Are you looking for a Canadian credit card that offers great rewards and benefits? Look no further than the American Express Cobalt card. In this Amex Cobalt review, we’ll dive into the details of this popular travel credit card and help you decide if it’s the right choice for you.
Read on to find out why it’s made our list of the best travel credit cards in Canada for several years running.
Featured
4.5 Ratehub rated
Best for Groceries & dining
First year reward
based on spending $2,200/mo after $156 annual fee
- Earn rewards
1pt – 5pts / dollar spent
- Welcome bonus
15,000 bonus points (a $150 value)
- Perks
- Details
Perks of the American Express Cobalt® Card
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $250,000 | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $5,000,000 for first 15 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $85,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | $500; delays 4 hours or more | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | $500 per trip for all persons | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | $500; delays 6 hours or more | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Up to $1,000 for 90 days | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Up to $1,000 for 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Ratehub.ca’s 2023 Award Winner – Best Rewards Credit Card
- In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
- Earn 3X the points on eligible streaming subscriptions in Canada
- Earn 2X the points on eligible ride shares, transit & gas in Canada
- Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online
- Earn 1X point for every $1 in Card purchases everywhere else
- Enjoy access to hotel bookings, a room upgrade (when available), 12pm check-in and late check-out (when available), and up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events
- Access Front Of The Line® Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with American Express® Experiences
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment
Ratehub’s take
The American Express Cobalt is one of Canada’s best travel credit cards. If you’re looking for a versatile credit card that rewards both everyday spending and travel, the American Express Cobalt is an ideal choice. Cardholders can enjoy strong travel insurance, a generous welcome offer, and flexible point redemption options.
Pros
- Exceptional point earning: 5x the points on eligible restaurant and food delivery, 3x the points on eligible streaming services, 2x the points on travel and daily transit. The earning potential for restaurants and takeout is significantly higher than most other cards
- Flexible point redemption: Travelers can choose from three ways to use their points: points 1:1 to several valuable loyalty programs including Aeroplan, use the Fixed Points Program to simplify redemptions regardless of travel dates, or use points for statement credits at a rate of 1 point = 1 cent. Or, redeem Membership Rewards for travel, gift cards, merchandise, or purchases
- Exclusive access: Enjoy privileges such as Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- Comprehensive travel insurance: Benefit from a strong travel insurance package, including up to $5,000,000 in travel emergency medical
- No additional fee for authorized users: Add authorized users for no extra cost (an average fee of $30-50 on other comparable cards)
Cons
- Monthly fee: A monthly fee of $12.99 (totalling an annual fee of $156, which is higher than most other rewards cards)
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Travel insurance age limitations: The travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
- Lack of airport lounge access: Frequent travellers may be disappointed as this card does not offer access to airport lounges
Minimum credit score: 725 Minimum income: N/A Purchase interest: 21.99% Cash advance: 21.99% Balance transfer: N/A Eligibility requirements
Interest rates
FAQ
What does the Amex Cobalt travel insurance cover?
The American Express Cobalt card offers a range of travel insurance benefits, including travel accident insurance, emergency medical insurance, flight delay insurance, baggage delay insurance, lost or stolen baggage insurance, hotel burglary insurance, and rental car theft and damage insurance. These benefits provide coverage for various situations such as accidental damage, theft, costs of flight delays, baggage delays, and more. It’s important to review the terms and conditions of the insurance policy to understand the specific coverage details, limitations, and any activation requirements that may apply.
Are there any limitations to the travel insurance coverage provided by the American Express Cobalt card?
Yes, the travel insurance benefits provided by the American Express Cobalt card have certain limitations and exclusions. For example, the emergency medical insurance coverage may have limitations for pre-existing medical conditions. Additionally, some of the travel insurance benefits may require activation by charging the full cost of your trip or rental to your Cobalt card. Check the policy for any exclusions, requirements, or limitations related to the coverage.
Does the Amex Cobalt charge a foreign transaction fee?
Yes, the American Express Cobalt charges a 2.5% foreign transaction fee which is applied to purchases made in foreign currencies - on top of the currency exchange rate. While the Cobalt card has a number of other travel benefits, this is a downside because the cost can really add up if you are planning to use your card abroad - in which case you might want to consider a no foreign transaction fee credit card instead. If you’re planning to use your card more for everyday purchases and travel bookings from home, and you don’t mind getting out foreign cash or using a prepaid travel card, this might not be an issue for you.
How can I maximize Amex Cobalt rewards?
Use your Amex Cobalt card for everyday expenses that earn you a higher rate of points, such as grocery shopping, dining out, and transportation. This way, you can make the most out of your purchases and earn more rewards to be redeemed for various exciting options, such as travel, merchandise, or even statement credits on your account. You should also try to fully take advantage of the card’s welcome bonus. The welcome bonus is a limited-time offer provided to new cardholders, which allows them to earn a substantial amount of Amex rewards points by meeting specific spending requirements within a certain timeframe. If you have a big purchase or vacation coming up, try to charge it to your new Amex Cobalt card within the welcome offer window period to earn bonus points. Lastly, travel rewards tend to be the most valuable redemption options for Amex Cobalt rewards - especially when you transfer your points to other airline rewards programs. But you can also redeem points for statement credits to cover any purchase at a decent rate of 1 point = 1 cent. Figure out what you spend the most money on to make the right redemption choice for you.
