UK: Hugely detrimental changes to Platinum travel insurance from January 25, 2012
Dec 9, 2011, 12:53 am
#18
Join Date: Apr 2009
Location: South Oxfordshire
Programs: Yes please
Posts: 564
I downgraded to Platinum from the Centurion card when they tripled its fee last year. The only reason I stayed with Amex at all was for the travel insurance, but since then I have opened some HSBC Premier accounts and they also provide travel insurance (in my case, two different polices based in two countries) and I was wondering if it was still worth renewing my Platinum card when it comes up for renewal in February. This pretty well answers my question.
Dec 9, 2011, 3:18 am
#19
Join Date: Jun 2003
Location: London
Posts: 3,459
The changes render the policy useless, because for each trip you will have to check to see whether you are covered, or whether your supplementary cardholder is covered, and for some trips you will have to buy a separate insurance policy. It removes the peace of mind that an annual travel insurance policy is supposed to bring. Once you have to buy another insurance policy, then you may as well buy a single annual policy that does cover these situations, and not bother with the Amex.
I think it is worth contacting Amex and letting them know your views. I don't think they have thought this through very well. Sometimes they make mistakes; their attempt to charge BA Amex cardholders a retrospective annual fee was an obvious mistake and for which they were corrected by the regulator.
The point here is not that this is a devaluation of the insurance benefits, because they are bound to change over time, but that this effectively removes the annual travel insurance altogether. A simple increase in an excess, or a reduction in certain amounts of cover, would be far less objectionable.
I think it is worth contacting Amex and letting them know your views. I don't think they have thought this through very well. Sometimes they make mistakes; their attempt to charge BA Amex cardholders a retrospective annual fee was an obvious mistake and for which they were corrected by the regulator.
The point here is not that this is a devaluation of the insurance benefits, because they are bound to change over time, but that this effectively removes the annual travel insurance altogether. A simple increase in an excess, or a reduction in certain amounts of cover, would be far less objectionable.
Dec 9, 2011, 5:09 am
#22
Join Date: Nov 2002
Location: Here and there
Posts: 96
i got the letter today too. The excess and stuff is annoying, and having to put my travel purchases on here instead of my AA and UA cards (particularly my cards in the US), but I don't understand what the "massive devaluation" is ... when i use my card to book a trip, i'm covered. am I missing soemthign? what's annoying for me is for my parents having to reimburse me when they travel because they have to put through their purchases on the cards i gave them for cover.
Dec 9, 2011, 5:50 am
#23
Join Date: Oct 2007
Posts: 4,648
As I understand it, if you pay for your flights on a Plat or BA (Blue or PP) Amex you will still have the same medical and delay/cancellation cover as before, apart from the new £50 excess. So for the majority of UK-based card holders I really don't see much difference.
For me, the benefits of the travel insurance for myself, my wife, two sons and their partners and children, plus the Priority Pass x 2 is still reasonable value.
For me, the benefits of the travel insurance for myself, my wife, two sons and their partners and children, plus the Priority Pass x 2 is still reasonable value.
Dec 9, 2011, 5:56 am
#24
Join Date: Oct 2007
Posts: 4,648
I have not received the "insurance devaluation" letter yet, but I did receive another letter today titled "introducing the perfect companion to your platinum card". It is offering me a Platinum credit card with 3000 bonus MR points after spending £500 in the first 3 months.
Is it likely that this will count towards my maximum number of Amex cards (which would probably put me over the limit) or will it and the Plat charge card count as one?
Is it likely that this will count towards my maximum number of Amex cards (which would probably put me over the limit) or will it and the Plat charge card count as one?
Dec 9, 2011, 6:26 am
#25
Join Date: Sep 2010
Programs: BMI, BA, Aegean Airlines
Posts: 61
I have not received the "insurance devaluation" letter yet, but I did receive another letter today titled "introducing the perfect companion to your platinum card". It is offering me a Platinum credit card with 3000 bonus MR points after spending £500 in the first 3 months.
Is it likely that this will count towards my maximum number of Amex cards (which would probably put me over the limit) or will it and the Plat charge card count as one?
Is it likely that this will count towards my maximum number of Amex cards (which would probably put me over the limit) or will it and the Plat charge card count as one?
Dec 9, 2011, 7:50 am
#26
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London and Zurich
Programs: AA, BA, Mucci: Sir Roger des Directions Routières, PCR
Posts: 13,609
For starters:
- the upper age limit for medical cover is reduced to 70 - this alone requires a separate policy for those who want to retain medical cover;
- non-sterling purchases cost an additional 3% (OK, then 2.99%) and some of us use other cards with 0% loading. If we want foreign expenditure to be covered, we pay 3% more;
- travel and/or hotels paid for completely with points are not covered.
We will no longer have the peace of mind coverage currently offered by the AmEx card and will need to check each time which components of our trips are covered and which are not.
