Home Credit Cards Amex NEW BENEFIT: Amex Adds Cell Phone Protection To Key Premium Cards

NEW BENEFIT: Amex Adds Cell Phone Protection To Key Premium Cards


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American Express has announced that it’s enhancing the value offered by a number of its premium cards by adding cell phone protection to the list of benefits that the cards offer. The new benefit will be available from next month and it comes with a nice little bonus that most other cell phone protection benefits (those provided by other card issuers) don’t offer.

The Cards Getting The New Benefit

Starting from 1 April 2021, all of the following cards will offer Amex’s new cell phone protection benefit:

The Platinum Cards issues in partnership with Charles Schwab, Morgan Stanley, Goldman Sachs, as well as the Centurion Card issued in partnership with Goldman Sachs, will all also offer the new cell phone protection benefit.

Amex Cell Phone Protection Benefit

Amex’s new cell phone protection benefit will be added to all the cards listed above on 1 April 2021.

Who Is Covered?

Eligible card members, holding an eligible card, with an eligible cellular wireless device are covered.

  • An eligible Card Member means the holder of an eligible card account in good standing who is a U.S. citizen or a legal resident of the U.S. or a U.S. territory, including the
    District of Columbia, American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, and the Northern Mariana Islands.
  • An eligible card account means all open and valid eligible accounts in good standing with a Card Member of a U.S. Issued American Express account listed above.
  • An eligible cellular wireless telephone is a cellular telephone associated with the primary line and additional or supplemental lines on the eligible person’s
    monthly billing statement from a cellular provider for the billing cycle preceding the month in which the theft or damage occurred.
  • “Eligible Person” means a person to whom an Eligible Card Account is issued from a Participating Organization who charges the monthly bill for an Eligible Cellular
    Wireless Telephone to an Eligible Card Account.

There are a number of (very specific) exceptions which you’ll find listed out on this benefits page.

What’s Covered?

  • Reimbursement for the actual cost to repair or replace a stolen or damaged eligible cell phone.
  • Damage to screens (e.g. a cracked screen) is included in the coverage.

How Much In The Coverage Worth?

  • The maximum liability is $800, per claim, per eligible card account.
  • Each claim is subject to a $50 deductible.
  • Coverage is limited to 2 claims per eligible card account per 12 month period.

The total cover available is, therefore, $1,600 per 12 month period with a maximum deductible of $100.

Thoughts

While it may seem a little churlish not to be gushing about how great it is to be given a new free benefit, I can’t help but notice that there’s both good news and bad news here.

The good news is that cracked screens will be covered by this cell phone protection benefit (most other credit card cell phone protection benefits don’t cover this) and that the maximum claim in a 12 month period is a sizeable $1,600 (most other credit card cell phone protection benefits cap the 12-month payout at between $1,000 and $1,500).

The bad news is that it doesn’t appear as if authorized user cards will offer this benefit (I’m waiting to hear back from Amex with confirmation that this is the case) and that the maximum claim for a single incident is $800. Considering how much some iPhones now cost (the iPhone 12 Pro costs over $1,200), and considering that the no-annual-fee Chase Freedom Flex Card also offers cover of up to $800 per single claim (albeit capped at $1,000 in a 12-month period), I’d expect credit cards that cost $495+/year to offer a bit more cover than what Amex has announced today.

It’s interesting to see that for once, there’s nothing in Amex’s terms and conditions that limits this benefit to cell phone bills linked to US wireless providers, and that’s very good news for ex-pats. From what I can see, as long as you’re a US citizen with an eligible card, you should be able to make the most of this cover wherever in the world your cell phone bill is issued.

I know that a lot of people currently use the excellent Ink Business Preferred Credit Card (review) to pay their cell phone bills (the card offers users 3 points/dollar on wireless purchases as well as cell phone protection), but while the Ink card’s coverage extends up to an impressive $1,800 per year, the maximum single claim is just $600 – will we now see people prepared to give up the 3 points/dollar for higher single claim coverage and screen damage coverage with one of the Amex premium cards? I may be tempted.

Lastly, I have to confess to wondering why Amex has decided not to offer cell phone protection on the Amex Gold Card (review) or the Amex Business Gold Card both of which cost at least as much as the Delta SkyMiles Platinum Card. This seems like an odd decision to make at a time when Amex is clearly keen to reinforce the Gold Card’s position in the market.

Obviously it’s nice to see a new benefit being added, but I can’t help but think that Amex has missed a good opportunity here. Rather than offering a one-shoe-fits-all benefit for all the cards that will be getting the cell phone benefit, Amex could have introduced a two-tier system – the truly premium cards (annual fees of $495+) could have been given coverage of $1,000 per incident up to $1,500 per year while the rest could have been given coverage of $800 per incident up to $1,200 per year.

To me, that would have made more sense. As it is, a no-annual-fee credit card (Chase Freedom Flex Card) continues to cover my iPhone to almost the same degree as my $550/year Platinum Card, and that makes it hard for me to get overly excited about Amex’s news today.

Bottom Line

From 1 April 2021, a variety of higher-end Amex cards will be offering cardholders cell phone protection as part of their benefits package. All the cards will offer cardholders up to $800 in cover per claim with a $50 deductible and a limit of 2 claims per eligible card account per 12 month period.

A Fantastic No Annual Fee Card

The Freedom Flex Credit Card is a no annual fee card from Chase and although it was only released in September 2020, it has quickly become a “must-have” credit card for fans of Chase’s Ultimate Rewards program. Fantastic earning rates, useful benefits, and no annual fee is always a winning combination.

Some Of The Great Earning Rates & Benefits:

  • 5% cash back (or 5 points/dollar) on:
    • Up to $1,500 of spending in quarterly revolving categories
    • Travel purchased through Chase’s travel portal
    • Lyft rides through March 2022
  • 3% cash back (or 3 points/dollar) on:
    • Dining (includes take-out and delivery)
    • Spending at drugstores
  • 1% cash back (or 1 point/dollar) on spending in all other categories
  • Complimentary cell phone protection

Click for more details on the Chase Freedom Flex Credit Card

Regarding Comments

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2 COMMENTS

  1. I hold the Delta Sky Miles Platinum American Express credit card & an Apple iPhone 12. How does this new benefit integrate with Apple Care?

    • AppleCare may be more comprehensive but it runs out (and your coverage depends on the AppleCare package you purchased). The cell phone cover from your credit card may be a little more limited but it’s available year after year.

      You’ll have to compare the details linked in the post above to the AppleCare package that you purchased to know more.

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