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Costco warranty protection: Not what it once was, but you can still get an extended warranty!

Costco used to offer two years of warranty protection on pretty much everything that you bought when you used Costco’s credit card. But Costco quietly removed this benefit, much to the dismay of consumers who find that they, in fact, don’t get a second year of warranty coverage when using the Costco Anywhere Visa® Card.

But you still can get credit card warranty coverage when you use a different card to shop at Costco. Here’s what you need to know about Costco warranty coverage.

Our recommendation: Use a card that offers free extended warranty coverage for Costco purchases

Since Costco’s own credit cards no longer offer an extended warranty benefit, you should use another Visa credit card that carries an extended warranty benefit for your purchases at Costco where you’d want extra warranty protection. Getting extended warranty coverage through your credit card comes at no cost to you and is as simple as charging the items to your card.

Here are our top choices of cards that are good to use at Costco and offer an extended warranty benefit:

  • The Chase Freedom Unlimited® offers 1.5% cash back on general purchases, including at Costco. The card has no annual fee and extends eligible warranties of 3 years and under by an additional year. It’s a great card to use everywhere and one of the best no annual fee cards for getting an extended warranty at Costco.
  • The U.S. Bank Altitude® Reserve Visa Infinite® Card offers an extra year of extended warranty protection on warranties of 3 years or less. The card also offers better cash back rewards than the Costco card: 3 points per dollar (worth 3% cash back or 4.5% travel rewards) when you pay with your mobile wallet.

Several other cards offer both better rewards and more benefits for Costco shoppers than the Costco credit cards. See our article on the best cards to use at Costco for more.

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Costco’s Citi credit cards no longer offer an extended warranty benefit

Costco used to heavily promote its co-branded credit cards as offering a total of two years of warranty coverage on most things you purchased at the store. The second year of warranty coverage on everything you purchased at the warehouse club used to be covered by American Express. When Citi became Costco’s credit card partner, Citi initially offered an extended warranty benefit on its Costco credit cards. This benefit was quietly removed from Costco’s Citi credit cards a few years ago. Unfortunately, many people still believe that you’ll get a second year of warranty coverage when using your Costco Citi credit card.

Today, the Citi-branded Costco cards do not offer an extended warranty benefit. This means that putting your Costco purchase on your Citi-branded Costco card won’t get you

What extended warranty coverage does Costco offer?

Costco offers two options for receiving warranty coverage. Some items receive additional warranty coverage for free through Costco Technical and Warranty services. And for some items, you can purchase additional warranty coverage through Allstate protection plans. Here are the details on both.

Costco Technical and Warranty Services: 2 year coverage for some items

Costco Technical and Warranty Services offers warranty coverage for up to 2 years on a limited selection of the things you might buy at Costco. For these items, you don’t need to purchase additional coverage or use the right credit card to get an extended warranty. Here’s what Costco Concierge Services covers:

  • Televisions.
  • Projectors.
  • Computers (excluding touchscreen tablets.)
  • Refrigerators (above 10 cubic feet.)
  • Freezers.
  • Ranges.
  • Cooktops.
  • Over-the-range microwaves.
  • Dishwashers.
  • Water heaters.
  • Washers.
  • Dryers.

This list includes most of the major household appliances Costco sells, but most other small appliances and other electronics receive no additional coverage from Costco. To receive warranty services from Costco Technical and Warranty Service, you can call their customer service call center at 1-866-861-0450.

Here’s the FAQ article where Costco outlines this coverage.

Allstate Protection Plans: Extra coverage available for purchase.

Costco has partnered with Allstate to offer additional insurance protection on items it sells. This is a paid insurance plan that comes at an additional cost. Prices vary, but you can expect to pay around 10% of your item’s purchase price for an Allstate protection plan. An Allstate plan provides coverage beyond what a manufacturer’s warranty covers and can also cover some cases where you accidentally break your item.

Allstate protection plans offered by Costco.

How much coverage you’ll get also varies by product, but Costco provides a few examples of what you can expect from purchased Allstate coverage.

  • Cameras and tablets can get 2 total year of protection, including coverage against accidents and mechanical failures due to normal use.
  • Computers can get 3 years of protection. Allstate also offers protection against accidents for computers.
  • Televisions get 5 years of total protection—the first 2 through Costco and the last 3 through Allstate. Coverage includes on-site service.
  • Appliances can get 5 years of protection, including the ability to choose your own service provider.

How to get a free credit card warranty on Costco purchases

Fortunately, you don’t need to purchase an expensive Allstate warranty through Costco to have your purchases protected by an extended warranty. Many of the best credit cards for Costco purchases offer an extended warranty and better rewards at Costco.

The U.S. Bank Altitude® Reserve Visa Infinite® Card offers both an extended warranty and better cash back rewards than the Costco-branded credit cards, but it carries an annual fee.

If you prefer an option with no annual fee, the Chase Freedom Unlimited® offers 1.5% cash back rewards that are almost as good as the Costco cards. For the 0.5% cash back rewards you’re giving up, you’re getting an extra year of warranty protection. If you consider the alternative of buying a warranty plan from Allstates, you’re effectively getting an extended warranty with a 95% discount.

For the best cards to use at Costco, see our article covering our favorite cards to use at Costco.

Frequently asked questions

Does the Costco credit card give an extra warranty?

No. Citi and Costco discontinued the extended warranty benefit on the Costco Anywhere Visa® Card and the Costco Anywhere Visa® Business Card around January 2023. You won’t get an extended warranty from the Costco credit card.

Can I use the Costco guarantee to get a warranty?

Costco is known for having a very generous return policy, so you may be able to get your money back from Costco if an item you purchase fails and you return it. This might be a viable alternative to an extended warranty, but be aware that Costco’s return policy does not apply to all items.

About the author

  • Aaron Hurd

    Aaron Hurd is a credit card, travel rewards, and loyalty program expert. Over the past 15 years, he has authored over a thousand expert contributions published by leading outlets including WSJ, TIME, Newsweek, Forbes, NerdWallet, The Points Guy, Bankrate, CNET, and many others. He has also served in consulting roles for many of these same outlets, designing content strategy, hiring teams of teams of editors and contributors, developing thought-leadership pieces, and ghost-editing for senior editors. Aaron is well-known in the miles and points community and regularly presents about travel rewards at conferences like the Chicago Seminars and Minnebar. Aaron has enjoyed the game of optimizing credit card rewards since getting his first credit card shortly after he turned 18. He started learning about credit cards and travel rewards from the (now defunct) FatWallet Finance forums and FlyerTalk. He holds more than 40 open credit cards and has first-hand experience with almost every major credit card product.

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