The best credit cards with mobile device insurance in Canada

Many credit cards now offer mobile device insurance, and it’s easy to see why. Smartphones aren’t cheap, so having his type of insurance is a valuable perk that can save you a lot of money. Let’s break down how mobile device insurance works and look at the best credit cards in Canada that offer this credit card benefit.

What is mobile device insurance?

Credit card mobile device insurance typically includes $1,000 in coverage for a damaged or stolen phone, as long as you purchased the device or pay for the monthly contract using the credit card. The insurance covers only the phone itself—it doesn’t cover the battery or any accessories, such as headphones or a protective case. Pre-owned or refurbished phones are not covered, even if you use the credit card to make the purchase.

How credit card mobile device insurance works

As with any insurance policy in Canada, there are a few details to watch for when it comes to mobile device insurance.

Coverage period: When you buy a new mobile device on your credit card, the insurance doesn’t usually begin immediately. There’s often a delay of one to three months before it begins. Additionally, the coverage isn’t forever—typically, coverage applies for a maximum of two years from the purchase date.

Coverage limit: Mobile device insurance is usually capped at $1,000, meaning that any money you spend above that threshold will not be covered should something happen to your device.

Deductible: Like other insurance policies, mobile device coverage usually comes with a deductible—the amount you pay before receiving any insurance benefits. Some policies calculate the deductible based on the purchase price of the device, while others account for the purchase price and depreciation.

Depreciation: Mobile device insurance takes depreciation into account when determining the value of your phone. In simple terms: The longer you own the device, the less it’s worth. A standard rate of depreciation is 2% per month, meaning that in a year, your phone will have lost 24% of its value.

Lost or stolen devices: If you make a claim for a missing device, you have 48 hours to notify your provider and stop your wireless service. The insurance doesn’t cover devices stolen from checked luggage or baggage not in your possession.

Claim limits: You’re entitled to make one claim per year. In the case of some credit card companies, this limit applies across all cards.

Although there are some limitations with credit card mobile device coverage, it’s an attractive perk, because it doesn’t cost you anything extra and applies automatically.