We read the current insurance certificates for four popular cards and worked out how much coverage you get, where the limits bite, and when a paid plan adds anything.

The short answer

If you buy an item with a card that has extended warranty insurance, you usually get the manufacturer’s warranty doubled, up to one extra year, at no cost. A store plan only adds value for the time after that extra year ends, or for risks the card excludes. For a laptop with a 1-year warranty, your card may already cover year two. A 3-year store plan then really buys you year three.

The catch is the fine print. Some cards need the full price on the card, claim windows are short, and one card caps a claim at $1,000.

How much extra time your card adds

All four certificates follow the same basic rule. The extra time equals the length of the manufacturer’s warranty, up to a maximum of one year, and it starts the day the original warranty ends. RBC adds one more limit: the original and extended warranty together cannot go past five years.

Based on each certificate’s extension rule. CIBC and Simplii cover warranties over five years only if you register the item with the insurer within the first year. Wealthsimple covers manufacturer warranties of up to five years.

The four cards compared

The extra time is the same, but payment rules, claim limits and deadlines are not. Here is what each certificate says.

CIBC and Simplii limits are a combined maximum across all of that bank’s cards. RBC sets a $50,000 yearly limit for purchase security, but its certificate does not state a separate warranty limit.

Paying part of the price on the card

With CIBC and Simplii, only the part you charged to the card is covered. If you put $300 of a $1,000 TV on the card and paid the rest with a gift card, the most the insurer will pay is $300. With RBC and Wealthsimple, a split payment can mean no coverage at all.

The Wealthsimple $1,000 cap

Wealthsimple pays the lesser of the repair cost, the item’s actual cash value, the purchase price or your credit limit, up to $1,000 per claim. On a hypothetical $1,400 repair to a high-end TV in its second year, that leaves you paying at least $400. For items that cost under $1,000, the cap does not come into play, because the payout is already limited to the purchase price.

When a store plan can still make sense

A store protection plan has to earn its price in the time or risks your card does not cover. A simple break-even helps. Divide the plan price by the repair cost you expect. The result is how likely a covered breakdown needs to be for the plan to pay off.

Take a hypothetical laptop with a 1-year manufacturer’s warranty and a $250 plan that runs three years. Your card covers year two, so the plan only adds year three.

Hypothetical example. Break-even chance = plan price divided by repair cost. If the repair costs less than the plan, the plan cannot pay off on one repair.

Ask yourself whether there is really a 40% to 60% chance the item breaks in year three. For most electronics, you will not know that number. Without that number, a plan is hard to justify on price alone.

A plan can still be worth a look when:

• The item is expensive to repair and you rely on it daily, such as a work laptop, and the plan runs well past your card’s extra year.
• You need cover the card excludes. The certificates we read exclude normal wear and tear, and purchase security for accidental damage ends after 90 days. Read the store plan’s terms to see whether it covers either.
• You did not pay with an eligible card, or you split the payment on a card that needs the full price charged.
• The item is used or a demo. CIBC, Simplii and Wealthsimple exclude these.

Rules that can sink a claim

• Short notice windows. RBC asks for notice within 30 days of the claim arising. The others allow 45 days, with documents due within 90 days.
• Get approval before the repair. All four certificates say to contact the insurer before you book a repair. Paying a shop first can cost you the claim.
• Original receipts. CIBC and Simplii ask for original receipts, not photocopies. Keep the store receipt, the card statement and the warranty booklet together.
• The warranty must be valid here. RBC needs a manufacturer’s warranty that is valid in Canada. CIBC, Simplii and Wealthsimple accept one valid in Canada or the U.S.
• Common exclusions. Business use, motorized vehicles, and repairs the manufacturer’s warranty would not have covered.
• Other insurance comes first. CIBC, Simplii and Wealthsimple treat their cover as excess insurance, so file with your home or tenant insurer too if you have one.

Quebec buyers have extra protection

In Quebec, the Office de la protection du consommateur says goods bought from a merchant carry legal warranties. They must be fit for their purpose and last a reasonable time given the price and how you use them. Before offering an extended warranty, the merchant must read you a required statement about those legal warranties and tell you about any free manufacturer’s warranty.

Frequently asked questions

• Sources, checked October 25, 2026: CIBC Costco Mastercard certificate of insurance, effective July 1, 2025; Simplii Financial Cash Back Visa certificate of insurance, effective July 1, 2025; RBC Purchase Security and Extended Warranty certificate 03067 (11/2023), linked for the RBC ION Visa; Wealthsimple Visa Infinite certificate of insurance (Chubb), master policies updated June 1, 2026; Office de la protection du consommateur: legal warranties.
• Method: Extra time = the lesser of the manufacturer’s warranty or 12 months. For RBC, the original plus extra time is capped at five years. Break-even chance = plan price divided by repair cost. Calculated by script and checked with a second month-by-month method. Store plan prices and repair costs are hypothetical. Coverage terms vary by card and change over time, so read your own card’s certificate before you rely on it.

Important: This guide is general information, not financial or insurance advice. Card insurance is subject to the full terms of each certificate and master policy, which can change. Gizly is not paid by any card issuer named here, and this page has no affiliate links. See our affiliate disclosure.