There are a few good credit cards that offer mobile device insurance, but some stand out above the rest for their extended coverage and additional benefits. I constantly keep up with the latest promo rates and policy changes and make my recommendations below based on years of experience.
I recommend the Tangerine World Mastercard as the #1 credit card with mobile device insurance in Canada. It's one of the most flexible cards, it doesn't charge an annual fee, plus it comes with a very generous $150 welcome bonus and an excellent promotional cash back rate for the first two months.
What Is A Credit Card With Mobile Device Insurance?
Credit cards that offer mobile device insurance are a very select type of credit card that covers your mobile devices in case of damage, loss, or theft. Credit cards that include this service will fully cover the cost of repairing or replacing your device or offer a reimbursement of up to $1,500.
Credit card mobile device insurance coverage activates whenever you use your eligible credit card to purchase a mobile device. Credit cards that offer this service have annual fees ranging from $120-$150, and also include comprehensive travel and medical insurance. Alternatively, you can go for a no-fee credit card with mobile device insurance; just keep in mind those are more limited in terms of insured categories.
Without further ado, here are the best credit cards with free mobile device insurance Canada has to offer:
The Best Credit Cards With Mobile Device Insurance
- Tangerine World Mastercard: Best for cash back rewards with no annual fees.
- American Express Cobalt Card: Best for travel insurance coverage.
- BMO Eclipse Visa Infinite Card: Best for lifestyle (gas, groceries, and dining out) purchases and bonus points.
- National Bank mycredit Mastercard: Best for no annual fees with no minimum income requirement.
- Scotia Momentum Visa Infinite Card: Best for cash back rewards and access to Visa infinite card benefits.
- RBC Avion Visa Infinite: Best for maximum coverage on mobile device insurance.
How Do Credit Cards With Mobile Device Insurance Work?
Mobile device insurance credit cards automatically qualify holders for mobile device insurance where the purchase of the device is financed using these credit cards. Coverage only applies to new mobile devices and caters for events such as loss, theft, or accidental damage of such devices. If any of the above occurs, the insured party is reimbursed the depreciated value of the mobile device, net any applicable deductibles. Most of these cards offer additional benefits apart from mobile device insurance.
What Is Depreciated Value?
The depreciated value is the estimated value of the mobile device when damage, loss, or theft occurs. It is calculated by reducing the phone's purchase price by a specified percentage annually to cater to the mobile device's regular wear and tear. The annual depreciation rate applied by most mobile insurance credit card providers is 2%.
What Is A Deductible?
A deductible is a required amount of money an insured must pay for a claim before the insurance company pays on the claim. Deductibles for mobile insurance coverage could either be a fixed amount (e.g., $100) or a fixed percentage (e.g., 1%) after factoring in the depreciation on the mobile phone.
If you purchase a new mobile device with a purchase price of $800 and file a claim for loss six (6) months after purchase, the maximum reimbursement will be calculated as follows:
|Less depreciation (2% x 6 months x $800)||$96.00|
|Equals depreciated value||$704.00|
|Less deductible (10% X $704)||$70.40|
|Maximum benefit payable||$633.60|
Pros & Cons Of Credit Cards With Mobile Device Insurance
- They provide reimbursement if your device is damaged accidentally, lost, or stolen.
- Most of them offer other insurance benefits, such as travel insurance coverage, in addition to mobile insurance coverage.
- Annual fees on some of these credit cards could be as low as $0.
- Most require a monthly or annual fee which could be pretty costly.
- Eligibility requirements for some cards may be expensive as some may require a minimum yearly total spend of $15,000.
Credit Cards With Mobile Device Insurance FAQs
Why Get Credit Cards With Mobile Device Insurance?
While some phone manufacturers may provide insurance coverage for free when you purchase your cell phone, not all do. Getting a credit card that offers mobile device insurance coverage could save you the additional expense of paying for insurance coverage out-of-pocket.
How Do You Choose A Credit Card With Mobile Device Insurance?
Since coverage details may differ by credit card, it is essential to read through the insurance certificate of these credit cards to ascertain that the terms of mobile device coverage are favourable to you.
Also, weigh the benefits against the annual fees, where applicable, to ensure the fees are worth paying.
How Do You File A Mobile Device Insurance Claim?
The procedure for filing a mobile device insurance claim may differ by the credit card provider. Therefore, it is important to read the credit card's insurance certificate to obtain details on claim filing. Here are the steps to file a claim in case of loss, damage, or theft:
- Notifying the credit card company as soon as possible
- Filling out the form including supporting documents like:
- Copy of the original store receipt for the mobile device purchase.
- Statement and/or receipt showing that the mobile device was paid in full using the credit card.
- Copy of the written repair estimate ( if the claim is on a damaged device).
- Original police report or other reports to local authorities (if the device was stolen).
How Do You Apply For A Credit Card With Mobile Device Insurance?
To obtain a mobile insurance credit card, you must be considered eligible by the credit card provider.
Eligibility requirements differ by credit card, but they often include the following:
- You must be a permanent Canadian resident.
- You must have attained majority age in the Canadian province of residence.
- You must have a minimum individual or annual household income of a certain amount.
When Does Coverage On A Credit Card With Mobile Device Insurance become Effective?
The mobile device insurance credit card coverage can kick in as early as the date of purchase or as late as 90 days after the mobile device's purchase, depending on the terms stipulated within the credit card's insurance certificate.
Are Credit Cards With Mobile Device Insurance Worth It?
While getting credit cards simply for mobile device coverage is not advisable because they may have annual fees, mobile device insurance credit cards could be worth it based on the additional rewards and benefits they offer.
What Incidents Do Credit Cards With Mobile Device Insurance Cover?
They usually cover accidental damage, loss, or theft of the mobile device.
What Incidents Do Credit Cards With Mobile Device Insurance Not Cover?
Mobile device incidents not covered include:
- Phone Accessories.
- Regular wear and tear of the mobile device.
What Is The Best Free Credit Cards With Mobile Device Insurance In Canada?
We recommend the Tangerine World Mastercard as the best free credit card with Mobile Device Insurance in Canada.
What Are Other Mobile Device Insurance Credit Cards Available In Canada?
- TD Aeroplan Visa Platinum Card
- Meridian Visa Infinite Cash Back Card
- TD Aeroplan Visa Infinite Card
- Odyssey World Elite Mastercard
- Scotiabank American Express
- HSBC Cash Rewards Mastercard
- BMO eclipse Visa Infinite Privilege Card
- TD Aeroplan Visa Infinite Privilege Card
- Brim Mastercard
- Brim World Mastercard
- Brim World Elite Mastercard
- Desjardins Cash Back Visa
- Desjardins Cash Back Mastercard
- CIBC Aeroplan Visa Infinite Card