If AmEx were to offer 0% loading to their UK clients as they do to their US plat and Centurion customers, that would help alleviate the devaluation.
Dec 9, 2011, 8:02 am
#27
Join Date: Jun 2003
Location: London
Posts: 3,459
If the changes don't affect you, fine. Olly was good enough to scan the letter, so it's all explained there.
For starters:
We will no longer have the peace of mind coverage currently offered by the AmEx card and will need to check each time which components of our trips are covered and which are not.
If AmEx were to offer 0% loading to their UK clients as they do to their US plat and Centurion customers, that would help alleviate the devaluation.
For starters:
- the upper age limit for medical cover is reduced to 70 - this alone requires a separate policy for those who want to retain medical cover;
- non-sterling purchases cost an additional 3% (OK, then 2.99%) and some of us use other cards with 0% loading. If we want foreign expenditure to be covered, we pay 3% more;
- travel and/or hotels paid for completely with points are not covered.
We will no longer have the peace of mind coverage currently offered by the AmEx card and will need to check each time which components of our trips are covered and which are not.
If AmEx were to offer 0% loading to their UK clients as they do to their US plat and Centurion customers, that would help alleviate the devaluation.
What happens if you lose your card, or it gets broken, and you cannot pay for travel or accommodation with it?
Dec 9, 2011, 11:09 am
#28
Join Date: Mar 2007
Location: Thatcham, UK or Adelaide Australia
Programs: Marriott Lifetime Plat OZ Diamond SK Diamond BA Blue
Posts: 3,323
No letter received here.
Very annoyed about it. Most of my long haul travel that is subject to inconvenience has to be booked through our corporate travel agent. So effectively, I am now uninsured.
Did get the letter today offering the Plat Credit Card. Not in any hurry to take that up. Same 2.99% Forex fee, same 1 MR per GBP, paltry 3000 MR sign up. One plus: no annual fee.
Very annoyed about it. Most of my long haul travel that is subject to inconvenience has to be booked through our corporate travel agent. So effectively, I am now uninsured.
Did get the letter today offering the Plat Credit Card. Not in any hurry to take that up. Same 2.99% Forex fee, same 1 MR per GBP, paltry 3000 MR sign up. One plus: no annual fee.
Dec 9, 2011, 11:20 am
#29
Join Date: Feb 2009
Location: London, UK
Programs: BA, FB, LH; PC/IC, HH, MR
Posts: 964
Roger, I couldn't have put it better myself. I was going to reply to the exact same two posts until I saw yours
Additional points....
Is that worth the risk / hassle? No, not to me.
To be honest, the travel insurance was the big carrot for me to buying the Amex card. The other travel benefits are useful and helped - I don't deny it - but it was the travel insurance that drew me to the card and swung the decision. Are the other benefits worth £300 if I now have to fork out separately for travel insurance? It's very debatable, to me at least
Additional points....
- Possible/probable added hassle if you try to claim on the policy where you haven't been able to pay using Amex - imagine the argument with Amex if an employee has told you "no, I'm sorry we don't take Amex" because they've been encouraged to say that to avoid the high Amex fees - whereas the company DOES take it. You'd be uninsured because of incorrect information given by an employee.
- Supplementary cardholders will now have to spend on the card and reimburse you
Is that worth the risk / hassle? No, not to me.
To be honest, the travel insurance was the big carrot for me to buying the Amex card. The other travel benefits are useful and helped - I don't deny it - but it was the travel insurance that drew me to the card and swung the decision. Are the other benefits worth £300 if I now have to fork out separately for travel insurance? It's very debatable, to me at least
Dec 9, 2011, 8:33 pm
#30
Join Date: Apr 2006
Location: MAN
Programs: F
Posts: 2,898
Excuse me for being thick, but if you are paying for accommodation or travel ENTIRELY with points, how did the old policy help you? Amex would not have arranged points reimbursement if you lost them by cancelling too late. Many points reservations are flexible or nearly so, and you would get your points back in any case simply by cancelling in advance.
And with respect to the baggage / delay insurance for a travel reservation, apart from the now defunct Airmiles scheme, how did you avoid paying any taxes?
To give an example under the new policy:
Trip paid for by Avios or bmi miles. Taxes put onto an Amex card. Covered.
Hotel payed for with points. Points not covered, never were, not necessary. But use an Amex card as confirmation for the booking: covered in case of charge on card due to no show due to an incident within the terms of the policy. Hotel doesn't take Amex as guarantee? Covered.
And with respect to the baggage / delay insurance for a travel reservation, apart from the now defunct Airmiles scheme, how did you avoid paying any taxes?
To give an example under the new policy:
Trip paid for by Avios or bmi miles. Taxes put onto an Amex card. Covered.
Hotel payed for with points. Points not covered, never were, not necessary. But use an Amex card as confirmation for the booking: covered in case of charge on card due to no show due to an incident within the terms of the policy. Hotel doesn't take Amex as guarantee? Covered.