Is the American Express Cancel for Any Reason Coverage Worth It? (2024)

During the past few years, it’s safe to say that as travelers we’ve become more aware of the importance of securing travel insurance. This new awareness of the importance of travel insurance has also created questions as to which is the best travel insurance to purchase and whether we need it for any given trip.

We may be tempted to select the convenient point-of-sale option, normally offered at checkout when we’re purchasing a flight, though the option provides limited coverage.

If you’re an American Express cardholder, you’ll now have the option when purchasing a flight via AmexTravel.com to add coverage that protects your flight purchase if you need to cancel your flight for any reason!

American Express is not new to travel insurance. In addition to issuing credit cards and offering other important financial products, the financial institution has long been a provider of travel insurance via American Express Travel Insurance.

The addition of American Express Trip Cancel Guard coverage addresses travelers’ concerns about protecting their flight purchases while simplifying the process of securing the coverage.

Today we’re going to look at how the coverage works, how it compares to other travel insurance, and what you can expect to pay for the coverage.

Join us as we explore the American Express cancel-for-any-reason Trip Cancel Guard coverage and find out if it’s worth purchasing.

What Is American Express Trip Cancel Guard?

Trip Cancel Guard is a coverage you can add when purchasing flights via AmexTravel.comwhether paying with an American Express card, with Membership Rewards points using the Pay With Points option, or a combination of both.

The coverage provides for reimbursem*nt of up to 75% of the cost of the non-refundable prepaid flight expense, penalty and change fees caused by the cancellation, or the amount of any expired vouchers/flight credits received for the canceled flight. Coverage is applicable when your flight is canceled for any reason and is valid until 2 full calendar days prior to your trip’s originally scheduled departure date.

Since Trip Cancel Guard is not insurance, you can purchase it in addition to a travel insurance policy.

Bottom Line: Trip Cancel Guard is a cancel-for-any-reason coverage, available at AmexTravel.com checkout, that provides for reimbursem*nt of up to 75% of non-refundable expenses incurred when canceling a flight booked via the portal. The flight must be paid for with an American Express card, Membership Rewards points, or a combination of both.

How To Purchase Trip Cancel Guard Coverage

Is the American Express Cancel for Any Reason Coverage Worth It? (1)

When you book a flight via AmexTravel.com online, you’ll have the opportunity to select the Trip Cancel Guard option at checkout. The charge for the coverage is calculated at 8% of the total price of the flight. In the above example, the flight price was $952.25. The Trip Cancel Guard cost of $76.18 could be added to the flight price.

You can use Membership Rewards points to pay for the entire flight + the Trip Cancel Guard coverage, or just a portion of the cost, then use your American Express card for the remainder.

The full terms and conditions and details of the coverage will be disclosed prior to finalizing the purchase.

Bottom Line: Trip Cancel Guard can be added at checkout when you purchase a flight via AmexTravel.com. The cost is 8% of the total flight price and, when added to the flight cost, can be paid using your American Express card and/or Membership Rewards points.

Trip Cancel Guard vs. Cancel for Any Reason Insurance

You can purchase Cancel for Any Reason Insurance (CFAR) for most trips as an add-on to travel insurance policies secured via a travel insurance company. The timing of purchasing Cancel for Any Reason Insurance is normally limited to 14 days (or a similar duration) after your first trip deposit, and there are limits on the amount of coverage you can purchase.

The coverage will generally be expensive as it is based on the total trip cost, which can include lodging, flights, tours, ground transportation, and more. While the trip must be insured to 100% of the total cost, reimbursem*nt is generally limited to 50% to 75% of non-reimbursed expenses. If you are uncertain as to whether you’re going to be able to take an expensive trip, the coverage could be worth it.

By comparison, Trip Cancel Guard covers just flights — and only those booked via AmexTravel.com with your American Express credit card and/or Membership Rewards points. The price is 8% of the total flight cost, allowing you to purchase coverage for the flight alone, not the entire trip as you would need to with CFAR.

Bottom Line: CFAR insurance must be purchased based on the total cost of your entire trip while Trip Cancel Guard covers just the flight, making it a more affordable option when the flight cost is your main concern.

Trip Cancel Guard vs. American Express Card Travel Insurance

Is the American Express Cancel for Any Reason Coverage Worth It? (2)

You may be wondering how Trip Cancel Guard coverage compares to the travel insurance that comes with your American Express credit card. First, credit cards do not offer cancel for any reason insurance, but you will find a variation of the following coverages on many American Express cards that could apply to flights:

  • Trip Cancellation and Trip Interruption — Provides coverage if your trip needs to be canceled or if your trip is interrupted for a covered reason. Covered reasons for cancellation are limited but can include events such as illness, your dwelling becoming inhabitable, or legal obligations.
  • Trip Delay Insurance — If your trip is delayed more than a specific number of hours for a covered reason, normally 12 hours or overnight, you could receive reimbursem*nt for eligible incidentals, lodging, or transportation.

