Credit Card Purchase Protection Study: 2017’s Best Cards
11:17 PMPosted by: Alina Comoreanu
Credit card purchase protection covers eligible items against damage and theft in the months after you buy them. So if you have the right card and follow the proper protocol, your misfortune could be reversed with a full refund or a repaired/replaced item.
When might credit card purchase protection come in handy? Well, there were 14.6 million cases of property crime in 2015, according to the Bureau of Justice Statistics. And roughly 1.3 million fires resulted in an estimated $14.3 billion in direct property loss, according to National Fire Protection Association. So it’s worth having an extra layer of protection.
But not all credit cards offer purchase protection. And policies vary widely among those that do. So to help you understand what coverage you may already have and whether you need an upgrade, WalletHub compared the 10 largest credit card companies’ purchase protection policies. You can check out our findings below.
Some of the cards listed on this page originate from our partners, but that did not impact our conclusions. Offers are accurate as of Nov 14, 2017, and many are likely to have changed since.
Main FindingsThe best credit cards for purchase-protection benefits are:
| Rank | Cards | WalletHub Score |
|---|---|---|
| 1 | All Citi Cards | 100% |
| 2 | Chase Sapphire Reserve & J.P. Morgan Reserve | 98.5% |
| 3 | Platinum from American Express & Premier Rewards Gold Card From American Express | 96% |
Citi cards provide the best purchase protection coverage.
Capital One is the only major issuer whose purchase protection policy worsened in 2017.
Only 27% of cards provide purchase protection for up to 120 days.
Items stolen from personal vehicles are the most common type of exclusion from purchase-protection coverage (46%).
40% of cards have fully transparent purchase-protection policies, while the majority loses points for not disclosing complete benefit terms.
The Coverage You Can Expect
| Example of a Standard Policy | Best Policy | |
|---|---|---|
| Sign Up | Not required | Not required |
| Coverage | Items stolen or accidentally damaged by: FireSmokeVandalismAccidental discharge of water or steam | Items stolen or accidentally damaged by: FireSmokeVandalismAccidental discharge of water or steam |
| Exclusions | Perishables Consumables Collectibles Certain other purchases (e.g. computer software) | Perishables Consumables Collectibles Certain other purchases (e.g. computer software) |
| Maximum Coverage per Item | $500 per eligible item | $10,000 per eligible item |
| Maximum Coverage per Year | Up to $50,000 per card | Up to $50,000 annually |
| Price Protection Period | 120 days from the date of purchase | 120 days from the date of purchase |
| Cards Offering this Type of Policy | Chase Sapphire Preferred | Citi Prestige |
| Overall Rank | Card Name | Sign Up | Coverage | Purchase Protection Period | Claims | Transparency | Total Score |
|---|---|---|---|---|---|---|---|
| Maximum Points | 10% | 50% | 20% | 10% | 10% | 100% | |
| T - 1 | Citi ThankYou Premier Card | 10.00% | 50.00% | 20.00% | 10.00% | 8.50% | 98.50% |
| T - 1 | Citi Prestige Card | 10.00% | 50.00% | 20.00% | 10.00% | 8.50% | 98.50% |
| T - 1 | Chase Sapphire Reserve | 10.00% | 50.00% | 20.00% | 10.00% | 8.50% | 98.50% |
| T - 1 | J.P. Morgan Reserve | 10.00% | 50.00% | 20.00% | 10.00% | 8.50% | 98.50% |
| T - 5 | Platinum From American Express | 10.00% | 50.00% | 16.00% | 10.00% | 10.00% | 96.00% |
| T - 5 | Gold Card From American Express | 10.00% | 50.00% | 16.00% | 10.00% | 10.00% | 96.00% |
| T - 5 | Premier Rewards Gold Card From American Express | 10.00% | 50.00% | 16.00% | 10.00% | 10.00% | 96.00% |
| T - 8 | Citi ThankYou Preferred Card | 10.00% | 47.00% | 20.00% | 10.00% | 8.50% | 95.50% |
