When your cellphone is lost, stolen or just stops connecting to the world, you’ll probably feel a little down on your luck.
Fortunately, a handful of credit cards offer built-in cellphone insurance, giving you a valuable financial lifeline when that all-important handheld device needs to be replaced. This credit card benefit – one that many cardholders aren’t even aware of – can be valuable if your cellphone is stolen, damaged or needs replacement.
In 2013, the average price of a smartphone in North America was $531, which increased to $567 in 2017 according to Statista. Recent smartphone models, including the iPhone X (which was priced around $1,000 at launch) and the new iPhone 12 (which starts at around $800) have pulled up the entire average for that product category. Considering this cost increase, insurance can be a pretty worthwhile safety net for most Americans.
Here we cover some rewards credit cards that offer cellphone insurance and other perks just for paying your cellphone bill.
See related: Best credit cards for paying monthly bills
Wells Fargo Propel American Express® card*: Best for no annual fee
Ink Business Preferred® Credit Card: Best for business owners
Citi Prestige® Card*: Best for frequent travelers
Chase Freedom Flex℠: Best for cash back
U.S. Bank Visa Platinum Card*: Best for low interest
Wells Fargo Cash Wise Visa® card: Best for cash back while paying on the go
Deserve® EDU Mastercard for Students: Best for students with no credit history
The Platinum Card® from American Express: Best for frequent travelers
What is cellphone insurance?
Dakota McKinnon, a public relations professional in Las Vegas, has two Wells Fargo consumer credit cards – the Wells Fargo Propel from American Express and the Wells Fargo Rewards card. Both come with cellphone insurance – but McKinnon simply wasn’t aware of this fact.
Had he known of the perk, Dakota says he would have already leveraged its benefits – multiple times, too.
“Do you know how many damaged iPhones I could have had replaced through the incentive? Roughly five,” McKinnon says. “I have been using iPhones since 2009 when the iPhone 3G was released. If I would have known about this incentive back in my college days, I probably would have been more inclined to use my credit card more advantageously.”
What’s covered by cellphone insurance?
Most cellphone insurance offerings cover phones that are either stolen or damaged (and unusable as a result). Some exceptions to these rules might include:
- Phones that are stolen from checked luggage during travel
- Phones that disappear without reason
- Damage caused by normal wear and tear, flooding or natural disaster
- Damage caused by “war, invasion, rebellion or insurrection”
- Cosmetic damage that doesn’t impact the phone’s usability
The majority of policies do not cover lost phones.
What cards offer cellphone insurance?
Not all credit cards offer cellphone insurance, but more are adding similar benefits. American Express rolled out cellphone insurance benefits on many of its cards in April 2021. Cards vary in how much they’ll cover per claim. Check out the top credit cards currently offering some form of cellphone insurance:
| Card |
Coverage / claim limits |
Deductible (per claim) |
Rewards rate |
| Wells Fargo Propel American Express card |
- $600 per claim
- $1,200 per 12-month period
- 2 claims per 12-month period
|
$25 |
- 3 points per dollar on dining, travel and transit, gas station purchases and select streaming services
- 1 point per dollar on other purchases
|
| Ink Business Preferred Credit Card |
- $600 per claim
- $1,800 per year
- 3 claims per 12-month period
|
$100 |
- 3 points per dollar on travel, shipping, internet, cable, phone services and advertising purchases (on up to $150,000 combined purchases yearly)
- 1 point per dollar on other purchases
|
| Citi Prestige Card |
- $1,000 per claim
- $1,500 per 12-month period
- 2 claims per 12-month period
|
$50 |
- 5 points per dollar on air travel and restaurants
- 3 points per dollar on hotels and cruise lines
- 1 point per dollar on other purchases
|
| Chase Freedom Flex |
- $800 per claim
- $1,000 per 12-month period
- 2 claims per 12-month period
|
$50 |
- 5% cash back on rotating bonus categories that you must activate each quarter (on up to $1,500 per quarter)
- 5% cash back on travel purchased through Chase Ultimate Rewards
- 3% cash back on dining and drugstore purchases
- 1% cash back on other purchases
|
| U.S. Bank Visa Platinum Card |
- $600 per claim
- $1,200 per 12-month period
- 2 claims per 12-month period
|
$25 |
None |
| Wells Fargo Cash Wise Visa |
- $600 per claim
- $1,200 per 12-month period
- 2 claims per 12-month period
|
$25 |
1.5% cash rewards on purchases |
| Deserve EDU Mastercard for Students |
- $600 per claim
- $1,000 per 12-month period
- 2 claims per 12-month period
|
$50 |
1% cash back on all purchases |
| The Platinum Card from American Express |
- $800 per claim
- 2 claims per 12-month period
|
$50 |
- 5 points per dollar for flights booked directly with airlines or with American Express Travel (on up to $500,000 on these purchases per calendar year)
- 5 points per dollar on prepaid hotels booked with American Express Travel
- 1 point per dollar on general purchases
|
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