What is the American Express Cobalt?
The American Express Cobalt is a credit card that offers the chance to earn a high number of Amex points through the Membership Rewards program, plus many added benefits and perks for its users. This card is designed for frequent travelers who want to earn points from dining out and entertainment/ streaming services.
Amex Cobalt benefits
The American Express Cobalt offers a range of benefits that make it a popular choice among credit card users. Some of the key benefits of the Amex Cobalt include:
- Rewards program: The Cobalt card offers a generous rewards program, with 5 points for every $1 spent on eligible eats and drinks, 2 points for every $1 spent on eligible travel and transit, and 1 point for every $1 spent on all other purchases.
- Welcome bonus: earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points. The welcome bonus can supercharge your rewards (on top of your everyday earnings) so you can earn enough points for things like free flights or hotel stays.
- Travel insurance: The Cobalt card offers a range of travel insurance benefits, including emergency medical insurance, trip interruption insurance, and car rental theft and damage insurance.
- Entertainment access: Cardholders can enjoy exclusive access to presale tickets and reserved seats for concerts, shows, and events.
Changes to membership program - October 2024
American Express has announced an upcoming change to the earning rate structure on the American Express Cobalt Card.
As of October 8, 2024, the card’s earning rate for travel purchases will be cut in half. The Cobalt previously earned 2 points for every $1.00 in travel purchases, it will now change to 1 point for every dollar spent. The earning of gas and transit points will remain unchanged.
Amex Cobalt travel insurance
Here are the specifics of the American Express Cobalt travel insurance coverage:
- Travel accident insurance: The Cobalt card offers travel accident insurance, which provides coverage in the event of accidental death or dismemberment while traveling on a common carrier.
- Emergency medical insurance: As mentioned earlier, the Cobalt card provides emergency medical insurance coverage for up to $5 million. This coverage includes expenses such as hospital stays, medical treatments, and emergency medical transportation.
- Flight delay insurance: If your flight is delayed for a specified period, the Cobalt card offers coverage for necessary expenses such as meals and accommodations.
- Baggage delay insurance: In case your baggage is delayed for a specified period, the Cobalt card provides coverage for essential items you may need to purchase during the delay.
- Lost or stolen baggage insurance: If your baggage is lost or stolen while traveling, the Cobalt card offers coverage for the value of the lost or stolen items.
- Hotel burglary insurance: The Cobalt card provides coverage for theft or damage to your personal belongings in a hotel room due to burglary.
- Rental car theft and damage insurance: When you rent a car using your Cobalt card, you are eligible for car rental theft and damage insurance. This coverage can protect you against theft or damage to the rental vehicle, up to the actual cash value of the vehicle.
It’s important to keep in mind the following limits to the travel insurance coverage:
- Pre-existing medical conditions: The emergency medical insurance coverage may have limitations for pre-existing medical conditions.
- Activation requirements: Some of the travel insurance benefits (flight delay, baggage, rental car and accident coverage) may require you to activate the coverage by charging the full cost of your trip or rental to your Cobalt card.
- Additional documentation: In the event of a claim, you may be required to provide supporting documentation, such as medical reports or police reports, to substantiate your claim. It’s important to keep all relevant documents and receipts related to your trip or rental.
Overall, the travel insurance benefits offered by the American Express Cobalt can provide valuable coverage and peace of mind for your travels. However, it’s crucial to review the specific terms and conditions of the insurance policy to understand the coverage details and any limitations that may apply.
Some standouts from the above table worth calling out include the fact the card offers $5 million in emergency travel medical coverage (versus the $1,000,000 typically offered by comparable cards), and its $85,000 in credit card rental car insurance (which is a notch higher than the standard $65,000 in coverage). The only real downside is its emergency medical insurance, which lasts for 15 consecutive days versus the 21 days provided by some other cards. The American Express Cobalt does not include trip interruption / cancellation insurance, which can cover the cost of a cancelled trip or delayed connecting flight.
- Read more about credit card travel insurance
How to apply for the American Express Cobalt
Amex Cobalt income requirement
For a premium travel card, the Amex Cobalt requirements for card approval are somewhat lenient. The Amex Cobalt has no specified annual income requirement, but you must be at least 18 years old and we recommend that you have a credit score of at least 725 to get approved.
Fees and interest rates
Annual fee
The American Express Cobalt has an annual fee of $155.88, which is charged at $12.99 monthly. This is lower than many other premium credit cards, and in exchange for the moderate fee you get a number of travel perks and the chance to earn rewards. There is no fee for additional cardholders, meaning you can boost your points earnings by giving a family member a card and earning points from their spending in addition to yours.
