What is price protection insurance?

Co-author: Christine Thelander

We’ve all had that unlucky experience of committing to a big (or small) purchase and then finding the same product a few days later on sale for a fraction of what we paid for it.

What you may not realise is that there are insurance products that can sometimes refund you the difference in this special case of buyer’s remorse.

What is Price Protection Insurance?

Marketing tricks people into thinking their getting a bargainPrice Protection Insurance, or a Guaranteed Price Scheme, is a form of insurance that covers the difference in price if you purchase an item that is later advertised at a lower price.

This insurance is included for free on some credit card products, included for an additional fee with other paid insurances on other credit cards, and is also available for a premium as a paid option on its own.

What these policies all have in common is that they will pay the difference to your credit card account if you can show that a product has dropped in price after you bought it. However, the conditions of this insurance will vary between products.

For some cards, the price drop has to be at the same store or a retailer in the same chain, and for other cards, the lower price can be found at any store.

The difference in price is usually required to be a certain amount in order to be covered – more than $10 but less than $600 with some cards.

Generally, this type of insurance does not cover products purchased outside of New Zealand, and there are always annual limits on claims which vary from $2000 to $5000.

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Which Credit Cards Offer Price Protection Insurance?

Here are some personal credit cards offering this feature (at the time of writing) and a brief overview of the different conditions attached to each. Please note that terms, conditions and exclusions will apply to all programs:

Credit Card

BNZ Advantage Visa Platinum

OneCard Visa

Gem Visa

Policy Name PriceGuard Shopper’s Protection Shopper’s Protection
Min Price Difference No minimum price difference, but the minimum purchase amount is $150. $10 $10
Max Refund Up to $1,000 per occurrence with a maximum of $5,000 per BNZ Platinum Card per policy period. Each item is covered up to $600 and OneCard will pay a maximum of $2,000 for all items in any 12-month period. Each item is covered up to $600 and Gem will pay a maximum of $2,000 for all items in any 12-month period.
Same retailer only? No Yes Yes
Policy Cost Complimentary 1% of the monthly closing balance. Max monthly premium of $50. 1% of the monthly closing balance. Max monthly premium of $50.
Time Limit The advertisement of the lower price must be published within 30 days of your purchase, and you must contact BNZ within 14 days from the advertisement’s publication. 6 months 6 months
Source: Providers’ websites

Each card will have particular terms and conditions regarding which items are eligible and what evidence is necessary to prove this price difference, so be sure to thoroughly read the product disclosure statements thoroughly.

Compare Credit Cards

Choosing a Credit Card with Price Protection Insurance

The other conditions of Price Protection Insurance can vary a lot. Take a look at some of the current offerings available on Canstar’s database to find a credit card that suits your needs and spending habits.

If you’re considering signing up for a credit card that includes Price Protection Insurance, you may also want to consider Purchase Protection Insurance, which covers items purchased with your credit card against loss, theft, or accidental damage, usually for up to 6 months from the time of purchase.

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