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Credit Cards That Pay for Your Phone Bill, Phone Insurance, or Both
July 1, 2025
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Stop paying $180-$240 annually for carrier phone insurance. These 5 credit cards offer free protection up to $1,000 per claim—just for paying your phone bill.
Americans pay an average of $15-20 per month for carrier-based phone insurance through Verizon, AT&T, or T-Mobile. That's $180-240 annually for protection your credit card might already offer—completely free.
Here's what most people with $100-150/month phone bills don't realize: premium credit cards offer cell phone insurance covering damage, theft, and screen repairs up to $800-1,000 per claim with deductibles as low as $25. The only requirement? Pay your monthly wireless bill with the card.
Let's break down how this works, compare the top 5 cards for cell phone protection, and help you calculate whether you should cancel your carrier insurance and save hundreds per year.
What Is Credit Card Cell Phone Protection?
Credit card cell phone protection is an automated benefit that reimburses you when your phone is damaged or stolen—as long as you've paid your monthly wireless bill with the eligible card for that billing cycle.
What's covered:
- Physical damage (cracked screens, water damage, accidental drops)
- Theft (with police report required)
- Damage to multiple phones on family plans
What's NOT covered:
- Lost phones
- Cosmetic damage that doesn't affect functionality
- Unauthorized charges
- Phones purchased more than a certain time ago (varies by issuer)
Activation Requirements: You must charge your monthly cell phone bill to the eligible card to activate coverage for that month. Miss a payment or use a different card? You lose protection for that billing cycle.
Important Note: Credit card phone insurance is typically secondary coverage. If you have carrier insurance or AppleCare+, those policies pay out first, then your credit card covers remaining costs up to its limit.
The Math: Carrier Insurance vs. Credit Card Coverage
Before we dive into the best cards, let's do the math on what you're actually paying for phone protection.
Savings Calculation for $150/month Phone Bill Household:
If you're paying $19/month for carrier insurance and switch to free credit card coverage:
- Annual carrier insurance cost: $228
- Credit card protection cost: $0
- Annual savings: $228
Over 5 years: $1,140 saved
Even if you file one claim with a $50 deductible instead of carrier's $29 deductible, you're still saving $1,119 over five years. And many credit card deductibles are only $25—just $4 more than carrier insurance.
Top 5 Credit Cards with Phone Insurance & Bill Pay Rewards
1. American Express Platinum Card®
[[ SINGLE_CARD * {"id": "106", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Serious Points on Flights"} ]]
Why it stands out: Most cards exclude cosmetic damage, but Amex Platinum covers screen cracks even if your phone still functions. This is the only card that covers this common issue.
Best for: Premium travelers who want comprehensive phone protection plus elite travel benefits
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
2. Ink Business Preferred® Credit Card
[[ SINGLE_CARD * {"id": "1100", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Business Owners", "headerHint" : "Valuable Rewards" } ]]
Why it stands out: This card offers the highest coverage limit AND earns points on your phone bill—meaning you're getting paid to protect your phone.
Best for: Business owners or side hustlers who can qualify for a business card and want maximum coverage plus bonus rewards
All information about Ink Business Preferred® Credit Card has been collected independently by Kudos. Ink Business Preferred® Credit Card is no longer available through joinkudos.com.
3. Wells Fargo Active Cash® Card
[[ SINGLE_CARD * {"id": "2894", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "0 Annual Fee"} ]]
Why it stands out: No annual fee + cash back on phone bills + phone protection = triple value. The deductible is also the lowest among major issuers.
Best for: Anyone who wants phone protection without paying an annual fee, plus straightforward 2% cash back
4. Capital One Venture X Rewards Credit Card
[[ SINGLE_CARD * {"id": "2888", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Luxurious Travel Benefits" } ]]
Why it stands out: Premium travel card with phone protection plus an effective annual fee after annual travel credit.
Best for: Frequent travelers who want phone protection bundled with premium travel perks
5. Bilt Mastercard®
[[ SINGLE_CARD * {"id": "2990", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Renters", "headerHint" : "Rewards on Rent Payments" } ]]
Why it stands out: The only card that lets you earn rewards on rent AND offers phone protection. Perfect for renters who want to maximize rewards while protecting their devices.
Best for: Renters who want to earn rewards on rent while getting free phone protection
The information for the Bilt Mastercard® has been collected independently by Kudos. The Bilt Mastercard® is no longer available through Kudos.
How to Activate Cell Phone Protection
Step 1: Pay Your Phone Bill
Charge your complete monthly wireless bill to your eligible credit card. Coverage typically activates on the first day of the month following payment.
Step 2: Keep Documentation
Save receipts showing:
- Phone purchase (to prove ownership)
- Monthly phone bill payments
- Repair estimates or police reports (for claims)
Step 3: File a Claim Within 60-120 Days
Contact your card's benefit administrator (not the bank) within the specified timeframe. Most issuers give you 60-90 days to file.
Step 4: Submit Required Documents
- Proof of purchase for the phone
- Copy of monthly wireless bill showing the phone's number
- Repair estimate or police report (for theft)
- Damaged phone for inspection (sometimes required)
Step 5: Receive Reimbursement
If approved, you'll receive payment via check or direct deposit within 10-15 business days, minus the deductible.
