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Don’t Regret Paying for Your $1,000+ iPhone X (or ANY Device!) With the Wrong Credit Card

Don’t Regret Paying for Your $1,000+ iPhone X (or ANY Device!) With the Wrong Credit Card

Million Mile SecretsDon’t Regret Paying for Your $1,000+ iPhone X (or ANY Device!) With the Wrong Credit CardMillion Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Folks who enjoy having the latest tech gadgets might be thinking about purchasing the Apple iPhone X, which is available for pre-order starting October 27, 2017.  The phone comes with exciting new features, but also a hefty price tag.  You’ll pay $999 to $1,249, depending which model you purchase.

Because the phone is expensive, it’s a great idea to pay with a credit card that protects your purchase in case it’s damaged or stolen.

Certain credit cards come with up to $10,000 in coverage, which can go toward replacing, repairing, or reimbursing you.  And with these cards, you can earn cash back or miles & points for free travel.

Best Credit Cards With Cell Phone Insurance 2017
Paying for the $1,000+ iPhone X With the Right Card Can Save You Lots of Headaches Should You Experience Damage or Lose Your Device

If you’re planning to purchase the phone, it might also be a great time to consider a new credit card.  Because a $1,000 purchase can put a nice dent in the minimum spending required to unlock a lucrative sign-up bonus.

Purchase Protection Is Different From Cell Phone Insurance

Many premium credit cards come with a terrific purchase protection perk.  When you buy an item (like the iPhone X) and pay with the card, you’ll have coverage if it’s lost, stolen, or damaged.

This coverage isn’t the same as typical cell phone insurance, like AppleCare or T-Mobile Premium Device Protection.  Purchase protection is usually only good for up to 120 days following the date of your purchase.  But the advantage is you don’t have to pay monthly insurance premiums or a deductible in the event of a loss.

Also, keep in mind that purchase protection is only valid when you buy your phone outright.  So you won’t be eligible for this coverage if you’re paying for your phone in monthly installments.

Best Credit Cards With Cell Phone Insurance 2017
Damaging Your Phone Can Be a Costly Mistake! But When You Purchase Your Phone With Certain Credit Cards, You Can Get It Fixed or Replaced for Free!

It’s important to read the terms & conditions of your card’s purchase protection coverage.  For example, credit card purchase protection is usually supplemental (not always).  This means it only covers in excess of what your homeowner or rental insurance policies doesn’t pay.

That said, I think credit card purchase protection is still very valuable.  Because there are lots of instances when your primary insurance might not cover damage or theft, like when you lose your phone at a restaurant or bar.  So having credit card purchase protection might be your only way to recoup the loss, unless you have other 3rd-party insurance.

Shop for an iPhone X Using These Excellent Cards

Here are the top cards I’d recommend for folks looking to get purchase protection coverage when shopping for an iPhone X.

CoverageWhat's Covered?Coverage AmountLength of CoveragePrimary or SecondaryGuide to Benefits
The Platinum Card® from American Express• Theft, damage, or lost property• $10,000 for each
claim and up to $50,000 per calendar year
• 90 days from the date of your purchase• This coverage in excess of any valid and collectible insurance, such as
homeowner or rental insurance policies
AMEX Platinum Benefits Guide
Citi Prestige• Theft, damage, or lost property• $10,000 for each
claim and up to $50,000 per calendar year
• 120 days (90 days for New York residents) from the date of your purchase• This coverage is primary except for New York residents where
coverage is secondary.
Citi Prestige Benefits Guide
Chase Sapphire Reserve℠• Theft, damage, or lost property• $10,000 for each
claim and up to $50,000 per calendar year
• 120 days from the date of your purchase
• This coverage in excess of any valid and collectible insurance, such as
homeowner or rental insurance policies
Chase Sapphire Reserve Benefits Guide

The requirements to file a claim with each card are slightly different.  But you’ll typically have to include information such as:

  • Itemized receipt showing date of purchase
  • Proof of theft, damage, or loss
  • Repair estimate
  • Copy of declaration page from your rental or homeowners insurance policy (if applicable)
  • Documentation of any other settlement resulting from the loss (if applicable)

Here are the current offers for the 3 premium cards.

1.   AMEX Platinum

Link:   My Review of the AMEX Platinum Card

Besides having purchase protection when you shop the AMEX Platinum, the card comes with:

You can use the 60,000 point sign-up bonus to get $600 worth of gift cards through the AMEX portal.  But I typically don’t recommend using points this way.

Instead, you’ll likely get far more value when transfer points directly to airline and hotel partners like Delta Airlines for Big Travel with Small Money!

Best Credit Cards With Cell Phone Insurance 2017
You Can Use AMEX Membership Rewards to Enjoy the Magic of Paris!

2.   Chase Sapphire Reserve

Link:   Chase Sapphire Reserve

Link:   My Review of the Chase Sapphire Reserve

If you purchase the iPhone X with the Chase Sapphire Reserve, you’ll earn Chase Ultimate Rewards points, which are my favorite type of flexible points!

You can redeem these flexible points for:

And with the Sapphire Reserve, you’ll earn 50,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first 3 months from account opening.  The sign-up bonus is worth at least $500 in cash back or $750 toward travel through the Chase Ultimate Rewards travel portal.

