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Credit card ancillary benefits are far too often overlooked and forgotten. Trip delay protection, delayed/lost baggage reimbursement, concierge services, rental car collision damage waivers and lounge access are some of the valuable protections that come with select credit cards.
Today, I’m digging in to another little-known benefit — automatic cell phone protection — a perk that can prevent you from having to buy a new $600+ smartphone in case clumsiness, bad luck or mechanical malfunction proves Murphy’s Law correct. Other credit card protections like extended warranty protection and purchase protection can cover you when you purchase a new cell phone with select credit cards. But, this article focuses on the protection provided by select credit cards when you pay your cell phone bill with the card.
On top of offering 3 points per dollar when you use the card to pay your monthly bill, the Ink Business Preferred from Chase protects your phone and any eligible phones listed on the same bill with supplemental protection. That means damage may be covered, assuming the phone is not listed on any insurance policy from the provider or on your personal home/valuable property insurance.
This protection is subject to a $100 deductible per claim and a maximum of three claims per 12-month period. The maximum benefit limit is $600 per claim and $1,800 per 12-month period. The protection covers damage and theft. As per Chase, it does not cover:
- Cellular wireless telephone accessories other than standard battery and/or standard antenna provided by the manufacturer.
- Cellular wireless telephone purchased for resale.
- Cellular wireless telephones that are lost or “mysteriously disappear”. “Mysterious disappearance” means the vanishing of an item in an unexplained manner where there is absence of evidence of a wrongful act by a person or persons.
- Cellular wireless telephone under the care and control of a common carrier (including, but not limited to, US Postal Service, airplanes, or delivery service).
- Cellular wireless telephone stolen from baggage unless hand-carried and under Your personal supervision, or under the supervision of Your traveling companion who is previously known to You.
- Cellular wireless telephone which has been rented, leased, borrowed or cellular wireless telephones that are received as part of a pre-paid wireless service plan or “pay as you go” type service plans. Cosmetic damage to the cellular wireless telephone or damage that does not impact the cellular wireless telephone’s capabilities and functionalities of the phone.
- Damage or theft resulting from abuse, intentional acts, fraud, hostilities of any kind (including, but not limited to, war, invasion, rebellion, or insurrection), confiscation by the authorities, risks of contraband, illegal activities, normal wear and tear, flood, earthquake, radioactive contamination, or damage from inherent product defects.
- Damage or theft resulting from misdelivery or voluntary parting with the cellular wireless telephone.
- Replacement cellular wireless telephone not purchased from a cellular service provider’s retail or Internet store, (for example: Verizon Wireless, Sprint Wireless, etc.) or from an authorized cellular phone retailer.
- Taxes, delivery and transportation charges, and any fees associated with the cellular service provider.
You must file a claim within 60 days of the incident and provide all required documentation for the claim within 90 days of the incident in order to avoid claim denial. You can go to page 48 of your Chase Ink Business Preferred benefits guide to read all the fine print for the protection.
The Wells Fargo Propel Amex also includes cell phone protection — just pay your monthly cell bill with the card and get up to $600 in protection against covered damage or theft (subject to a $25 deductible). The protection policy doesn’t cover lost phones, and there’s a maximum of two claims (up to $1,200) per 12-month period. Reimbursement is limited to the repair or replacement of your original cell phone. Coverage doesn’t apply to cell phones that are rented, borrowed or received as part of a prepaid plan. Electronic failure or issues related to the software of the device also aren’t covered. But, this protection is pretty great considering this card has no annual fee.
This coverage is also supplementary to any other insurance you may have for your phone, but may pay the deductible for other insurance. Make sure you read all of the fine print of the policy in order to ensure your claim is eligible for approval.
The following other Wells Fargo Credit Cards also offer cell phone protection:
- Wells Fargo Cash Wise Visa® Card
- Wells Fargo Visa Signature Card
- Wells Fargo Rewards Card
- Wells Fargo Platinum Card
- Wells Fargo Cash Back College Card
- Wells Fargo Secured Credit Card
The Uber Visa Card
The Uber Visa Card offers 4% cash back on dining, 3% back on hotels and airfare and 2% back on online purchases without charging an annual fee. Plus, the Uber Visa Card provides up to $600 for mobile phone damage or theft when you charge your total monthly wireless telephone bill to your card. Theft, damage and involuntary and accidental parting of your cell phone are covered. Coverage is secondary though, so you’ll need to file with any other applicable insurers first.
You’re covered up to $600 per claim after a $25 deductible, but coverage is only up to the suggested retail value of a replacement cell phone. You can only have two claims per 12 month period and these claims can total no more than $1,200. See your guide to benefits for complete details.
U.S. Bank Visa Platinum Card
The U.S. Bank Visa Platinum Card includes a cell phone protection benefit that covers damage or theft up to $600, with a $25 deductible, for up to two claims ($1,200) per 12-month period. This benefits protects your primary cell phone line and any secondary, additional or supplemental lines when you pay your cell phone bill every month with your U.S. Bank Visa Platinum Card. The secondary coverage provided by this card is similar to the coverage provided by the Wells Fargo Propel and the Uber Visa Card, but check your guide to benefits for full details.
Is It Worth it?
If you have a credit card that offers cell phone protection, I believe it’s a no brainer to use this card to pay your cell phone bill. This way you’ll have coverage for you and others on your plan without needing to pay your phone company for device coverage. The Ink Business Preferred has a $100 deductible, but you’ll earn 3 Chase Ultimate Rewards points per dollar spent on cell phone bills. So, if your family has a $200 cell phone bill each month you’ll earn 7,200 Ultimate Rewards per year, which TPG values at $144. The other cards described in this article don’t feature bonus earning when you pay your cell phone bill, but they each only charge a $25 deductible and don’t have an annual fee.
If you don’t currently have a credit card that offers cell phone coverage, you should evaluate whether the potential money saved by picking up a card that offers this protection and using it to pay your cell phone bill is worth foregoing the points you are currently earning by paying your cell phone bill with another credit card. After all, many of these cards don’t charge an annual fee and also offer solid bonus earning in other categories.
Note that as of May 1, 2019 the Citi Prestige Card will offer cell phone protection. Once this benefit is active, this guide will be updated to include the Citi Prestige.
Knowing you have coverage, with potentially only a $25 deductible, could really pay big dividends in case your expensive smartphone is damaged or stolen. Remember these policies are supplemental though, so the coverage provided by these credit cards will be most valuable if you don’t already have another type of insurance currently protecting your cell phone.
Featured image by praetorianphoto via Getty Images.
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One of the most unique benefits of this card is that you can get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Propel Amex. This card is also a great option for gas purchases since you'll earn 3X points and the 30,000 point sign up bonus is worth $300 cash back.
- Earn 30K bonus points when you spend $3,000 in purchases in the first 3 months – that’s a $300 cash redemption value
- $0 Annual Fee
- Earn 3X points for eating out and ordering in
- Earn 3X points for gas stations, rideshares and transit
- Earn 3X points for travel including flights, hotels, homestays and car rentals
- Earn 1X points on other purchases
- 0% Intro APR for 12 months on purchases and balance transfers (fees apply), then a 16.24%-27.24% variable APR; balance transfers made within 120 days qualify for the intro rate and fee
- Select "Apply Now" to learn more about the product features, terms, and conditions