Costco extended warranty and your credit card: the best card for big Costco purchases

The Costco extended warranty and your credit card's coverage work as layers: Costco extends the manufacturer's warranty on TVs, projectors, major appliances and computers to 2 years, and the CIBC Costco Mastercard adds 90 days of purchase security and doubles the manufacturer's warranty by up to 1 extra year, per its certificate of insurance. The card only needs part of the price charged to it, and it offers 5.99% to 7.99% installment plans on Costco purchases. Whether the card's warranty adds anything depends on the item and its manufacturer's warranty, so check yours before you buy, and compare cards on our best cards for Costco page.

What warranty does Costco give on big purchases?

From Costco's Concierge Services page: Costco extends the manufacturer's warranty on televisions, projectors, major appliances and computers (not tablets) to 2 years from purchase when the manufacturer's is shorter, and gives free technical support on those products plus tablets, cameras and more. TVs and most electronics also have a 90-day return window; see which electronics have a 90-day limit.

Category guides cover what comes with each purchase: TVs, laptops, appliances and swing sets.

What does the CIBC Costco Mastercard add?

From the certificate of insurance shared by the CIBC Costco Mastercard and World Mastercard (effective July 1, 2025):

Purchases paid partly with your CIBC cash back certificate or the Executive reward still count. Items bought for a business are excluded on the personal card; the Business card's certificate covers them.

Do Costco's warranty and the card's warranty overlap?

Often, yes. The card doubles the manufacturer's warranty, and its certificate defines that as the written warranty from the manufacturer, not an extended warranty. Costco's 2-year extension isn't from the manufacturer, so in our reading:

So the card's warranty matters most on items Costco doesn't extend, and on electronics whose manufacturer already gives 2 years. Call the insurer (1 866 363-3338) to confirm coverage on a specific purchase.

What doesn't the card cover?

The certificate lists exclusions. Among those that matter at Costco:

• Items bought for business use (on the personal card)
• Cars, motorcycles, riding mowers, snow blowers, drones and e-bikes over $3,000
• Food, liquor and consumables such as perfume and paint
• Used, demo and most refurbished items
• Normal wear and tear, misuse and "mysterious disappearance"
• Laptops under mobile device insurance (they're covered by purchase security and extended warranty instead)

Purchase security and extended warranty pay only beyond your home or tenant insurance, and you must report a loss within 45 days and send a loss report within 90 days, with original receipts.

How should you pay for a big Costco purchase?

• Charge it to a card with purchase protection, at least partly: the CIBC Costco Mastercard earns 1% in the warehouse (2% on Costco.ca, on the first $8,000 a year) and adds the coverage above.
• If you need time to pay, a CIBC Pace It plan on an eligible Costco purchase costs 5.99% for 6 months, 6.99% for 12 or 7.99% for 24, with no installment fee, far less than the card's 21.75%; see what carrying a balance costs.
• Watch the price for 30 days: if it drops, ask for a price adjustment.
• Executive members earn their 2% reward on top; see how the rewards stack.

How does the CIBC card compare with other no-fee cards?

Tangerine's Money-Back Mastercard lists purchase assurance for 90 days and an extended warranty of up to 1 year, with a $60,000 lifetime maximum. BMO's CashBack Mastercard doubles the manufacturer's warranty up to 1 year and adds purchase security, but only when you charge the full purchase price, while CIBC needs only part of it on the card. For phones, CIBC and Tangerine both list mobile device insurance up to $1,000, but Tangerine needs the full cost on the card; see the full comparison.