As wireless handset costs rise, American Express is throwing in insurance coverage for phone repair or replacement on top-tier rewards cards as another way to get upscale travel-and-entertainment customers to stick around as the pandemic drags on.
Beginning April 1, Amex will reimburse certain card customers up to $1,200 a year for two incidents of broken, stolen or lost cellphones, Amex said in a Monday press release. A $50 deductible applies to each incident.
Twenty-seven percent of millennials reported damage to their cellphone since the start of the pandemic, and 36% of said they would rather give up showering than be without their cellphone, Amex said, citing a study by Trendex.
Complimentary cellphone insurance is available only with the Centurion and certain of Amex’s Platinum-level cards, and customers must list the affected cellphone’s number on the account and pay the monthly bill with that card.
The deal underscores Amex’s efforts to retain top-tier card customers despite the collapse of opportunities to earn and redeem typical travel and entertainment rewards during the pandemic. Amex began
The cellphone insurance deal’s restrictions also speak to Amex’s desire to have customers use these cards for purchasing and maintaining mobile phones, which increasingly are the primary connection to consumers' digital wallets.
Separately, Amex in late February added new offers for U.S. corporate card customers who also apply for an Amex personal card. Customers who apply for a personal card through April 21 qualify for statement credits ranging from $50 to $150, with the opportunity to earn bonus rewards points upon signup.
