Purchase Protection: Credit Cards That Cover Your Belongings

Many credit cards in Singapore include a helpful benefit that can protect your recent purchases for a specific period. This feature offers coverage against unforeseen events like accidental damage or theft soon after you buy an item. 

In this guide, we’ll explore the details of these purchase protection programmes and how they can provide you with added peace of mind.

Purchase protection is a valuable credit card benefit that offers reimbursement to cardholders when eligible new purchases are accidentally damaged or stolen within a defined period following the purchase. 

This coverage typically lasts for a specific duration, often ranging from 30 to 90 days from the purchase date. Usually, there are claim limits, both per item and on an annual basis, and certain items might be excluded from coverage. What’s more, this benefit is more commonly found on premium credit cards in Singapore, such as the American Express Platinum card. 

It's also important to note that the specific terms, coverage amounts, and duration can vary significantly depending on the card issuer and the card tier. Some cards may even offer extended warranty coverage instead of, or in addition to, purchase protection. At the same time, a key requirement to be eligible for this benefit is that the item must have been purchased entirely using the specific credit card.

To utilise your credit card's purchase protection benefits, follow these general steps:

1. Verify benefits directly: Contact your credit card issuer directly to confirm if your card offers purchase protection and to understand the specific terms and conditions, as this information may not always be readily available on public websites.

2. Ensure eligible payment: Verify that the full purchase was made using a credit card that offers this protection.

3. Understand secondary coverage: Be aware that purchase protection usually acts as secondary coverage. So, if the item is already covered by your home insurance or travel insurance, your credit card claim may be denied.

4. Retain relevant documentation: Keep the original purchase receipts and the corresponding credit card statements.

5. Note insurer: Claims for credit cards in Singapore are often managed by insurance companies like Chubb and AIG on behalf of the card issuer.

6. Timely claim submission: File a claim with the insurer within the specified timeframe after the incident (e.g., within 30 days of the damage or theft).

7. Provide necessary documents: You’ll typically need to submit the purchase receipt, the relevant credit card statement showing the transaction, a police report if the item was stolen, and, if applicable, photographic evidence of the damage.

American Express Platinum insurance benefit: Purchase Protection

• Purchase Protection can protect purchases made with your Platinum Card against accidental damage or theft within 90 days from the date of purchase, up to the purchase price of each item. The coverage is limited to S$10,000 per incident of theft or damage and a total aggregate limit of S$50,000 per Card Member account per Period of Insurance. Coverage limits apply.

• Terms, conditions, and limitations apply.

• For more details, please visit American Express.

• Underwritten by Chubb Insurance Singapore.

Purchase protection offers a short-term safety net for your new belongings against accidental damage or theft. Additionally, this benefit can be valuable for those who frequently shop online, travel with new purchases, or invest in higher-value items. 

However, it's important to note that only select credit cards in Singapore, often premium ones, offer this perk. Before relying on it, cardholders should carefully evaluate if the card's annual fee justifies such benefits, review their specific card's benefit guide, and contact their bank directly to confirm their eligibility and the full terms and conditions.