Neither Trip Cancel Guard nor the insurance that comes with your American Express credit card offers medical insurance. If this coverage is a priority, you’ll want to purchase medical travel insurance separately.

If you want to learn more about the travel insurance coverage that comes with credit cards offered by American Express, we go into much more detail in our article on the topic.

Bottom Line: Travel insurance that comes with your American Express credit card does not include Cancel for Any Reason Insurance. While you may find trip cancellation, trip interruption, and trip delay insurance on several American Express cards, covered events are limited to those listed in the Guide to Benefits. Additionally, trip cancellation coverage will not include voluntary cancellation for a non-qualifying event, while Trip Cancel Guard does.

Trip Cancel Guard vs. Airline Cancellation Policies

Most airlines now have flexible cancellation policies that allow you to receive a flight credit for future travel, for the full amount of your ticket, if you need to cancel a flight for any reason.

You may not need to purchase additional coverage that provides reimbursem*nt for just 75% of the amount paid. However, if you are purchasing a basic economy or another restrictive non-refundable fare that does not provide for a future travel credit or refund, Trip Cancel Guard might be a viable option. You may also prefer receiving 75% of your money refunded versus any travel credit issued by the airline.

Trip Cancel Guard could also make sense if you’re purchasing a flight that comes with heavy change fees. If you need to cancel the flight, you may have to pay a fee to rebook using the airline credit. Having coverage would allow you to submit a reimbursem*nt for 75% of the total price of the flight once the credit expires which could be a better option than paying the change fee at rebooking.

If an airline does issue you a travel voucher or flight credit when you cancel your flight, you will not be able to submit a request for reimbursem*nt with Trip Cancel Guard until those credits expire or are forfeited.

Bottom Line: Trip Cancel Guard could make sense when purchasing a flight fare that is restrictive including those with no changes, refunds, or fares that involve high change fees.

Submitting a Claim

Submit a claim after canceling your flight by completing a claim application online or by calling 800-228-6855. You must submit the claim within 30 days of canceling your flight or “as soon as reasonably possible.”

The benefits administrator will ask for documentation supporting the cancellation including a statement regarding the amount of any voucher or reimbursem*nt you may have received from the airline plus any fees you were charged for the cancellation.

If you have received a voucher/credit from the airline, your claim will not be valid until said voucher/credit has expired or forfeited.

Everything Else You Need To Know

Trip Cancel Guard must be purchased at the time of booking and cannot be added on later. The coverage remains active from the time of purchase until you cancel it, submit a claim, or until you reach the 2-day limit prior to your flight departure.

Coverage is secondary to any reimbursem*nt or travel vouchers/flight credits received from the airline when you cancel your flight. If you receive a travel voucher from the airline, Trip Cancel Guard may apply once the voucher has expired.

If you purchase Trip Cancel Guard and change your mind, you will have 14 days from the date of purchase to request a refund, provided you have not canceled your flight or submitted a claim for reimbursem*nt. The request for a refund must also be made before coverage expires at the 2-day window prior to departure.

If you change your flight, you must notify the benefits administrator to determine new flight eligibility and re-apply coverage to the new flight.

Final Thoughts

Trip Cancel Guard is a coverage that can provide peace of mind if you’re worried about losing the money you spent on a flight due to a voluntary cancellation. Perhaps you take just 1 major trip each year and don’t want to receive a flight credit should you need to cancel. Receiving 75% of the cost of your flight back in cash may be more desirable to you in this situation.

For those with health issues, Trip Cancel Guard may provide comfort in knowing you can book a flight and cancel with not having to worry about losing your entire investment or having to accept an airline credit you may not be able to use.

Also, there are some airlines that still charge change fees if you need to cancel voluntarily. Due to unforeseen circ*mstances, I recently had to cancel a Scandinavian Airlines highly-discounted flight to Europe that cost around $600 but came with a $300 change fee. The cost to purchase Trip Cancel Guard would have been $48. At cancellation, I received a voucher for future travel for $600 but would have to pay the $300 change fee to rebook. With Trip Cancel Guard, I could have waited until the voucher expired and submitted a claim to receive 75% of my flight cost ($450) reimbursed, a net loss of just $198 ($150 + $48) vs. $300.

Kudos to American Express for giving cardmembers an additional choice for protecting the value of flight investments. While the option may be useful in limited situations, it’s always good to have choices.

