Credit Cards with Purchase Protection

When you’ve bought something using your card it will be protected against loss, theft or accidental damage.

Credit card Purchase Protection is a feature that many Australian credit card holders now enjoy. It is a complimentary extra on many cards, often accompanied by other “shopper’s insurance” policies such as extended warranty and guaranteed pricing schemes.

If you have purchase protection you can enjoy peace of mind when making purchases with your credit card. However, you need to read and fully understand the terms and conditions so that you know what is included and what is not, and any other attached conditions.

What does purchase protection entail?

Purchase protection offers you 90 days (or occasionally 120 days) of insurance on most new personal products purchased with your credit card. The insurance normally covers you against loss, theft and accidental damage. There are qualifying circumstances and certain goods are exempt from protection.

The provider may either provide a replacement or repair for the product in question, or refund the purchase price.

Are there different types of purchase protection?

The various providers have different terms and conditions for their cards, stating which purchases qualify for cover and under what circumstances the benefits will be provided. Some providers also have specific eligibility criteria that must be met, such as the minimum price paid for the product. Others may include restrictions on purchase location. Read the fine print to fully understand the purchase protection offered by your provider.

Retain proof of purchase

When making purchases with credit cards that are eligible, it is important to keep your receipt. You will need it in most cases to make a claim. This is only one of the documents you may be required to provide to support your claim.

Where to make your claim

Keep in mind that the credit card provider is not itself the insurer, merely offering the complimentary policy in conjunction with a partner insurance company. Therefore, in the case of a claim, you will need to contact the insurer linked to the card directly instead of contacting your credit card provider.

Compare the cover

To compare the purchase protection offered by competing cards, keep the following details in mind:

  • How comprehensive is the cover (time period, exclusions, claim limits &c)?
  • How easy is it to make a claim?
  • Is there a clearly-defined dispute resolution process?

Most gold, platinum and black cards will come with complimentary purchase protection insurance, usually as just one policy in a suite of shopper’s and travel insurance cover. You may even find purchase protection included in some cards with a very low or zero annual fee.

purchase protection
purchase rate
annual fee
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The American Express Essential® Credit Card
Apply by 13 mar 19
5 reviews
Receive a $50 Dining Credit when you apply by 13 March 2019, are approved and meet spend criteria (conditions apply).
$0 p.a. annual fee.
Smartphone Screen Insurance for up to $500 for screen repairs to your Smartphone (conditions apply).
More info
Add to comparison
Yes
14.99% p.a.
ongoing
$0
ongoing
NEW
Citi Rewards Platinum Card Balance Transfer Offer
Apply by 31 mar 19
0% p.a. for 26 months on balance transfers.
One-off 1.5% balance transfer fee applies.
Reduced annual fee of $0 p.a. in the first year ($199 p.a. thereafter).
More info
Add to comparison
Yes
20.99% p.a.
ongoing
$0
1st year
then $199
Citi Simplicity Card
Apply by 31 mar 19
No annual fee.
0% p.a. for 6 months on balance transfers.
Complimentary purchase cover insurance, transit accident insurance, extended warranty insurance and guaranteed pricing scheme.
More info
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Yes
19.99% p.a.
ongoing
$0
ongoing
Get 50,000 points when you apply online, are approved and spend $3,000 in the first 3 months.
Receive a $400 Travel Credit each year towards any flights, hotels and car hire when you book online with this card.
Enjoy up to two entries per year to the American Express Lounge at Sydney or Melbourne Airports.
More info
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Yes
20.74% p.a.
ongoing
$395
ongoing
Woolworths Everyday Platinum Credit Card Shopping Offer
Apply by 30 apr 19
Get a $50 Woolworths eGift Card* (Spend Conditions Apply).
Every month you’ll get 10% off your first shop at Woolworths on selected dates – Saving you up to $50 every month.
$0 annual fee for the first year, saving you $49.
More info
Add to comparison
Yes
19.99% p.a.
ongoing
$0
1st year
then $49
No foreign transaction fees on purchases when travelling or shopping online.
No currency conversion fees.
$0 p.a. annual fee.
More info
Add to comparison
Yes
(optional)
21.99% p.a.
ongoing
$0
ongoing
HSBC Platinum Qantas Credit Card
Apply by 31 mar 19
5 reviews
Earn 1 Qantas Point per $1 spent, up to $2,500 every month. Every $1 spent thereafter will earn 0.5 Qantas Point. (Capped at 7,500 per statement period)
0% p.a. for 12 months on balance transfers with no balance transfer fee.
No annual fee for the first year. ($79 p.a. thereafter)
More info
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Yes
19.99% p.a.
ongoing
$0
1st year
then $79
Receive 15,000 Membership Rewards points or 7,500 Qantas Points when you apply, are approved and spend $750 outside of David Jones within the first 3 months of becoming a Card Member.
Earn up to 3 Reward Points per $1 spent at major supermarkets and petrol stations, 2 Reward Points per $1 spent at David Jones, and 1 Reward Point per $1 spent elsewhere.
Flexibility to choose Qantas Frequent Flyer or Membership Rewards as your rewards program.
More info
Add to comparison
Yes
20.74% p.a.
ongoing
$99
ongoing
No annual card fee to pay each year.
Base earn rate is 0.75 pt per $1 spent. Get an additional 1 point per $1 when spending with Virgin Australia.
0% p.a. for 12 months for balance transfers and a one-off credit plan establishment fee of 1%.
More info
Add to comparison
Yes
20.74% p.a.
ongoing
$0
ongoing
HSBC Platinum Credit Card
Apply by 30 apr 19
14 reviews
0% p.a. on balances transferred for 22 months, with no balance transfer fee.
$129 p.a. annual fee which is refundable each year when you spend $6,000 on eligible purchases.*
Earn 2 pts per $1 spent on overseas purchases.
More info
Add to comparison
Yes
19.99% p.a.
ongoing
$129
ongoing
0% p.a. for the first 18 months on balance transfers with a 2% balance transfer fee on amounts transferred. Reverts to 21.49% p.a.
Low annual fee.
Up to 44 days interest free on purchases when you pay your account in full each month.
More info
Add to comparison
Yes
19.74% p.a.
ongoing
$30
ongoing
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Win up to $1,000