| T - 8 | Citi Double Cash | 10.00% | 47.00% | 20.00% | 10.00% | 8.50% | 95.50% |
| T - 8 | Citi Simplicity | 10.00% | 47.00% | 20.00% | 10.00% | 8.50% | 95.50% |
| T - 8 | Citi Diamond Preferred Card | 10.00% | 47.00% | 20.00% | 10.00% | 8.50% | 95.50% |
| T - 12 | Blue Sky From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Blue Cash Everyday From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Blue Cash Preferred From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Green Card From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | EveryDay From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | EveryDay Preferred From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Blue From American Express | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Wells Fargo Propel | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 12 | Wells Fargo Propel 365 | 10.00% | 47.00% | 16.00% | 10.00% | 10.00% | 93.00% |
| T - 21 | Chase Sapphire Preferred | 10.00% | 44.00% | 20.00% | 10.00% | 8.50% | 92.50% |
| T - 21 | Chase Freedom | 10.00% | 44.00% | 20.00% | 10.00% | 8.50% | 92.50% |
| T - 21 | Chase Slate | 10.00% | 44.00% | 20.00% | 10.00% | 8.50% | 92.50% |
| T - 21 | Chase Freedom Unlimited | 10.00% | 44.00% | 20.00% | 10.00% | 8.50% | 92.50% |
| 25 | U.S. Bank FlexPerks Gold American Express | 10.00% | 41.00% | 16.00% | 10.00% | 10.00% | 87.00% |
| T - 26 | Barclaycard Arrival Plus World Elite MasterCard | 10.00% | 41.00% | 16.00% | 10.00% | 8.50% | 85.50% |
| T - 26 | Barclaycard Rewards | 10.00% | 41.00% | 16.00% | 10.00% | 8.50% | 85.50% |
| T - 26 | Barclaycard CashForward | 10.00% | 41.00% | 16.00% | 10.00% | 8.50% | 85.50% |
| T - 26 | Barclaycard Ring | 10.00% | 41.00% | 16.00% | 10.00% | 8.50% | 85.50% |
| T - 30 | Capital One Venture | 10.00% | 38.00% | 16.00% | 10.00% | 10.00% | 84.00% |
| T - 30 | Capital One VentureOne | 10.00% | 38.00% | 16.00% | 10.00% | 10.00% | 84.00% |
| T - 30 | Capital One Quicksilver | 10.00% | 38.00% | 16.00% | 10.00% | 10.00% | 84.00% |
| T - 30 | Wells Fargo Home Rebate Visa Signature | 10.00% | 38.00% | 16.00% | 10.00% | 10.00% | 84.00% |
| T - 30 | Wells Fargo Visa Signature | 10.00% | 38.00% | 16.00% | 10.00% | 10.00% | 84.00% |
| T - 35 | U.S. Bank FlexPerks Select+ American Express | 10.00% | 41.00% | 16.00% | 10.00% | 3.50% | 80.50% |
| T - 35 | U.S. Bank FlexPerks Travel Rewards American Express | 10.00% | 41.00% | 16.00% | 10.00% | 3.50% | 80.50% |
| T - 35 | U.S. Bank Cash 365 | 10.00% | 41.00% | 16.00% | 10.00% | 3.50% | 80.50% |
| T - 35 | U.S. Bank Cash+ | 10.00% | 38.00% | 16.00% | 10.00% | 6.50% | 80.50% |
| T - 35 | U.S. Bank FlexPerks Travel Rewards Visa Signature | 10.00% | 38.00% | 16.00% | 10.00% | 6.50% | 80.50% |
| T - 35 | U.S. Bank Platinum | 10.00% | 38.00% | 16.00% | 10.00% | 6.50% | 80.50% |
| T - 41 | Bank of America Travel Rewards | 10.00% | 38.00% | 16.00% | 10.00% | 3.50% | 77.50% |
| T - 41 | Bank of America Cash Rewards | 10.00% | 38.00% | 16.00% | 10.00% | 3.50% | 77.50% |
| T - 43 | Discover it | 10.00% | 32.00% | 16.00% | 10.00% | 8.50% | 76.50% |
| T - 43 | Discover it Miles | 10.00% | 32.00% | 16.00% | 10.00% | 8.50% | 76.50% |
The following cards do not feature the purchase protection benefit:
| Bank of America Better Balance RewardsBankAmericard | Capital One PlatinumCapital One QuicksilverOne | All USAA Cards |
| Well Fargo Rewards Card | Wells Fargo Cash Wise Visa Card | Wells Fargo Home Rebate Visa |
For more insight into what retailers get from offering purchase protection and how the availability of such coverage affects consumer spending habits, we turned to a panel of leading experts in the fields of consumer psychology and retail studies. You can check out their bios and responses to the following questions below.
