by Daniel | Last Updated Sept 22nd, 2021
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If you’re interested in finding a credit card that has great benefits and can provide you with free travel and cashback then this card might interest you.
In this blog post, I’m going to take a detailed look at the American Express Cobalt Card and see what it offers in terms of benefits and user perks, and how much it costs on an annual basis.
Who Is The Amex Cobalt Card Good For?
The first thing to take note of is that this card is specifically designed for the Canadian market, and I’m hoping that it may eventually become available on the US market as it has some pretty decent benefits.
Another interesting point is that it charges a monthly fee to use the card as opposed to charging a one-time fee for the entire year.
And I think this is actually a good thing, as getting a large bill straight away for a new card can sometimes be a bit of a shock, especially if you are new to credit cards.
Annual/Monthly Fee
So the cost of the card is not too bad, all up it will cost just over $155 annually, but unlike most other credit cards that I have seen, it actually charges you $12.99 on a monthly basis, which in my opinion is a great idea, as it reduces 1 larger payment up into 12 smaller payments.
Another thing worth noting is that you can actually get up to 9 additional cards without having to pay any annual fees, which is pretty good seeing as the Platinum Amex in Canada charges a $175 annual fee for each additional card.
It’s also worth noting that the annual interest rate on this card is 20.99% on Purchases and 21.99% on funds advances, so it’s super important to pay off your card as soon as you possibly can to avoid large fees.
Sign up Bonus
Now when it comes to a sign-up bonus the Amex Cobalt card does have a pretty decent offering.
It gives you the ability to earn up to a total of 50,000 Membership Rewards points, and these points can be transferred to statement credits at a value of 1,000 points for $10.
So the 50,000 rewards points can be worth up to $500, which easily covers the monthly fees of the card.
The points can also be redeemed on things like gift cards, movie tickets, and restaurants.
Or you can transfer the points at a ratio of 1:1 with a few different frequent flyer programs, and this can sometimes provide you with even more value than the previously mentioned options.
So to actually earn all of these points there are 2 separate things you will need to do.
For the first year of card membership, you can earn 2,500 Membership reward points for each monthly billing cycle as long as you spend at least $500, And if you are able to do this every month you will earn 30,000 points.
The second way to earn points is to spend $3,000 on the card within the first 3 months of card ownership, and this will provide you with 20,000 membership rewards.
So the bare minimum you can spend over the year and still receive all of the points is $7,500, which averages out to just over $144 per week.
Earning Points
Now earning points with the Amex Cobalt card is surprisingly good.
You can earn 5x points per dollar spent at either restaurants or food delivery services within Canada, and this is limited to a total spend of $30,000 annually.
You will also earn 3x points per dollar spent on streaming subscriptions within Canada.
Next up you will earn 2x points on travel, transit, and gas purchases within Canada.
And everything else will earn 1 point per dollar spent.
Now there is the possibility to earn 1 additional point per dollar spent if you make bookings through Amex Travel on eligible hotels or car rentals bookings.
Benefits and User Perks
Some of the perks that come with this card are also pretty decent.
First of all, you can receive up to $100 USD in hotel credit that can be used on amenities such as dining, spa, or other leisure facilities at over 600 hotels that are part of the American Express Hotel Collection.
And you can also get a room upgrade at check-in if it’s available.
Aside from this, there is also the Cobalt Perks Program that has frequent offers that can be quite rewarding if you take advantage of them.
Insurance-Related Benefits
Now when it comes to insurance, the Amex Cobalt card offers a ton of coverage.
So let’s start with all of the general coverage first and then continue on with all of the travel-related coverage after.
So first up you will get mobile device insurance which will cover any eligible mobile device as long as you purchase it on the card.
And it will cover up to $1,000 per insured person for theft, loss, or accidental damage anywhere in the world.
Next up you will receive a purchase protection plan that will give you 90 days of coverage on purchased items in the event of accidental damage or theft up to a total of $1,000 per occurrence.
There is a fraud protection guarantee that basically covers you in the event that your card is used for any fraudulent charges.
You also get an emergency Card replacement which is really handy, basically, if you lose your card or someone steals it, Amex will send you a new card.
And I’ve actually used this for my Platinum Amex before whilst I was traveling in Switzerland, and the new card arrived within 2 days, which I thought was pretty quick.
Travel Related Insurance
So now let’s continue on and look at all of the travel-related coverage that comes with this card.
To begin with, you will be covered by “out of province or country emergency medical insurance”
And this is an extremely useful benefit to have just in case something terrible happens whilst you are traveling.
Basically, it can provide coverage up to a maximum of $5,000,000 for eligible medical expenses incurred by an injured person who is under the age of 65 whilst traveling outside of your Canadian province or territory of residence for the first 15 consecutive days of a covered trip.
Next up you will get flight delay insurance that provides up to $500 in coverage when your flight is delayed by more than 4 hours and no alternative transportation is made available to you, and this money is available within 48 hours of the delay happening.
You will also receive baggage delay insurance which also covers up to a total of $500 if your checked-in luggage on an outbound trip is delayed by more than 6 hours.
There is also lost or stolen baggage insurance that covers up to a total of $5000 per trip if your carry-on or checked-in luggage is lost or damaged during transit.
Next up you will receive car rental theft and damage insurance that will cover you if your car rental is damaged or stolen up to a total of $85,000, and the rental must be less than 48 days.
To take advantage of this offer you must decline the collision damage waiver that is offered to you by the car rental agency.
And finally, you will receive up to $250,000 for travel accident insurance, which covers you in the case of dismemberment or accidental death.
Final Thoughts of the Amex Cobalt Card
So what are my thoughts about the American Express Cobalt card?
I honestly think it is a really good card to have and considering the monthly fee of just $12.99 it’s relatively cheap.
Just the sign-up bonus easily covers the annual costs associated with this card, and with the points earning potential and all of the insurance-related coverage that comes with the card, I think it is definitely worth considering.
But Id love to know what you think of this card?
Do you think that it provides enough value for the $12.99 monthly fee?
And if not, what card would you recommend instead?