Costco Citi Extended Warranty - Worth It?

[MisterWives]

I'm planning on buying either an iPhone 12 or iPhone 12 Pro Max and was wondering if anyone has had any experience with using their Citi Costco Anywhere or any Citi credit card to get that Extended Warranty benefit(https://www.cardbenefits.citi.com/Products/Costco-Extended-Warranty.aspx). Which will provide +2 years of warranty coverage after the 1 year manufacturer warranty from Apple. 

1. So my question is has anyone utilized this Citi 2-Year Extended Warranty and did it work where they paid out the claim?

2. Then there is the other question and I am simply still deciding the best avenue of (Decided comment below):

• I wanted to go buy the phone at the Apple Store since they are unlikely trying to upsell me extra stuff at a Carrier Store(t-mobile,verizon,etc) or Costco or Best Buy. Should I then use my Citi Costco card at the Apple Store there to get the extra 2 Year Extended Warranty as it says nothing about you having to purchase the item from a Costco in order to receive the benefit?

Or

• Should I go to Costco and use my Chase Freedom card which right now has the rotated category of 5% for Wholesale Clubs, so at $1100+tax for the phone I would get around $55 in rewards which almost hits my cap of $75 for the quarter?

Or

• Put the cost on a 0% APR 18 months card and just use it to help show utilization?

Happy New Year's everyone!

[Loquat]

Even if you go with the Citi extended warranty, I would ask about tge process and turn around time of a claim.  

As much as I appreciate the card providers offering cell phone protection, the reason I still go with AppleCare is because if my phone has a covered issue then I can go to an Apple Store and have it fixed or replaced immediately versus filling out a form, have the damaged assessed by an authorized vendor, get the assessment back to the card provider, and then wait for a decision.

Seems like much to long of a process as I need my phone always.

[wasCB14]

https://www.apple.com/legal/warranty/products/ios-warranty-document-us.html

The warranty you're extending pretty much just covers manufacturing defects. You're far more likely to lose your phone or crack your screen by dropping it. Those may be covered by a card's purchase protection (which generally lasts only 90-120 days or so).

In practice, what they cover can be YMMV. I bought an electric string trimmer with an included battery charger at Home Depot and used a Citi card. The battery charger broke after the base warranty expired, leaving me with no way to charge the trimmer. Citi reimbursed my full purchase price.

I later discovered on my own that nominally, the base warranty did not cover accessories (like the battery charger). So Citi reimbursed me on something they technically did not have to.

Of course, on a small and unusual claim, the rep may not bother to read or strictly enforce the original manufacturer warranty. But I expect they get enough claims for broken phone screens and similar damage (resulting from arguably a poor design, but nothing that constitutes a "defect") that they may refuse to cover such damage.

[MisterWives]

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@wasCB14 wrote:

https://www.apple.com/legal/warranty/products/ios-warranty-document-us.html

The warranty you're extending pretty much just covers manufacturing defects. You're far more likely to lose your phone or crack your screen by dropping it. Those may be covered by a card's purchase protection (which generally lasts only 90-120 days or so).

In practice, what they cover can be YMMV. I bought an electric string trimmer with an included battery charger at Home Depot and used a Citi card. The battery charger broke after the base warranty expired, leaving me with no way to charge the trimmer. Citi reimbursed my full purchase price.

I later discovered on my own that nominally, the base warranty did not cover accessories (like the battery charger). So Citi reimbursed me on something they technically did not have to.

Of course, on a small and unusual claim, the rep may not bother to read or strictly enforce the original manufacturer warranty. But I expect they get enough claims for broken phone screens and similar damage (resulting from arguably a poor design, but nothing that constitutes a "defect") that they may refuse to cover such damage.

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That is true accidental damage is more likely to break the phone which isn't under the extended warranty and i'm sure if there was any manufacturing defects it would come up within the year and Apple would handle it hopefully. I would like to think if there is some software or hardware problem maybe the extended warranty will apply outside of just accidental damage and so it would be worth it, but I am uncertain a high priced item electronic won't have some pushback.

I will probably just go the Citi Costco route and buy at Costco along with getting an executive membership since that nets me 2%+2% = 4% back.

[wasCB14]

The limited warranty that comes with the iPhone is very weak by design. Don't expect much from it. Apple wants people to buy AppleCare (for an additional $200+).

