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.

Here’s what you need to know about Costco warranty coverage.

What extended warranty coverage does Costco offer?

Here’s a quick overview of what warranty coverage you can expect from Costco and from Costco’s branded credit cards:

Costco-branded card: The Costco Anywhere Visa® Card does not offer extended warranty coverage of any kind. This benefit was quietly stripped from the card a few years after Costco switched its store-branded cards to Citibank.

Costco technical and warranty services: Costco extends the manufacturer’s warranty service on televisions, projectors, computers (excluding touchscreen tablets), and major appliances for up to 2 years from the date of purchase. Here’s the FAQ article where Costco outlines this coverage.

Allstate protection plans: For other items you purchase from Costco, Costco offers Allstate protection plans. Prices vary, but you can expect to pay around 10% of your item’s purchase price for an Allstate protection plan.

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. Here are our two favorites:

• 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.
• The Chase Freedom Unlimited® is a no-annual-fee card that will give you 1.5% cash back rewards at Costco (and elsewhere) and adds an extra year of warranty coverage on items you buy with a 3 year manufacturer’s warranty or less.

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.

No more warranty coverage from Costco credit cards

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. Citi no longer offers extended warranty protection on the co-branded cards issued in partnership with Costco.

Costco Warranty Coverage may be sufficient for some items

Costco Concierge Services only offers warranty coverage 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)
• Regrigerators (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.

Frequently asked questions