Purchasing Applecare+ for my M1 MacBook Air

[Ammar666]

So this has been driving up the wall. I purchased a yearly subscription of Applecare+ for my M1 MacBook Air using a credit card on Apple's website. I've received the confirmation email and the extended warranty is now active and showing up under coverage.

1. The coverage page is prompting me to 'finish setup' for Applecare, which redirects me to iTunes (Music app), which again asks me to finish setup (SS attached). When I click it, it's asking me to add a payment method to my account. I don't use CC for my iTunes purchases. I use gift card balance (although my account is currently out of balance). I don't want to use the CC I initially purchased to my iTunes payment method. What's the workaround for this? Why can't it use the gift card balance? And why does it need to use it now when I've already paid for the 12 months?
2. I purchased the plan today, so it's effective till Jan 8 2023. My question is, my existing warranty is already available till November 2022. So what exactly did I pay the $70 for? For an additional 2 months? Doesn't make sense.

 

[wilberforce]

The regular warranty does not cover damage like drops or spills

With AppleCare+, it does cover such damage, although there is a deductible.

 

[Landing]

Unsure if it covers water damage. 🤔

 

[telo123]

Unsure if it covers water damage. 🤔

It does. Water damage is under "accidental" damage as long as you pay the service fee (deductible).

Liquid damage to Mac computers and accessories not covered by warranty​

Damage to Mac computers and accessories due to liquid exposure is not covered by the Apple One (1) Year Limited Warranty or the AppleCare Protection Plan (APP). AppleCare+ for Mac adds up to two incidents of accidental damage protection every 12 months, each subject to a service fee plus applicable tax. Exclusions apply, please see AppleCare+ for Mac Terms and Conditions for details.

AppleCare Products - Mac - Apple (CA)