When you get your credit score and apply for a credit card by March 1, 2019.

Q&As about Purchase Protection from customers

Q: What is credit card purchase protection?

Credit card purchase protection is a complimentary insurance policy attached to a credit card, providing a period of cover against loss, theft or accidental damage for most new items purchased using the credit card.

Q: What is the cost of credit card purchase protection?

There is no cost for credit card purchase protection. It is a complimentary insurance policy attached to some credit cards.

Q: Do all credit cards have complimentary purchase protection?

No. Most (but not all) personal (i.e. non-business) gold, platinum or black cards will have purchase protection included. Some lower-level cards also have this type of complimentary policy.

Q: What is the usual length of time for which purchases are covered?

In most cases cover is extended for a period of 90 days from the purchase date, but a very small number of premium cards offer 120 days of cover.

Q: What kind of purchases are covered?

Typically, the item must be new, and intended for personal use (which means that purchases for business purposes are not covered). Some types of items are usually excluded. The exclusion list may include animals and plants, cash, traveller’s cheques, tickets, perishable items, motor vehicles, antiques, computer software and services.

Q: Is there any limit to the claims I can make?

The amount you can claim for a single item is limited to the actual purchase price you paid using your card, after deducting any compensation you can receive by other means, such as a warranty on the item or a claim against a transit company. There may be a fairly low individual limit (such as $2,500) for an item classified as jewellery, a watch or fine art. Additionally, there may be an annual claim limit, such as $100,000.

Q: Does it matter where I bought the item?

It usually doesn’t matter whether you bought the item in a physical store or on the internet. Some policies may exclude goods purchased overseas.

Q: How do I make a claim?

You need to lodge a claim directly with the card issuer’s partner insurance company, not with the card issuer, and this must normally be done within 30 days of the loss, theft or damage. Details on how to make a claim may have been supplied in a printed booklet sent by the card issuer when you first opened the account. Alternatively, you can usually find information about the claims procedure online, as a link in your card’s web page.

Q: What documentation do I need to make a claim?

You will need a receipt or other written proof of purchase of the item with your card, showing the date and amount paid. As well as this you must prove your loss, and a police report may be necessary. In the case of a claim for damage, the damaged item must be retained for inspection if required.

Q: What if I disagree with the insurer’s decision about my claim?

The insurer will have a dispute resolution procedure, set out in the purchase protection policy documentation received with the card, or available online.

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