Cellphones can cost a pretty penny — not just in plans, but in repairs and replacements. In fact, more than 5,000 cellphone screens get cracked per hour according to Omoton.
If you’re one of the many who have experienced the horror of watching your cellphone slip from your fingers, you’ll want to cover your bases in case it’s ever stolen or severely damaged again. (Although we certainly hope there isn’t a next time.)
But you don’t necessarily need to fork over for insurance with your phone carrier. Rather, did you know that some credit cards come with complimentary cellphone insurance? To qualify, you just need to charge your monthly cellphone bill to your credit card. Then, if you ever need to replace or repair your phone, cellphone protection can reimburse you for a great chunk of these costs, saving you potentially hundreds of dollars.
In this guide, we’ll discuss what exactly credit card cellphone protection covers and the five best credit cards on the market that come with this valuable insurance policy.
What is cellphone protection?
Most people aren’t aware that many credit cards come with a library of complimentary protections. For example, it’s pretty standard for many of the top travel cards to be equipped with travel insurance or rental car coverage. And most rewards credit cards come with extended warranty or purchase protection that can act as a safeguard for expensive items you buy with the card.
Read more: 13 hidden credit card perks and benefits you may not know existed
With credit card cellphone protection, rather than purchasing cellphone insurance through your cellular network or retailer, you can get it directly through your card and at no extra charge. (Assuming, of course, that you have a card that offers it.)
Coverage will depend on the card you carry, but most will offer anywhere from $600 to $1,000 per claim, and you’re usually capped at two claims annually. There’s also a deductible you’ll need to pay, usually around $25 to $100 — but that amount pales in comparison when you’re getting reimbursed for hundreds of dollars.
To be eligible, you must charge your monthly cellphone bill to the card that offers this benefit; otherwise, you won’t be eligible to file a claim. And like with any insurance policy, certain exclusions will apply.
What cellphone protection covers
Cellphone protection will provide reimbursement when your device is stolen or damaged, whether that’s a cracked screen, water damage, or other serious harm to the device.
Note that if you’re filing a claim due to theft, you will likely need to file a police claim in order to provide supporting documentation to the benefits manager.
What cellphone protection doesn’t cover
On the flip side, there are exclusions to be wary of. The biggest one? If you lose your phone entirely. Because there’s no paper trail (like a theft report to the police), most issuers will exclude loss as a permissible reason to file a cellphone protection claim.
Your specific cardholder benefits guide will provide more details, but here are some other general no-gos when it comes to credit card cellphone protection:
- Minor cosmetic damage, like scratches or scuffs
- Cellphones that are rented, borrowed, or received as part of a prepaid plan
- Electronic issues related to the software of the device
- Taxes and fees associated with the services provided
Because of these exclusions, some cardholders may opt to purchase a more protective plan that can cover things like loss or minor cosmetic damage. But for many people, complimentary cellphone protection can be adequate.
Finally, time is of the essence when it comes to cellphone protection. You’ll most likely need to file your claim in a given timeframe, usually within 90 days of damage, and even within 48 hours of filing a police claim if your phone is stolen.
Best credit cards for cellphone insurance
If you’re thinking about applying for a credit card with cellphone protection, consider one of these five options:
