Cell Phones

3rd party insurance for cell phones

  • Last Updated:
  • Jan 13th, 2018 10:21 pm
Member
Feb 22, 2013
214 posts
21 upvotes
cal653 wrote:
Jan 7th, 2018 1:58 pm
Use multiple cards as stated before. Fido gives 1.5%. This 1% card is only used the odd time to buy phones. Most of the time its kept in a drawer at home, not daily carry. Just one out of more than a dozen cards kept on file.

Agreed only 2 year coverage but its free so I can't complain too much. It's 0.5% less than Fido, so the cost is a one time hit of $5 per $1000 phone value. If you compare carrier or Apple Care + ($170) Insurance it costs way more than that.

It's mainly useful if you lose your phone or doing something stupid like dropping and breaking the screen.

I don't think extended warranty covers user negligence / dropping for 2 years while this does.

Please feel free to advise a better no fee card to use for buying phones, I am always open to options.
The full price needs to be charged to the card. For that reason, to take advantage of credit card insurance (Purchase Protection and Extended Warranty), the phone has to be purchased outright and not on subsidy or combined with cash, gift card. Splitting the phone purchase between several cards will not qualify for the insurance coverage.
The Extended Protection feature automatically, without
registration, provides Cardholders with double the term of the Manufacturer’s
Warranty up to a maximum of one additional full year commencing immediately
following the expiry of the applicable Manufacturer’s Warranty on most items
purchased in Canada, the United States or worldwide when the full Purchase
Price is charged to the Card and the original Manufacturer’s Warranty is
honoured in Canada or the United States.
Member
Apr 14, 2006
259 posts
117 upvotes
You don't have a $2K card limit? That is not high....

I use only that one single card to buy a phone but other multiple cards to buy groceries / gas as they give a 1.5% - 3% return.

I have numerous other cards that offers extended warranty. Mobile device insurance is much harder to find. I set aside this card for phones purchases ONLY:

Mobile device insurance > Extended Warranty
(As Mobile device covers everything in extended warranty + more such as cracked screen from drops or lost phone as well as mechanical defects)

You can do subsidized phones too but I usually buy outright. It says you can activate mobile device insurance by:

1. Finance the purchase of your new device through your wireless service provider and pay your device's monthly wireless bill with your credit card.
OR
2. Purchase your new device with your credit card. For more information, see the certificate of insurance.

https://www.desjardins.com/ca/personal/ ... /index.jsp#
(Click the + sign on the Insurance section)
Member
Feb 22, 2013
214 posts
21 upvotes
cal653 wrote:
Jan 7th, 2018 4:16 pm
You don't have a $2K card limit? That is not high....

I use only that one single card to buy a phone but other multiple cards to buy groceries / gas as they give a 1.5% - 3% return.

I have numerous other cards that offers extended warranty. Mobile device insurance is much harder to find. I set aside this card for phones purchases ONLY:

Mobile device insurance > Extended Warranty
(As Mobile device covers everything in extended warranty + more such as cracked screen from drops or lost phone as well as mechanical defects)

You can do subsidized phones too but I usually buy outright. It says you can activate mobile device insurance by:

1. Finance the purchase of your new device through your wireless service provider and pay your device's monthly wireless bill with your credit card.
OR
2. Purchase your new device with your credit card. For more information, see the certificate of insurance.

https://www.desjardins.com/ca/personal/ ... /index.jsp#
(Click the + sign on the Insurance section)
That is only specific to the Desjardins credit card where non-full payment is accepted for coverage.

For people relying on the big four bank's credit card's Purchase Protection and Extended Warranty insurance, only full payment of outright purchase of cell phones qualifies for coverage, according to their certificate of insurance.
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May 8, 2009
2735 posts
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I'm with MBNA. Just learned that even if you put a phone on a 2 yr, whatever you pay upfront is insured. Example, say you pay $600 upfront for an iPhone X, then the bonus year warranty via credit card covers up to $600. The nice thing about this is it's usually handy to cover repair costs. Say you pay $300 upfront for a new phone on a 2 yr, and you smash the screen, then it's $250 to repair the screen, they'll cover your $250+tax repair.

