Credit Cards With Cell Phone Insurance in Canada: How the Coverage Works
A new phone can cost well over $1,000, and carrier protection plans add a monthly charge. Many Canadian credit cards include mobile device insurance at no extra cost, covering loss, theft and accidental damage when you buy the phone with the card.
The coverage varies a lot between cards, and the payout is usually smaller than the headline limit. Here's how it works.
Which credit cards include cell phone insurance?
| Card | Phone cover | Annual fee |
|---|---|---|
| BMO eclipse rise Visa Card | $1,000 | $0 |
| CIBC Costco Business Mastercard (business) | $1,000 | $0 |
| CIBC Costco Mastercard | $1,000 | $0 |
| MBNA Rewards Platinum Plus Mastercard | $1,000 | $0 |
| moi RBC Visa | $1,000 | $0 |
| More Rewards RBC Visa | $1,000 | $0 |
| More Rewards RBC Visa Infinite | $1,000 | $0 |
| Scotia Momentum for business No Fee Visa Card (business) | $1,000 | $0 |
Show all 47
47 of the 139 cards CardTruth tracks. Built from each card's teardown, so it updates when a card changes.
The "Phone cover" column is the maximum per claim. Coverage isn't limited to premium cards: the no-fee BMO Eclipse Rise Visa includes it too. Each teardown has the deductible, the depreciation rate and the claim limits from the certificate of insurance.
How do you qualify?
On most cards, the phone is covered if you either:
- pay the full price with the card, or
- finance it through your carrier and charge every monthly plan payment to the card.
If you finance the phone and miss charging even one plan payment to the card, coverage can end. Set the carrier bill to auto-pay on that card.
How much does it actually pay?
Two things reduce the payout below the limit:
- Depreciation. Many policies reduce the phone's value each month after purchase, often by 2% a month.
- A deductible. Often a percentage of the claim, or a fixed amount tied to the purchase price.
For example, a $1,000 phone damaged 12 months after purchase, on a policy with 2% monthly depreciation and a 10% deductible: the depreciated value is $760, and the deductible brings the payout to about $684.
What isn't covered?
Common exclusions in the certificates we've read:
- Lost phones on some cards, which cover only theft and damage
- Cosmetic damage such as scratches that don't affect how the phone works
- Claims beyond a set number, for example one per 12 months
- Phones bought before you got the card, or not bought new
Card insurance or the carrier's plan?
Card coverage costs nothing extra, but it pays a depreciated value and you deal with the insurer after the fact. A carrier or manufacturer plan costs monthly, but usually repairs or replaces the phone directly. If you already have a card on the list, you may not need both. Check its teardown for the exact terms before you decide.
Looking for a card that fits your spending as well as your phone? Try Card Match, or read what to check in credit card travel insurance.