- To what extent are purchase protection plans, which act as insurance against theft or accidental damage, an effective strategy for a retailer?
- How does a purchase protection plan impact consumer habits?
Ravi Dhar George Rogers Clark Professor of Management and Marketing & Director of the Center for Customer Insights at Yale School of Management
Wilfred Amaldoss Thomas A. Finch Jr. Professor in the Fuqua School of Business at Duke University
Roger Beahm Full Professor of Practice in Marketing at the Wake Forest University School of Business
To what extent are purchase protection plans, which act as insurance against theft or accidental damage, an effective strategy for a retailer? Purchase protection plans often make little sense, but they operate psychologically under the principle of "mental accounting." According to mental accounting, when we have a gain or a loss, we think of that gain or less within the account (my new TV was stolen) or (I lost $20 from my wallet). It certainly would hurt less if that same $20 was missing from my bank account (assuming most of us have more money in the bank than in our wallet). Similarly, when buying a new TV or a tablet, any damage to that product is aversive, and adding a few dollars to get that peace of mind seems easy. After all, the insurance for that new TV or tablet is a small percentage price – since it is now attached to my TV account. This makes it easier to spend the money on a purchase protection plan, although economically, it rarely makes sense to purchase them. Wilfred Amaldoss Thomas A. Finch Jr. Professor in the Fuqua School of Business at Duke University 
To what extent are purchase protection plans, which act as insurance against theft or accidental damage, an effective strategy for a retailer? Consumers are typically risk averse, and they want to avoid accidental damage and theft. Because these events do happen, consumers are often willing to pay a risk premium for offers with such protection plans. Not only is offering such services profitable for retailers, it also improves customer satisfaction and store loyalty. Roger Beahm Full Professor of Practice in Marketing at the Wake Forest University School of Business 
To what extent are purchase protection plans, which act as insurance against theft or accidental damage, an effective strategy for a retailer? Like any other insurance we buy, buying purchase protection insurance means buying “peace of mind.” How much “peace of mind” is worth (i.e., how much are you willing to pay for it?) depends on three things: (a) the absolute out-of-pocket price you’re paying for the item you’re buying, (b) the relative cost of the purchase protection insurance when compared to that purchase price (which is really “what will it cost me to replace this if it is stolen or I accidentally damage it?”), and (c) the likelihood – or unlikelihood – you feel it is that the item will be stolen or that you’ll accidentally break it. In this case: The more expensive the item, the more likely you are to consider buying the insurance. The less expensive the purchase protection insurance is relative to the cost of the item, the more likely you are to consider buying it. Ultimately, however, it’s still going to come down to your own self-assessment of the odds of having it stolen or accidentally breaking it. And people know themselves in this area better than anyone. If you have a track record of leaving items in places where someone can take them, or you have a habit of breaking things accidentally, then it’s at least worth considering buying the insurance – but then you have to consider the price-value relationship of that insurance relative to the cost of the item. If you are the kind of person that typically takes good care of your purchases, guards them against theft, and is careful about using them, then you should likely pass on the opportunity to buy the insurance. Remember, retailers offer insurance against theft or accidental breakage as a service to you. But it’s still a source of revenue for them. They know the odds favor them in selling the insurance (versus customers making claims against it). So the best advice here, before buying, is found in the maxim, “know thyself.” How does a purchase protection plan impact consumer habits? Purchase protection plans are more like coupons – for some people they are important, for others they just don’t have the time or inclination. In this case, it’s only that segment of the market that often thinks about taking advantage of special offers and/or uses promotional codes, discounts, etc., that purchase protection plans influence behavior. To paraphrase Mahatma Gandhi, “thoughts become actions… and actions become habits.” If it’s important enough to you to think about, it’ll become a habit. Methodology
The data used in this report is based on public disclosures regarding the price protection policies of the 10 largest issuers of consumer credit cards in the United States. Co-branded, student and business credit cards were not evaluated, nor were cards that cannot be applied for online. In situations where policies were incomplete or unclear, we requested verification, and proceeded to update the report as needed. Information is accurate as of Nov 10, 2016.
