10 credit cards with mobile device insurance in Canada
By: Aya Alhakim on February 25, 2025
A decade ago, you probably wouldn’t have heard about insuring your cell phone. But as the cost – and necessity – of smartphones has increased, it’s become more important than ever to protect your mobile device. Fortunately, many credit card providers have started offering mobile device insurance as a perk for cardholders.
Mobile device insurance is designed to cover you if your phone is lost, stolen, or damaged, minus depreciation and deductible.
This guide will help you understand what mobile device insurance covers, how to make a claim, and how to find a credit card with this feature that fits your lifestyle.
In this article:
How does mobile device insurance work?
As mentioned, mobile device insurance kicks in if something happens to your phone. However, like any other form of insurance, the coverage isn’t always straight-forward. Here’s what you need to know:
- Coverage limits: Most policies cover up to $1,000 per phone.
- Eligibility: To qualify, you must have either purchased the phone outright using a credit card with mobile device insurance or use the card to pay monthly installments.
- Activation period: Coverage typically begins after 30, 60, or 91 days, or after a few billing cycles, depending on the card’s policy – so if you lose your phone soon after buying it, you may be out of luck!
- Claim limits: Some policies limit the number of claims you can make in a year.
- Exclusions: Policies often exclude items like batteries, used devices, or phones bought for business use.
Impacts to your claim payout
If something happens to your phone and you need to make a claim, you’re not likely to get the full amount that you paid for it. Here’s a few reasons why.
Depreciation:
Your phone loses value over time, usually at a rate of 2% per month, so your phone will have depreciated since you first bought it. The total depreciation amount will also be subtracted from the purchase price, and this will determine the final claim payout.
Example:
If you bought a phone for $800 before taxes and it gets lost or stolen after six months, here’s how depreciation would affect your payout:
The depreciation rate is 2% per month, so in 6 months, your phone’s value will have depreciated by 12% (2% × 6 months). That equals $96 ($800 × 12%), so your phone’s adjusted value is now $704 ($800 - $96).
Deductibles:
When filing a claim, you’ll need to pay a deductible. This could be a flat fee or a percentage of the phone’s depreciated value. For example, it could be $25 to 100, or 10%. The amount you’ll pay depends on the credit card you’re using.
Example:
If your phone’s depreciated value is $704, and the deductible is a flat fee of $50, you’ll pay $50 out-of-pocket. Alternatively, if the deductible is 10% of the phone’s value, you’ll pay $70.40 ($704 × 10%). This means your final reimbursement will be reduced by the deductible amount, whether it’s a fixed fee or percentage-based.
By reviewing your credit card’s policy, you can ensure you’re fully prepared to make the most of this benefit.
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How to make a mobile device insurance claim
Before making a mobile device insurance claim, it’s essential to review your policy details. As mentioned above, you may not be eligible for coverage if you’ve exceeded your claim limit or if your phone is second-hand, used for business, or has some other exclusion to it.
However, if you are eligible to make a claim, and your phone is lost or damaged, notify your cell phone provider within 48 hours. For stolen phones, you’ll also need to file a police report within seven days. And, of course, you should also contact your credit card provider as soon as possible—most policies give you up to 14 days to file a claim.
Which credit card offers the best mobile device insurance?
To make choosing the right card easier, here’s a quick comparison of the credit cards that offer mobile device insurance in Canada:
Credit Card | Max Coverage | Activation Period | Depreciation rate | Deductible | Notes |
$1,000 | 90 days from purchase or when second wireless bill is charged | 2% per month | $25-$100 based on purchase price | First card in Canada to offer mobile device insurance, with a deductible determined on a sliding scale based on your device's purchase price. | |
$1,000 | 30 days from purchase or first monthly statement | 2% per month | $25-$100 based on purchase price | Faster activation period compared to other cards. | |
$1,000 | Immediately after purchase (eligibility criteria apply) | 2% per month | 10% of depreciated phone value | Deductible is proportional to depreciation, making payouts slightly higher on older devices. | |
$1,000 | 30 days from purchase or first billing statement | 2% per month | $25-$100 based on purchase price | Covers loss, theft, accidental damage, and mechanical breakdown. | |
$1,000 | 30 days from purchase | 2% per month | 10% of depreciated phone value | Covers devices bought as gifts, but only the purchaser can file a claim. | |
$1,500 | 91 days from purchase | 2% per month | 10% of depreciated phone value | Offers the highest coverage on this list; allows only 1 claim per year or 2 claims in four years. | |
$1,000 | 60 days from purchase | 3% per month | $25-$100 based on purchase price | Features a higher depreciation rate, increasing out-of-pocket costs for claims. | |
$1,000 | 91 days from purchase or first payment | 2% per month | 10% of phone’s value post-depreciation | Coverage for accidental damage reimburses lower of repair or replacement costs; limited claims of 1 per year or 2 in 4 years. | |
$1,000 | 91 days post-purchase | 2% per month | 10% of depreciation value | Worldwide coverage for theft, loss, or accidental damage; automatic repair or replacement reimbursement. |
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Making the best choice for your mobile device insurance needs
Choosing the right credit card for mobile device insurance comes down to what matters most to you. Here's how to make the best decision based on your priorities:
- Want faster coverage? The Scotia Momentum Visa Infinite and Tangerine World Mastercard both activate coverage within 30 days of purchase or your first billing cycle, ensuring your phone is quickly protected.
- Concerned about higher claims? The RBC Avion Visa Infinite offers the most generous coverage at $1,500. It's ideal if you want added peace of mind for pricier devices or higher reimbursement potential.
- Need cost predictability? The Meridian Visa Infinite Cash Back Card features a fixed deductible between $25 and $100, making it easier for you to plan for out-of-pocket expenses in case of a claim.
Mobile device insurance is a valuable benefit that can save you from unexpected costs if your phone is lost, stolen, or damaged. By choosing the right credit card, you can enjoy peace of mind knowing your device is protected. Take the time to review your options and select the card that best aligns with your needs and lifestyle.
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