Is the American Express Cancel for Any Reason Coverage Worth It? (2024)

FAQs

Is cancel for any reason coverage worth it? ›

Most basic travel insurance policies only cover cancellations under certain circ*mstances. Cancel For Any Reason add-ons let you do just that, but they can be pricey. It might make sense if you have uncertain plans and can't book refundable tickets or fares.

Does American Express have cancel for any reason travel insurance? ›

Trip Cancel Guard is an optional add-on benefit available for certain travel itineraries booked through American Express TRS that allows You to receive reimbursem*nt when You cancel Your trip for any reason at least two (2) full calendar days before Your Departure Date and before the Benefit End Date, as defined by the ...

Does cancelling Amex hurt credit score? ›

Closing a charge card won't affect your credit history (history is a factor in your overall credit score). Closing a credit card could hurt your credit score by increasing your credit utilization if you don't pay off all your balances.

Is travel insurance really worth it? ›

Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.

What is the difference between trip cancellation and cancel for any reason? ›

Unlike trip cancellation coverage, the optional travel insurance cancel for any reason benefit (CFAR) offers partial reimbursem*nt on prepaid, nonrefundable costs if you cancel for any reason, even those not typically covered by your comprehensive travel insurance policy.

Is a Cancelled insurance policy bad? ›

If your auto insurance policy has been canceled, it may be more difficult to purchase a new policy. Having a lapse in coverage may cause some carriers to view you as a high-risk driver, meaning you're more likely to miss payments, have claims, or receive violations.

Do American Express card holders get free travel insurance? ›

Your American Express® Card may include complimentary domestic and international Travel Insurance, as well as retail insurances like Card Refund and Purchase Cover, and/or Smartphone Screen Cover. Terms, conditions and exclusions apply (such as maximum age limits, pre-existing medical conditions and cover limits).

Does Amex travel insurance cover sickness? ›

1. Accidental Bodily Injury or loss of life or Sickness of either the Eligible Traveler, Traveling Companion or a Family Member of the Eligible Traveler or Traveling Companion; 2. Inclement weather, which prevents a reasonable and prudent person from traveling or continuing on a Covered Trip; 3.

Does Amex Platinum cover missed flights? ›

The Travel Inconvenience Insurance Plan provides benefits in the event of: Missed Departures and Missed Connections; delay, cancellation or overbooked flights; and Luggage Delay and Extended Luggage Delay when the Covered Trip is purchased and charged to your American Express International Dollar Card (IDC).

Is it bad to cancel an Amex card? ›

But it's important to understand that, for the most part, there are two key ways that closing a credit card could negatively affect your credit score: By reducing your total available credit limit, which can ultimately increase your credit utilization ratio, a factor that makes up 30% of your FICO score.

Is it better to cancel unused credit cards or keep them? ›

Canceling a credit card will cause a direct hit to your credit score, so more often than not, you'll want to keep the account open. Correctly managing an open, rarely-used account may require some extra attention, but the added effort will help your credit in the long run.

How many credit cards are too many? ›

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

What are two disadvantages of travel insurance? ›

It can also be expensive, difficult to file claims, and not always cover the things you thought it would — or should.

Is it better to get single trip or annual travel insurance? ›

This will depend on your situation, but if you are certain you will only travel once in the next 12 months, you should get a single trip policy for that holiday. If you are unsure of how many trips you will take, an annual policy may be more expensive, but it will give you the peace of mind of knowing you are covered.

What does travel insurance not cover? ›

Travelling against medical advice or to get medical treatment. If your doctor says it's not safe for you to travel, then you won't be covered. Similarly, if you go abroad to get planned treatment, sometimes called 'medical tourism', a standard policy will not cover this – you'll need specialist insurance instead.

What is the best reason to cancel an insurance policy? ›

Reasons to consider canceling your insurance policy:

You believe you're paying too much for insurance. Your business has changed, and you need different coverage. You're moving out of state, and your current insurer doesn't offer policies in your new location. You're unhappy with the service your insurer provides.

Is it bad to cancel an insurance claim? ›

Reasons to Cancel a Car Insurance Claim

Cancelling a claim may prevent your premium from increasing. The cost of the damage is less than your deductible. You will have to pay a deductible when you file a comprehensive or collision claim to cover damage to your vehicle.

How much extra is cancel for any reason travel insurance? ›

CFAR coverage is sold as an optional add-on to a comprehensive travel insurance policy. Expect to pay another 3% of your trip cost to get this coverage. CFAR typically covers up to 75% of nonrefundable expenses.

What is cancellation for any reason cover? ›

It's a feature that responds to unforeseen events that could prevent you from embarking on your trip, such as accidents, emergencies, or even bereavement. While most travel insurance policies include some level of cancellation cover, the extent of this cover can vary significantly between different insurers.

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