Pro Tip: The Autopay Loophole
Many carriers offer $5-10/month discounts for autopay from a checking account. Here's how to get both the discount AND credit card protection:
- Set up autopay from your bank account
- Before the autopay date, pay your bill in full with your credit card
- On autopay day, the balance is $0, so nothing charges
- You keep the autopay discount AND activate phone protection
This works with most carriers including Verizon, AT&T, and T-Mobile. Verify with your specific carrier.
When Credit Card Phone Insurance Makes Sense
✅ Use credit card phone insurance if you:
- Have phones worth $400-1,500 (flagship models)
- Are comfortable with a $25-100 deductible
- Pay your phone bill monthly (not annually)
- Don't currently have AppleCare+ or carrier insurance
- Have multiple family members on your plan (all covered!)
❌ Keep carrier/manufacturer insurance if you:
- Have frequent phone damage/loss history
- Want coverage for lost phones (credit cards don't cover this)
- Prefer lower deductibles ($29 vs. $25-100)
- Need same-day replacements (carrier insurance ships faster)
Common Mistakes to Avoid
Mistake #1: Forgetting to Pay Your Bill with the Card
Miss one payment with a different card? You lose coverage for that month. Set up automatic payments to avoid this.
Mistake #2: Not Understanding "Secondary Coverage"
If you have AppleCare+, that pays first. Your credit card covers what's left. Example: $300 screen repair with $29 AppleCare+ deductible means your card covers $271 (minus card deductible).
Mistake #3: Filing Too Late
Most cards require claims within 60-90 days. Mark your calendar immediately after damage/theft.
Mistake #4: Canceling Manufacturer Warranty
Credit card protection is insurance, not a warranty. Keep your manufacturer warranty for defects—credit cards don't cover those.
Mistake #5: Not Reading the Fine Print
Some cards exclude:
- Pre-owned/refurbished phones
- Phones not purchased new
- Cosmetic damage (except Amex Platinum)
- Phones used for business (on personal cards)
Real-World Scenario: How Much You Actually Save
Meet Sarah: iPhone 15 Pro Max owner, $150/month family plan (4 lines)
Option A: AT&T Insurance
- Monthly cost: $19/line × 2 phones = $38/month
- Annual cost: $456
- Deductible per claim: $99-$149
Option B: Ink Business Preferred
- Monthly cost: $0
- Earn 3x points: $150 × 12 × 3% = $54 in rewards annually
- Deductible per claim: $100
- Coverage: Up to $1,000 per claim
Sarah's savings switching to credit card protection:
- Year 1: $456 saved + $54 earned = $510 value
- Year 5: $2,280 saved + $270 earned = $2,550 value
Even if Sarah files one claim with a $100 deductible vs. $99 carrier deductible, she's ahead $2,549 over five years.
How Kudos Helps You Maximize Phone Bill Rewards
Kudos automatically identifies which card earns the most rewards on your phone bill and tracks your cell phone protection benefits across all your cards.
With Kudos, you can:
- See which card offers the best phone protection for your needs
- Track when you've activated coverage each month
- Get reminders to use the right card for your phone bill
- Compare phone protection across all your cards in one place
Bottom Line
Paying $180-240 annually for carrier phone insurance doesn't make sense when credit cards offer free protection up to $1,000 per claim. The five cards above provide comprehensive coverage with reasonable deductibles—and three have no annual fee.
Quick recommendations:
- Best overall value: Wells Fargo Active Cash® Card
- Maximum coverage: Chase Ink Business Preferred® Credit Card
- Covers screen cracks: American Express Platinum Card®
- Best for renters: Bilt Mastercard®
- Best for travelers: Capital One Venture X Rewards Credit Card
Before canceling carrier insurance, verify you're comfortable with the higher deductible and 10-15 day claim processing time. For most people, the annual savings of $200+ makes credit card protection the smarter choice.
FAQ
Does credit card phone insurance cover lost phones?
No. Credit card protection covers theft (with police report) and damage, but not lost phones. If you frequently lose phones, keep carrier insurance.
Can I use credit card phone insurance if I have AppleCare+?
Yes, but your credit card coverage is secondary. AppleCare+ pays first, then your credit card covers remaining costs up to its limit minus the deductible.
Do I need to buy my phone with the credit card to get protection?
No. You only need to pay your monthly wireless bill with the card. The phone can be purchased anywhere, with any payment method.
How long does it take to get reimbursed?
Most card issuers process approved claims within 10-15 business days. Carrier insurance typically ships replacement phones within 24-48 hours.
Does protection cover all phones on my family plan?
Yes! As long as the phone numbers are listed on the monthly bill you pay with your card, all phones are covered.
What if I forget to pay my phone bill with the protected card one month?
You lose coverage for that billing cycle. Set up automatic payments to ensure consistent coverage.
Are business phones covered under personal credit cards?
Usually no. Business use typically requires a business credit card. Check your specific card's terms.
Can I file multiple claims in one year?
Yes, but there are limits. Most cards allow 2-3 claims per 12-month period, up to the annual maximum coverage amount.
Do I need a police report for theft claims?
Yes. All card issuers require a police report filed within 48 hours of discovering theft.
What's the difference between phone insurance and purchase protection?
Purchase protection covers new purchases for 90-120 days. Cell phone protection covers your phone indefinitely as long as you pay your bill with the card monthly.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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