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

In recent years, travelers have become more aware of the value of travel insurance, prompting questions about which policy to choose and whether you need it for every trip.

It’s tempting to select the convenient point-of-sale option, typically offered at checkout when purchasing a flight, but it usually provides limited coverage.

If you’re an eligible American Express cardholder, you can add Trip Cancel Guard when purchasing a flight via AmexTravel.com or within 30 days of booking a flight directly with the airline or a third party. The coverage protects your flight purchase if you need to cancel for any reason!

American Express is not new to travel insurance. In addition to issuing credit cards and offering other 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.

This guide explains how the coverage works, how it compares to other travel insurance, and what it costs. See when the American Express cancel-for-any-reason Trip Cancel Guard coverage is worth purchasing.

What Is American Express Trip Cancel Guard?

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

You can also purchase Trip Cancel Guard within 30 days of the purchase date for reservations booked on other websites, including those made directly with the airline or through third-party travel providers. Coverage must be purchased at least 5 days before departure.

The coverage reimburses up to 75% of the nonrefundable, prepaid flight cost, including penalties and change fees. It also applies to airline credits or vouchers that are unavailable, forfeited, or expired. Coverage is applicable when your flight is canceled for any reason and is valid until 2 full calendar days before 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. Trip Cancel Guard is available only to eligible Amex U.S. consumer, small business, and corporate card members.

Bottom Line: Trip Cancel Guard is a cancel-for-any-reason coverage available at AmexTravel.com checkout that reimburses up to 75% of nonrefundable expenses incurred when canceling a flight booked via the portal (exclusions apply). 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

When you book a flight via AmexTravel.com online, you can purchase Trip Cancel Guard at checkout. The charge for the coverage at checkout is 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.

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 can be paid using your American Express card and/or Membership Rewards points. 

You can use Membership Rewards points to cover the entire cost of the flight and Trip Cancel Guard coverage. You can also use points to pay for part of the cost and use your American Express card for the remainder.

The full terms and conditions, as well as details of the coverage, are disclosed before the purchase is finalized.

If you booked your flight outside of AmexTravel.com, you can still add Trip Cancel Guard coverage up to 5 days before departure. Pay for your flight with your qualifying Amex card, head to the Trip Cancel Guard page, and provide your travel information to purchase coverage. If you add Trip Cancel Guard to a reservation made outside of AmexTravel.com, your coverage will cost approximately 10% of the total flight price.

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 typically 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 is generally be expensive, as it is based on the total trip cost, which can include lodging, flights, tours, ground transportation, and other expenses. While the trip must be insured to 100% of the total cost, reimbursement is generally limited to 50% to 75% of nonreimbursed expenses. If you’re unsure whether you’ll be able to afford the cancellation of an expensive trip, the coverage could be worth it.

By comparison, Trip Cancel Guard covers just flights — and only those booked with your American Express credit card or Membership Rewards points. The price is 8% to 10% of the total flight cost, allowing you to purchase coverage for the flight alone, not the entire trip, as you would do 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 more affordable when the flight cost is your primary concern. 

Trip Cancel Guard vs. American Express Card Travel Insurance

You may be wondering how Trip Cancel Guard coverage compares to the travel insurance that comes with your American Express credit card. Credit cards do not offer cancel-for-any-reason insurance. However, you will find a variation of the following types of coverage 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 is interrupted for a covered reason. Covered reasons for cancellation are limited but can include illness, your dwelling becoming uninhabitable, or legal obligations.
• Trip delay insurance: If your trip is delayed by more than a specified number of hours for a covered reason (typically 12 hours or overnight), you may be eligible for reimbursement of incidentals, lodging, or transportation costs.

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 provide more detailed information 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 typically does not include voluntary cancellation for nonqualifying events, whereas Trip Cancel Guard does. 

Trip Cancel Guard vs. Airline Cancellation Policies

Most airlines now offer flexible cancellation policies that issue a flight credit for the full value of your ticket if you cancel.

You may not need to purchase additional coverage that reimburses only 75% of the amount paid. However, if you are purchasing a basic economy or another restrictive, nonrefundable 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 with high 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 reimbursement for 75% of the flight’s total price once the credit expires, which could be better 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 reimbursement with Trip Cancel Guard until those credits expire or are forfeited.

Bottom Line: Trip Cancel Guard could make sense when you’re purchasing a restrictive flight fare, such as one with no changes or refunds, or one with 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 request documentation supporting the cancellation, including a statement of the amount of any voucher or reimbursement you may have received from the airline, as well as any fees you were charged for the cancellation.

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

Everything Else You Need To Know

Trip Cancel Guard can be added when purchasing a flight on Amex Travel, directly through the airline, or through a third-party travel provider. The coverage remains active from the time of purchase until you cancel it, submit a claim, or reach the 2-day limit before your flight departure.

Coverage is secondary to any reimbursement or travel vouchers or 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 have 15 days from the date of purchase to request a refund, provided you have not canceled your flight or submitted a claim for reimbursement. The request for a refund must also be made before coverage expires at the 2-day window before departure.

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

Final Thoughts

Trip Cancel Guard is coverage that can provide peace of mind if you’re worried about losing the money you spent on a flight that you didn’t take because of 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 offer peace of mind, letting you book a flight and cancel without worrying about losing your entire investment or accepting an airline credit you may not be able to use.

Additionally, some airlines still charge change fees if you need to cancel your trip voluntarily. For example, unforeseen circumstances meant I recently had to cancel a Scandinavian Airlines flight to Europe at a highly discounted rate of around $600, which came with a $300 change fee. The cost to purchase Trip Cancel Guard would have been $48. When I canceled, I received a voucher for future travel worth $600, but I would still have to pay a $300 change fee to rebook. Had I held Trip Cancel Guard, I could have waited for that voucher to expire and then submitted a claim to receive 75% of my flight cost ($450) reimbursed, a net loss of just $198 ($150 plus $48) versus the $300 loss I incurred.

American Express now offers cardmembers an additional way to protect the value of flight purchases. It may only be useful in certain situations, but having another form of protection can be helpful.