Best Credit Cards With Cell Phone Insurance 2017
Road Trip? Use the Sapphire Reserve Sign-Up Bonus to Save $750 on a Car Rental When You Redeem Points Through the Chase Travel Portal

The Chase Sapphire Reserve card also comes with:

  • 3X Chase Ultimate Rewards points on travel & dining
  • Up to $300 statement credit for travel purchases (like airfare, Airbnb, hotels, car rental, Uber, etc.) each calendar year
  • Priority Pass Select for access to airport lounges
  • $100 statement credit for Global Entry
  • No foreign transaction fees
  • $450 annual fee

Keep in mind, this card is affected by Chase’s “5/24 rule.”

3.   Citi Prestige

Link:   Citi Prestige® Card

The Citi Prestige comes with the best purchase protection if you’re shopping for an iPhone X because the coverage is primary.  So you don’t have to file claims through any of your insurance policies to make use of this benefit.

The Citi Prestige card isn’t currently offering a sign-up bonus.  So I’d consider waiting to apply.  In the past, we’ve seen the card offer a 75,000-point sign-up bonus!

Citi ThankYou points are flexible because you can redeem points for travel through the Citi travel portal.  Or transfer points directly to airline and hotel partners like Hilton and Singapore Airlines.

Best Credit Cards With Cell Phone Insurance 2017
Transfer Flexible Citi ThankYou Points to Singapore Airlines and Be Sure to Stop for a Photo in Merlion Park!

With the Citi Prestige, you’ll also get:

  • 3 Citi ThankYou points per $1 you spend at airlines, hotels, and travel agencies
  • 2 Citi ThankYou points per $1 you spend at restaurants and select entertainment
  • $250 annual statement credit for airline fees such as airfare and baggage fees appearing on your statement from December to the following December
  • $100 statement credit for Global Entry application fee
  • Priority Pass Select membership
  • 4th night free when you book 4 consecutive nights at any hotel through the Citi ThankYou travel portal or Citi Prestige Concierge
  • No foreign transaction fees

This card has a $450 annual fee, but benefits like the 4th night free on paid hotel stays can easily offset the expense.

Skip Purchase Protection and Earn the Most Cash Back With These Cards

If you’re not interested in purchase protection or plan to pay your phone off over time, you might consider using these cards to earn the most cash back:

Note:   Once you hit the maximum spending in the bonus category for any of the above cards, you’ll earn 1% cash for purchases in excess of the limit.

You can get automatic cell phone insurance with the Ink Business Preferred if you use the card to pay your monthly bill.  But the coverage only includes up to $600 of protection against damage or theft after you pay a $100 deductible.  So you’ll get $500 back, which is only ~50% of the cost of the iPhone X.

Bottom Line

The new Apple iPhone X is available for pre-order starting October 27, 2017.  If you’re planning to purchase this $1,000+ device, I recommend paying with one of these cards:

These cards offer excellent purchase protection coverage.  So if your phone is damaged, lost, or stolen, you can get reimbursed or a replacement phone.  Keep in mind the coverage with each card is only valid for 90 to 120 days following your date of purchase.

And if you’re a new cardholder, spending $1,000 on one of the above premium cards can help you to meet minimum spending requirements to unlock lucrative sign-up bonuses, which you can then redeem for cash back or Big Travel!

Are you consider buying the new iPhone?

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The Platinum Card® from American Express

The Platinum Card® from American Express

  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Up to $200 for Uber rides annually. Credit and Uber VIP status available to Basic Card Member only.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards® points on eligible hotels booked on amextravel.com.
  • As a Platinum Card Member, you can enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Terms Apply | Rates & Fees

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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Check for shopping portal bonuses. Last month I bought an iPhone SE through the American Airlines portal when they were offering 7 AA miles per dollar spent at apple.com plus 2,000 miles for spending over $100. I used my Chase Sapphire card with price protection. When the price dropped $50 with the new phone announcement, I filed a claim and got a check for $50. No issues.

Apple’s latest products are never included for cash back portals if you check T&C.

Million Mile Secrets

Great tip! Some of the portals exclude new Apple products, but it’s definitely worth looking into. Thanks for sharing!

Other than the 5% cash back on the Chase Ink Cash, what other types of coverage/benefits does the Chase Ink Cash credit card have when purchasing a new iPhone.

Million Mile Secrets

For 120 days following your date of purchase, you’re covered in the event of damage or theft. You get up to $10,000 in coverage for each claim with up to $50,000 in coverage per calendar year.

Thank you for the quick reply, what am I missing here, it seems like the Chase Ink Cash is the best credit card to use when purchasing an iPhone, right?

Million Mile Secrets

For folks who like earning cash back, the Ink Cash might definitely be the best option. But the transferable points you earn with the other cards might be more valuable to folks looking to redeem rewards for travel.

Did Citi prestige and Chase Sapphire Reserve recently change their terms on purchase protection to cover lost? Can you provide more details?

Million Mile Secrets

I’m not aware of any recent changes. I’d recommend checking the complete guide to benefits for each card to see details. But the terms do say you’re covered if an item is lost.

While this is helpful information for the first few months after purchase, I think that Citi’s PriceRewind is compelling giving 3 months of protection for price drops (think through the holiday season and associated promotions – even 1 day promos). Additionally, some Citi cards extend warranty for 2 years. That means you’ll have 3 years of warranty on the phone. While it won’t cover theft/loss, it does likely mean that if something on the phone stops working (e.g. vibrate, screen, etc.) in years 2 or 3 that you can send in the phone and get the full cost reimbursed. I don’t think Citi’s price protection terms are as great as the cards you mentioned.

Million Mile Secrets

Good point about Citi’s Price Rewind. But keep in mind, there’s an exclusion for cell phone purchases if you purchase it with a service contract. I’d recommend reading the guide to benefits for complete details on the terms & conditions.