[lhcole77]

I think extended warranties that come with CC are absolutely worth it.

And from my experience, it adds an additional 2 years onto the end AppleCare.

When I bought my Mac, I got a year standard and added AppleCare which pushed the warranty to December 2021. My card then added an additional 2 years onto that, extending it to December 2023. I used AMEX--they were extending additional 2 years then but have since reduced to 1. I confirmed with them prior to purchase that coverage would extend at end of AppleCare and they said yes.

I now used Citi on big purchases that need extended warranties. 

Haven't had to use any yet (fingers crossed). But I feel better knowing it's there.

[wasCB14]

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@lhcole77 wrote:

I think extended warranties that come with CC are absolutely worth it.

And from my experience, it adds an additional 2 years onto the end AppleCare.

When I bought my Mac, I got a year standard and added AppleCare which pushed the warranty to December 2021. My card then added an additional 2 years onto that, extending it to December 2023. I used AMEX--they were extending additional 2 years then but have since reduced to 1. I confirmed with them prior to purchase that coverage would extend at end of AppleCare and they said yes.

I now used Citi on big purchases that need extended warranties. 

Haven't had to use any yet (fingers crossed). But I feel better knowing it's there.

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But AppleCare isn't the Original Manufacturer Warranty. It's a Purchase Service Contract.

Amex may, in practice, cover things they don't absolutely have to as a goodwill gesture to a customer...but as I read the terms the EW only applies to the OMW.

Current EW on Amex Platinum: https://www.americanexpress.com/content/dam/amex/us/credit-cards/features-benefits/policies/NAC-Bene...

Page 4: "NO COVERAGE IS PROVIDED FOR: (CONTINUED) C. An Extended Warranty Covered Event that includes: 1. physical damage, including damage as a direct result of Natural Disaster or a power surge, except to the extent the Original Manufacturer’s Warranty covers such physical damage;"

The OMW doesn't cover most common damages (theft, loss, cracked screens, water damage, etc.) , so the EW isn't required to cover them either.

[lhcole77]

Sorry, @wasCB14 , I'm not following the gist your post.

Do you mind elaborating?

[wasCB14]

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@lhcole77 wrote:

Sorry, @wasCB14 , I'm not following the gist your post.

Do you mind elaborating?

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You said the Amex extended warranty adds one year (or two years, depending on the purchase date) to AppleCare. I do not believe that is correct.

From my understanding of Amex's and Apple's terms...

Apple offers two different types of protections:

1. A limited warranty (free and automatically included with the product purchase)

2. AppleCare (optional and costing ~$200 per device or so)

The limited warranty is a true product warranty. It just doesn't offer much protection against common problems like the screen cracking from being dropped. It only covers problems resulting from manufacturing defects. It is what Amex would call the Original Manufacturer's Warranty. This is what I believe Amex is extending.

But I do not believe AppleCare is a true warranty. I believe it is what Amex would call a Purchase Service Contract. I do not believe Amex is going to extend this because Amex's terms (at least as I understand them) say an Extended Warranty only applies to a true Original Manufacturer's Warranty and not to a Purchase Service Contract.

Again, there may be exceptions. Amex may do a favor for a customer who spends at least a moderate amount and rarely has any problems. But as far as I can tell, the warranty they are extending (the limited one-year warranty) is so unlikely to be useful (because it doesn't cover everyday problems, just manufacturing defects) that there's not much value in having Amex extend it from one year to two or three.

[lhcole77]

This is from Amex's T&C for EW. The way I read this is the extended warranty from Amex begins at the end of the AppleCare (aka Purchase Service Contract). I agree, the warranty extension from Amex is going to cover defects, hardware, etc. Not dropping your computer down the stairs, or throwing it out the window at your ex because they keep showing up begging you to come back and you're like, boy--bye. It won't cover that.

When does the Extended Warranty Coverage Period Start?

It begins after the longer of the Original Manufacturer’s Warranty coverage and/or Purchase Service Contract expiration.

What is an Original Manufacturer’s Warranty?

It is the express written full or limited warranty for defects in material and/or workmanship provided by the original manufacturer of the Covered Purchase and which is valid in the United States, District of Columbia or its territories or possessions.

What is a Purchase Service Contract?

It is a paid agreement to repair or replace an Extended Warranty Covered Purchase that is not the Original Manufacturer’s Warranty.