Better than nothing.
Motorola phone. Linux on 2xcomputers. Brew beer & wine @home.
Home service reseller internet + FPL + antenna with streaming on smart TV
Wireless 1 line w/ Virgin on QC plan, few lines w/ Koodo to get phones, couple FreedomPop SIM's for roaming
Deal Addict
Sep 23, 2013
4338 posts
510 upvotes
NORTH YORK
KwameA wrote:
Dec 30th, 2017 3:02 am
Any active companies providing insurance for Cell phones bought outright?
Looking to purchase a new phone off contract but would like the peace of mind
I for one will not bother.
Likewise I would not buy insurance for a pile of bank notes (say around $1200). I would be just as careful as possible with the phone.
Daniel

Fido $15 3Gb plan
free TextmeUp SMS/MMS/incoming call
Deal Addict
Sep 23, 2013
4338 posts
510 upvotes
NORTH YORK
titaniumtux wrote:
Jan 8th, 2018 2:49 pm
I'm with MBNA. Just learned that even if you put a phone on a 2 yr, whatever you pay upfront is insured. Example, say you pay $600 upfront for an iPhone X, then the bonus year warranty via credit card covers up to $600. The nice thing about this is it's usually handy to cover repair costs. Say you pay $300 upfront for a new phone on a 2 yr, and you smash the screen, then it's $250 to repair the screen, they'll cover your $250+tax repair.

Better than nothing.
It does not matter that much as no matter what the buyer or client is paying for such privilege of having a coverage.
Both the carrier and manufacturer do not run any charity at all.
I believe iPhone does give better warranty to its phone. Well iPhone users pay for it through the high profit margin of the phone. Android phones just do not have it.
Those no name cheapo brand , like what I have (a BLU phone ) definitely has very little manueuvre room for top rate warranty work when needed.
Daniel

Fido $15 3Gb plan
free TextmeUp SMS/MMS/incoming call
Jr. Member
Apr 20, 2009
129 posts
21 upvotes
To clarify, the extended warranty that most credit card companies provide do not cover accidents and thefts. So if you accidentally drop it and smash the screen it's not covered. Some credit cards will offer this coverage for accidents and thefts for the first 90 days.

The Desjardins card offers both the extended warranty, AND coverage for accidents for two years from the purchase date.

The Desjardins card does require you to either charge the full outright price of your phone on the credit card and it's required to have an active cell phone plan with any Canadian wireless provider. If you get your phone subsidized via your carrier, you have to pay your wireless bill every month with the credit card until your contract with your wireless carrier is over. Also phones that are refurbished, or previously owned are not eligible for coverage at all.

As mentioned before the card has no annual fee, so the coverage is not as comprehensive as some of the protection plans that carriers charge a monthly fee for or the ones you purchase via various retailers.

There are deductibles as outlined below:
$25 for phones with purchase prices between $0-20 before taxes
$50 for phones with purchase prices between $200.01-$400
$75 for phones with purchase prices between $400.01-$600
$100 for phones with $600.01 and greater

In addition, they apply depreciation to determine the maximum amount you can be reimbursed. As per their contract depreciation is calculated at 2% per month.

So if you purchase an $800 phone and damage it after 8 months, they would take subtract 16% from $800 and then subtract your deductible, so the maximum you could be reimbursed is $572. This does not mean that they will automatically pay you $572 in the event of a claim. If it only costs $300 to repair your phone, you're only going to be reimbursed $300. In addition, the maximum payable for any one device is $1000.

Theft claims require a police report, and claims for accidental damage or mechanical failure require you to go seek out a repair facility to obtain an estimate, which you will then need to send in for approval. This differs from most protection plans offered by carriers and large retailers where they will typically have a large inventory of replacement phones (albeit refurbished) that they will pretty much ship out to you immediately once you file a claim.

As you can see the coverage is no where near as broad nor is it as easy to file a claim. However, I'm pretty careful with my devices and I don't buy electronics I can't afford to replace out of pocket so I'd rather go with the free protection, even though it's not as good. The card mostly sits at home. I only use it to buy my cell phone and I did sign up for pre-authorized payment for my cell phone bill as pre-authorized payments do net you 1% cashback. I have other cards with better rewards that I use for everyday purchases.
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May 8, 2009
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absolut123 wrote:
Jan 13th, 2018 12:21 am
To clarify, the extended warranty that most credit card companies provide do not cover accidents and thefts. So if you accidentally drop it and smash the screen it's not covered. Some credit cards will offer this coverage for accidents and thefts for the first 90 days.

...
Thank you for the extensive information.

I'll stick with what I have, which covers the cell if paid in full, or whatever is paid upfront for the phone. Heck, I don't even use my credit card for the extended warranty on phones anyway. At least the coverage I have doesn't have deductible or amortization. Since other cards extend was on phones paid in full, this is best for those who pay little or nothing upfront for a phone on a 2 yr term, especially the $800+ devices. Much cheaper than paying $100+ for carrier store or dealer kiosk's protection plan.
Motorola phone. Linux on 2xcomputers. Brew beer & wine @home.
Home service reseller internet + FPL + antenna with streaming on smart TV
Wireless 1 line w/ Virgin on QC plan, few lines w/ Koodo to get phones, couple FreedomPop SIM's for roaming

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