American Express is known for offering some of the best credit card benefits in the industry, including purchase protection on many of its cards. However, there have been some changes to Amex’s purchase protection policy over the past few years that have led many cardholders to wonder if the benefit has been eliminated entirely.
What is purchase protection?
Purchase protection is a credit card benefit that provides coverage for eligible items that are damaged or stolen within a set timeframe after being bought with the card. For example, if you use your eligible Amex card to buy a new TV and it’s broken or stolen within 90 days, purchase protection would reimburse you for the cost (often up to a maximum amount per claim and per year).
Purchase protection provides cardholders with extra peace of mind when buying expensive items. It’s meant to complement a manufacturer’s warranty, which typically only covers defects, by protecting against accidental damage or theft.
How has Amex’s purchase protection changed?
In 2018, American Express introduced significant changes to its purchase protection benefit on new and renewed cards. Here are some of the key changes:
- Shorter benefit period: The coverage window for purchase protection dropped from 90 days to 120 days after purchase.
- Lower maximums: The max amount per claim decreased from $10,000 to $1,000.
- Excluded item categories: Certain items like jewelry, art, collectibles and fragile items are no longer eligible.
- New cards only: The scaled-back purchase protection only applies to new or renewed cards issued after July 2018.
These changes represented a major cutback in American Express’ purchase protection coverage for new cardholders. Many other credit cards still offer 90-day coverage windows and higher claim maximums.
Did Amex get rid of purchase protection completely?
No, American Express did not get rid of purchase protection entirely. Here’s a summary:
- Cards issued prior to July 2018 still have the original purchase protection benefit.
- Cards issued or renewed after July 2018 have the reduced 120-day coverage and lower $1,000 per claim maximum.
- Certain Amex cards never had purchase protection, like the Amex EveryDay® Credit Card.
So while the coverage was greatly scaled back on new/renewed cards in 2018, American Express still offers some level of purchase protection depending on when your card was issued.
Does purchase protection still offer any value?
The revamped purchase protection benefit does still offer some coverage, though more limited than before. Here are some of the key remaining advantages:
- Covers accidental damage and theft for 120 days.
- Applies to new purchases up to $1,000 per claim and $50,000 per cardholder.
- No annual limit on number of claims.
- Minimal documentation required for claims.
- Covers purchases made anywhere in the world.
While the shorter window and lower maximums reduce the value compared to the old rules, there’s still the potential to get reimbursed for smaller purchases you damage soon after buying. However, for expensive items or those you want to cover for a longer period, you may need to consider third-party insurance.
How does Amex purchase protection compare to other cards?
Card | Coverage Window | Maximum per Claim |
---|---|---|
Amex (old benefit) | 90 days | $10,000 |
Amex (new benefit) | 120 days | $1,000 |
Chase Sapphire Preferred | 120 days | $500 |
Citi Premier | 90 days | $1,000 |
Discover it® Cash Back | 90 days | $500 |
Compared to other major credit cards, the new Amex purchase protection benefit is less generous than older Amex cards but still competitive. The 120-day coverage period is better than some cards, though the lower maximum claim amount is a disadvantage.
When does purchase protection make sense?
Given the limitations of today’s Amex purchase protection, it really only makes sense for inexpensive items or gifts you want to cover for the short term. For anything over $1,000 or that you want protected for more than 120 days, you’ll need to look into other insurance options.
You may be able to add valuables like jewelry, art, collectibles, computers, phones, and other electronics to your homeowners or renters insurance policy.
Extended warranties directly through the retailer or manufacturer are also a good option for expensive electronics and appliances.
Finally, you can get standalone policies through third-parties like SquareTrade and Worth Ave Group to insure high-end purchases not covered elsewhere.
What are the exclusions?
Like any insurance policy, American Express purchase protection comes with exclusions. Here are some of the main items and situations not covered:
- Used, antique or collectible items
- Motorized vehicles and parts
- Boats, aircraft, drones, hovercrafts
- Land, buildings, permanently installed items
- Travelers checks, tickets, documents
- Professional services
- Damage caused by vermin, insects, cleaning
- Mysterious disappearance
- Normal wear and tear
- Inventory and other business or commercial items
Make sure to check the full terms for your Amex card, as exclusions can differ slightly depending on the specific product.
What are the coverage limitations?
Aside from the $1,000 per claim and $50,000 per cardholder annual limits, there are some other limitations to be aware of with Amex purchase protection:
- Only covers up to the amount charged on the card (minus rewards/miles/points).
- You need to make reasonable effort to protect items from further damage.
- Coverage is secondary to any other applicable insurance or warranties.
- Covers actual cost to repair or replace, may be less than purchase price.
Review the full coverage terms to understand exactly what is and isn’t covered by Amex purchase protection before depending on it to cover a major purchase.
How do I file a purchase protection claim?
Here are the steps to file a claim for Amex purchase protection:
- Gather documentation: Receipt showing card payment, repair estimate/receipt, police report if applicable.
- Call 1-800-228-6855 or go online to start a claim within 30 days.
- Provide documentation to verify eligibility for coverage.
- Allow 30 days to receive claim decision after all docs submitted.
- If approved, receive reimbursement check or account credit within 7 days.
One of the benefits of Amex coverage is that claims can often be completed without sending in paperwork. You may just need to provide details over the phone or online.
What documents do I need?
Some of the key documents required for a successful Amex purchase protection claim include:
- Card statement showing the full purchase amount.
- Itemized purchase receipt.
- Estimate for repair or replacement if damaged.
- Police report if stolen.
- Any other applicable insurance or extended warranty documentation.
Having complete details will help ensure your claim can be processed promptly.
Is Amex purchase protection worth it?
For expensive items or those you want covered for more than 120 days, probably not. You’ll be better off with other specialized insurance.
But for inexpensive purchases soon after buying, Amex purchase protection can still provide value against accidental damage or theft.
Just don’t expect the same level of generous coverage as the old Amex purchase protection benefit provided.
Key takeaways
- Amex did not eliminate purchase protection but significantly scaled back the coverage in 2018.
- Cards issued before 2018 still have the old 90-day, $10K per claim benefit.
- New/renewed cards have a lower 120-day, $1K per claim benefit.
- The new Amex purchase protection is less valuable but still competitive.
- It’s worth it mainly for inexpensive items you want short term coverage for.
- For longer or higher value coverage, you need other specialized insurance.