The next time a pushy salesperson at the local electronics store tries to pressure you into spending hundreds of dollars on extended warranty plans, put your wallet away. That coverage is often a free benefit that many credit cards already provide.

Insurance for your new computer notebook against accidental damages or theft may be available through your credit card, too.

While you should check your cardholder agreement, most new cards issued in 2009 or later have these complimentary insurance features.

Free extended warranty protection
Credit card extended warranty protection offers an extra 12 months of coverage after the original manufacturer's warranty expires, provided that the basic warranty is valid in Canada.

Eligible charges under extended warranty plans depend on the specific manufacturer's warranty, but typically cover computer hard-drive crashes and other electrical or mechanical breakdowns. Accidental damages are almost always excluded.

If the manufacturer's warranty is for five years or longer, you may have to register your purchase with the credit card's insurer. That's a modest investment of time given that you might otherwise spend over 20 per cent of the item's purchase price on a retail extended warranty plan.

Most retail plans are non-transferrable, which means that only buyers can submit claims. When you use your credit card to buy gifts, recipients of those gifts can claim under your credit card's extended warranty.

Tip: Be sure to register the manufacturer's warranty and carefully file the product's serial number, manufacturer's warranty agreement, credit card receipt and statement.

Free purchase security coverage
Depending on an item's purchase price, insurance for accidental product damages or theft can also cost hundreds of dollars. Few Canadians are aware that free purchase security coverage may be provided for credit card purchases lost, stolen or accidentally damaged within 90 days of when they were first bought.

This free 90-day insurance even covers merchandise charged to your card when you're travelling outside Canada.

In addition, items that you buy on your credit card on behalf of family and friends are eligible for purchase security coverage. One client service representative at a major Canadian bank recently confided to CreditCards.ca that he uses his card to buy merchandise for his buddies so they can enjoy the free 90 days of accident and theft insurance.

Tip: Set an email calendar reminder on the expiry date for 90-day purchase security coverage; that way, you won't forget about the protection if you need to submit a claim.

Insurable credit card purchases
Popular items eligible for the above two free credit card benefits are cameras, computer products, plasma televisions, home theater systems and appliances from toasters to washers and dryers.

Specifically excluded are automobiles, motorcycles, motorboats and other motorized vehicles. High-dollar valuables such as artwork, precious metals and rare coins won't be covered either, nor will perishable items, event tickets or traveller's cheques.

There are other constraints. Only new items for personal purposes are eligible for free insurance coverage, and you must charge the full purchase amount to your credit card.

Tip: Credit card insurance claims may be reimbursed up to the full purchase price, including taxes.

How much can you save?
CreditCards.ca compared the free insurance benefits against the extended service plan from a major Canadian office supplier. That retailer charges $200 for a one-year extended warranty plan on a $1,000 laptop computer plus $150 for one-time accidental damage insurance.

You'll save $350 if you rely on the free credit card coverage instead, and that's just for one credit card transaction. Ten similar purchases would result in $3,500 worth of savings that you'd otherwise pay for individual extended warranty and accidental damage policies. You can use those savings to buy other products that will also be covered under your credit card.

Be sure to take advantage of your free credit card insurance benefits. After all, the price is right.

See related: The top 5 complaints against credit card balance insurance