Each individual card was scored according to the following criteria:
1. Sign Up – Worth 10% Total
- If there is no sign-up or product registration = 10%
- If there is a one-time sign up requirement = 5%
- If there is an annual sign up requirement = 2%
- If product registration is required for all purchased items = 0%
2. Coverage – Worth 50% TotalA. Coverage & Exclusions – Worth 20%
- For each major category of items excluded from coverage (e.g. jewelry or electronics), we subtracted 6%
- For each minor category of items excluded from coverage, we subtracted 2%
- Issuers are deducted a maximum of 20% points, even if their exclusions add up to more issuers only lose 20% points
B. Maximum Coverage per Item – Worth 15%
- $2,000+ = 15%
- $1,000 to $1,999 = 12%
- $500 to $999 = 9%
- $250 to $499 = 6%
- $100 to $249 = 3%
- Less than $100 = 0%
C. Maximum Coverage per Year – Worth 15%
- $25,000+ = 15%
- $20,000 to $24,999 = 12%
- $15,000 to $19,999 = 9%
- $10,000 to $14,999 = 6%
- $5,000 to $9,999 = 3%
- Less than $5,000 = 0%
3. Purchase Protection Period – Worth 20% Total
- 120+ days = 20%
- 90 days to 119 days = 16%
- 60 days to 89 days = 12%
- 30 days to 59 days = 8%
- Less than 30 days = 0%
4. Claims – Worth 10% Total
- If filing a claim requires only a product receipt, copies of relevant insurance forms and a filed report for the vandalized / stolen item (if applicable) = 10%
- If filing a claim requires a credit card receipt, a product receipt, copies of relevant insurance forms and a filed report for the vandalized / stolen item (if applicable) = 5%
- If filing a claim requires more than a credit card receipt, a product receipt, copies of relevant insurance forms and a filed report for the vandalized / stolen item (if applicable) = 0%
5. Transparency Score – Worth 10%A. How easily can one find the info? – Worth 3%
- Information is prominent on issuer website = 3%
- Information is not prominent on issuer website; or it is prominent, but users need to log in to see the full disclosure = 1.5%
- Information cannot be easily found on website = 0%
B. How easy it is to read the info? – Worth 1%
- Information is presented in normal-size font = 1%
- Information is in small-size font = 0%
C. How complete are the policies provided? – Worth 4%
- Full policy provided = 4%
- A couple of key points missing from policy = 3%
- Part of policy provided = 2%
- Benefits briefly described = 0.5%
- No key details provided = 0%
D. How open and transparent are card issuers about the policies? – Worth 2%
- Transparent about policies = 2%
- Not transparent about policies = 0%
Scores are determined based on our opinion of how each purchase protection policy compares to a theoretical ideal policy. An ideal policy is one based on common sense for which a consumer knows all of the most important information without having to delve into the fine print.
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