Interest rate
The Amex Cobalt charges a standard annual percentage rate of 21.99% for purchases (which is completely avoidable as long as you pay off your balance in full) and 21.99% for cash advances.
Unlike some other American Express Cards, the AMEX Cobalt is a conventional credit card and is not a charge card. So, just like any Visa or Mastercard, the Amex Cobalt comes with a credit limit and you’re not required to pay off your balance in full every month (though, again, it’s always better to do so to avoid interest charges).
Amex Cobalt foreign transaction fee
The Amex Cobalt charges a foreign transaction fee of 2.5% on top of the currency exchange rate charged when you make a purchase in foreign currency. Some other travel credit cards waive foreign transaction fees so you can use your card abroad without paying extra.
How to maximize your Amex Cobalt rewards
To get the most out of your American Express Cobalt card, it’s important to understand how to maximize your rewards. Here are some tips to help you earn and redeem points effectively:
- Use the card for everyday purchases: The Cobalt card offers 5 points for every $1 spent on eligible eats and drinks, including food delivery, so be sure to use it for your daily coffee runs and restaurant meals. You will earn points on the first $2,500 spent in this category every month, and then points reset the next month.
- Take advantage of the welcome bonus: To earn the full welcome bonus in the first year, make sure to spend $750 in purchases on your card each month until you reach the maximum points earnings (15,000).
- Redeem points for travel: The Cobalt card offers the most value when redeemed for travel, and you have many ways to do so. You can use your points to book flights through the American Express travel portal using the Fixed Points Travel program, which simplifies redemption values and gives you a set number of points you need to redeem based on your destination and maximum ticket price. Alternatively, you can book flights, hotels, car rentals, and more through the Flexible Points Travel program where 1 point always equals 1 cent (1,000 Membership Rewars =.
- Transfer points to airline and hotel partners: The Cobalt card allows you to transfer your points to a variety of airline and hotel loyalty programs, such as Marriott Bonvoy and Aeroplan. This can often provide even more value for your points.
- Take advantage of special offers: American Express often offers special promotions and offers for Cobalt cardholders, such as bonus points for specific purchases or discounts on travel bookings. Keep an eye out for these opportunities to earn even more rewards.
Real-life examples of the American Express Cobalt rewards
To give you a better idea of how the American Express Cobalt rewards can benefit you, here are some real-life examples of how cardholders have used their Amex rewards points:
- Dining out: An Amex Cobalt cardholder who frequently dines out and spends $500 per month on eligible eats and drinks could earn 30,000 bonus points in the first year, which is equivalent to $300 in travel rewards.
- Travel: An Amex Cobalt cardholder who travels frequently and spends $1,000 per month on eligible travel and transit could earn 24,000 points in a year, which is equivalent to $240 in travel rewards.
- Entertainment: An Amex Cobalt cardholder who enjoys concerts and shows and spends $200 per month on tickets could earn 12,000 points in a year, which is equivalent to $120 in travel rewards.
Pros and cons of the American Express Cobalt card
Before deciding if the American Express Cobalt is the right credit card for you, it's important to consider the pros and cons.
Pros:
- The credit card offers a generous rewards program, which includes bonus points for everyday purchases. This means that customers can earn valuable rewards simply by using their card for their regular expenses, providing them with additional benefits and incentives.
- In addition to its rewards program and fee structure, this credit card provides travel insurance coverage, which applies to everything from travel expenses if your flight is delayed, to medical emergencies or rental car damage . This means that cardholders can enjoy the added security and peace of mind knowing that they are protected against unexpected medical events or losses during their travels without having to pay out of pocket for coverage. Keep in mind that you may have to charge part or all of the trip to your card to be eligible.
Cons:
- One drawback of this credit card is that it comes with an annual fee of 156, which is higher than some other cards, so you’ll have to be sure your points earnings outweigh the fee.
- As an American Express card, this credit card may not be widely accepted outside of Canada, which can limit its usability for international travelers or individuals who frequently make transactions in other countries.
- Lastly, while some other travel cards like the Scotiabank Passport Visa Infinite waive foreign transaction fees, the Amex Cobalt charges a standard 2.5% foreign transaction fee on top of the exchange rate for purchases in foreign currencies. If you’re planning to use your credit card while abroad, the costs can add up - although you will earn 1 point per $1 spent abroad, and you’ll earn an extra point for each dollar spent on bookings through Amex Travel.
The bottom line
The American Express Cobalt is a popular credit card for good reason. With its generous rewards program, travel benefits, and no foreign transaction fees, it's a great choice for frequent travelers and those who enjoy dining out and entertainment.
If you're considering the American Express Cobalt, be sure to weigh the pros and cons and think about how you can maximize your rewards. This card could deliver incredible value and assist in accomplishing your financial objectives.
Also read:
- The best credit cards in Canada
- Best American Express credit cards in Canada
- The best rewards credit cards in Canada
