit card agreement. You may have a limited amount of time to file a claim—typically 60 to 90 days after the incident. To submit a claim, you’ll need to provide proof that you paid your cellphone bill with your credit card in the month before the date of damage or theft. The benefit administrator will also want to see proof that the phone you’re submitting a claim for is linked to your cellphone account. If this isn’t printed on your billing statement, you may be able to get it from your cellular service provider. Once you’ve submitted all the documentation necessary to support your claim, it could take up to 10 business days to receive reimbursement, depending on the benefit administrator you’re using. If your phone is stolen, you may have to file a police report within 48 hours, and you’ll need to submit the police report with your claim. For claims involving phone repair, be prepared to submit a repair estimate.
