Credit cards with cell phone protection

  Credit Card Reference

Many credit cards offer “purchase protection” for damaged and stolen items. However, these protections only apply during the first 60 - 120 days. But some credit cards offer free coverage for damaged or stolen cell phones that works throughout the entire life of your phone.

Given the cost of paying for 3rd party cell phone insurance, free coverage from your credit card can save you significant amounts of money each year.

To get coverage, you don’t have to buy your cell phone with the credit card, but you do have to use the card to pay your monthly bill. Coverage will apply automatically for any month you use the card.

Tips for taking advantage of credit card cell phone protection

• Using a card that offers cell phone protection often means missing out on some potential reward points, but it is usually worth it. The base reward rate from the cards that offer cell phone coverage might be lower than the reward rate from your general purpose card. For example, the Citi Prestige card offers great cell phone coverage, but only earns 1 ThankYou point per dollar. You can probably earn an extra 1% in rewards by paying your cell phone bill with your general purpose card. If you pay a family cell phone bill of $200 with the Prestige card, to take advantage of the cell phone insurance, you'd be giving up about $2 per month in rewards.
• You usually aren't covered for "lost" phones. The phone either needs to be stolen or damaged. In addition, you aren't usually covered if your phone is stolen under specific circumstances, such as from your baggage when you are travelling.
• Coverage is “secondary” to any other insurance you have, such as homeowners, auto, or renter’s insurance. That means your own insurance needs to pay out first, and the credit card coverage will only cover any remaining charges. So, if your homeowners or rental policies provide cell phone coverage, you may not gain any additional benefit from using one of these credit cards.
• It can be worthwhile for you to cancel your homeowner’s or rental’s insurance’s cell phone coverage. That way, if you have a problem, you can take advantage of the credit card’s coverage, without worrying about an increase in your insurance rates.
• Coverage doesn’t cover leased or prepaid phones. It can be unclear when a cell phone purchase plan is considered a lease and when it is just considered an alternative financing plan. If you aren't buying your phone outright, you can call the credit card company to make sure your phone will be covered.  
• You might need the receipt from when you bought your cell phone. Most credit cards only require some sort of proof that the damaged cell phone is part of your cell phone plan. If you don't have a receipt, check the coverage details before you rely on the card's insurance. Try to keep cell phone purchase receipts for any future purchases.
• There are time limits to filing a claim. You will also need to file an official police report if your phone was stolen.

Cards that offer cell phone protection

Not very long ago, very few cards offered free cell phone insurance, and most of those were business cards. As of July 1st, there will be many options.

• As of July 1st, all World and World Elite Mastercards will include cell phone insurance. Exact details haven't been published yet, so we don't know the maximum number of covered lines. Rumors are that the deductible will be $50. We do know that the insurance includes coverage for "cosmetic screen scratches". Coverage is limited to $1,000 per year and $800 per incident(for World Elite cards) or $600 per incident (for World cards). Claim Webpage.
• The Citi Double Cash Card offers the best reward rate of the eligible cards: 2% cashback with no annual fee.
• There are several World and World Elite Mastercards that you might want for other reasons. For example, you might want an American Airlines card for its free checked bag benefit. If you have one of these cards, it often isn't worth going out of your way to get an additional card that offers slightly better cell phone coverage or cell phone service rewards—just make sure to use the card you already have. Likely cards include the Citi Premier Card, IHG Select Card, Citi Rewards+ Card, and American Airlines Platinum Card.
• The Citi Prestige Card offers higher coverage limits. It has the same $50 deductible as the other World Elite cards, but the maximum liability is $1,000 per claim, up to $1,500 per year. That makes it an excellent option to cover the theft or complete destruction of a high-end phone. On the other hand, they explicitly state that they won't cover minor screen cracks, while other Mastercards explicitly cover it, and most other cards are ambiguous. Coverage Details.
• Our top no-annual fee cashback card recommendation, the State Department Credit Union Preimum CashBack+ Card, includes free cell phone coverage, but has low coverage limits. If you decide to go with a no-annual-fee 2% cashback card, one advantage of the SDFCU CashBack+ card (and the Citi DoubleCash card) is that it includes free cell phone coverage. The deductible is $50, but coverage is limited to only $250 per claim and 2 claims per year. Coverage Details.
• All the Wells Fargo personal credit cards, including the no-annual-fee Wells Fargo Cash Wise card, come with free cell phone insurance and only a $25 deductible. The deductible for these cards is lower than the deductibles on most of the other cards. That makes it a great option for anyone who already has a Wells Fargo card and doesn't mind the lower per-claim limit. Coverage is limited to $600 per claim and two claims per year. Coverage Details.
• The Uber Credit Card covers an unlimited number of lines and also has a lower deductible. The deductible is only $25, the maximum coverage is $600 per claim and two claims per year. Along with cell phone coverage, the Uber card offers one of the best reward rates on dining (4%) that you can get from any card, and has no annual fee.
• Several business credit cards with cell phone coverage offer better rewards for paying your cell phone bill. Using one of these cards will increase the rewards you earn each month and would seem like the best possible option. Unfortunately, coverage is limited to employee phones. If you want to insure non-employee family members, you'll want to stick with a personal card, but one of these cards is the best option for someone who only need to insure the phones of legitimate employees.
• The Ink Preferred Card earns 3x Ultimate Reward points on telecommunications services, making it the most rewarding option. However, the deductible is $100. Coverage is limited to $600 per claim and a maximum of three claims per year.
• The First National Bank Business Edition Card earns 5 points (worth a total of 3.75 cents) on telecommunication services, making this the most rewarding option if you can't get the Ink Preferred card. Covers up to $600 per claim, with a $50 deductible, up to $1,000 total in a year. Covers up to five lines. No annual fee.
• The no-annual-fee U.S. Bank Platinum Card includes free cell phone coverage. Like the Wells Fargo cards, the deductible is only $25, and the card will cover up to four lines. Total coverage is capped at $600 per claim and two claims per year. This card doesn't offer any rewards at all. Coverage Details.

Other cards

Doctor of Credit and Magnify Money both have lists that include some other cards that offer free cell phone coverage, that are issued from some smaller banks and credit unions. The Magnify Money list is more dated, but more comprehensive. The Doctor of Credit post includes full details about terms and exclusions.

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