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Amex and Costco

JudyS

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For those who enjoyed having an Amex card with no fee, Fidelity Investments offers a no-fee Amex card. I believe it offers 2% back on purchases. I assume you need to have a Fidelity account, but Fidelity IRas can be opened with a very small initial deposit. (Not sure what fees, if any, apply to a Fidelity IRA.)

There are Amex cards that give more cash back on certain purchase categories, but those cards have an annual fee.
 

LAX Mom

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For those who enjoyed having an Amex card with no fee, Fidelity Investments offers a no-fee Amex card. I believe it offers 2% back on purchases. I assume you need to have a Fidelity account, but Fidelity IRas can be opened with a very small initial deposit. (Not sure what fees, if any, apply to a Fidelity IRA.)

There are Amex cards that give more cash back on certain purchase categories, but those cards have an annual fee.

My son loves his Fidelity Amex card with 2% cash back. He puts everything on it (and pays it off every month!!). I've considered switching to that card, but we use our Costco Amex for gas with 4% back (business card). It's been convenient to have a card for use at Costco & gas stations.

Depending on what card Costco offers next year, I might start using the Fidelity Amex card.
 

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We had no trouble getting our Costco American Express changed over when they switched here in Canada. I am happy that I can now use my air miles card at Costco. We still wanted the American Express card to buy gas at Costco in the US but it looks like we won't need it anymore.

Lynn
Lynn, I didn't know Costco accepts the Air Miles card. I'll go back with my bills to Jan. 1 or 15 when the switched over and will see if they credit my Air Miles card. Or are you talking about getting Air Miles with the BMO Master Card?
 

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Lynn, I didn't know Costco accepts the Air Miles card. I'll go back with my bills to Jan. 1 or 15 when the switched over and will see if they credit my Air Miles card. Or are you talking about getting Air Miles with the BMO Master Card?

I think there is a difference between Air Miles and air miles. The capitalized one being the Air Miles branded system where air miles can mean earning air miles by using a airline branded credit card.
 

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When I posted this thread, I was wondering how Amex users felt about this. But I noticed most people are Amex users due to the store's requirements. Seems like they're ok with this divorce.

I stumbled upon Costco due to an Amex promotion. I practically use Amex for all of my cc transactions. But as I became more dependent on Costco, I felt this event as a huge disappointment.

Any true Amex users feel like they are losing benefits and choices from Amex due to the divorce?
 

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What I really like about the AMEX Costco card we have is the rental car coverage that offers way more protection than a regular visa card. I use this card in Mexico and Canada for rental cars. We also use it at Costco and seem to get about $400 cash back a year. I would rather have airmiles.

Bill
 

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What I really like about the AMEX Costco card we have is the rental car coverage that offers way more protection than a regular visa card. I use this card in Mexico and Canada for rental cars. We also use it at Costco and seem to get about $400 cash back a year. I would rather have airmiles.

Bill

Up until a few months ago I thought the Costco card had the best car rental coverage. However, a few months ago Citibank changed the terms of their car rental coverage and I think the Citi cards are now better.

For example, out of the US, the Citicard provides primary coverage. Citi also covers vehicles up to $100,000 in value where I think the Amex limit is $50K. Citi now also covers all vehicles as long as they are passenger vehicles not driven off road. Amex doesnt cover some vehicles, full size SUVs among them.

Check out the Citicard coverage and see what you think.
 

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The best ones provide primary (as opposed to secondary) rental car coverage in the US (IMHO).

I know UA Mileage Plus Explorer Visa includes it.

There are several other options for those that don't want to pay an annual fee.

-ryan
 

rickandcindy23

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There are much better cards for earning points than Costco's Amex, including the Starwood Amex. We have the Costco Amex card and will be happy to switch, if we must, but get back a very small rebate. Compared to our Chase Ink Bold and Ink Plus cards, the card isn't worth much to us.
 

easyrider

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We use the Alaska Airlines Visa for most purchases. Included with this card are a yearly companion ticket for , I can't remember but think its about $120. We rack up miles using these cards to pay for anything that accepts them.

So how will this work with the Costco dealio ? Will they issue new cards with the membership info on it or will we need to actually apply for their new card ?

Bill
 

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The best ones provide primary (as opposed to secondary) rental car coverage in the US (IMHO).

I know UA Mileage Plus Explorer Visa includes it.

There are several other options for those that don't want to pay an annual fee.

-ryan

I didnt realize that card provided primary coverage in the US. Thats a great feature. Thanks for posting that info.
 

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When I posted this thread, I was wondering how Amex users felt about this. But I noticed most people are Amex users due to the store's requirements. Seems like they're ok with this divorce.

I stumbled upon Costco due to an Amex promotion. I practically use Amex for all of my cc transactions. But as I became more dependent on Costco, I felt this event as a huge disappointment.

Any true Amex users feel like they are losing benefits and choices from Amex due to the divorce?
I use my Amex cards a lot, and I'm not too happy with the news. As long as Costco will take one of my other existing cards, that would be OK. But I wouldn't to apply for something like a Costco store card -- it's not worth doing a hard pull on my credit report just to get a store card. If Costco won't take any of my other cards, I would pay by cash or check, and that would be a factor encouraging me to shop elsewhere.

By the way, I don't have a Costco Amex. I have a different Amex that gives 5% back on certain purchase categories after meeting a minimum annual spend of $6500. I don't think my specific card is offered to new users, but there are other Amex cards that offer up to 6% on certain categories.
 

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The best ones provide primary (as opposed to secondary) rental car coverage in the US (IMHO).

I know UA Mileage Plus Explorer Visa includes it.

There are several other options for those that don't want to pay an annual fee.

-ryan
Wow! Are you saying UA Mileage Plus Explorer Visa offers free primary auto insurance coverage? I thought Diner's Club was the only card with free primary auto insurance coverage -- and Diner's Club isn't accepting new applications from US customers.

American Express offers primary auto insurance coverage on car rentals (in addition to free secondary auto insurance), but the primary coverage has a fee of $19.99 or $24.99 per rental, depending on coverage level.

Believe it or not, the free auto coverage from Amex works better if you have no collision insurance on cars you personally own. If you have collision insurance, then Amex submits the claim to your own insurance first, and your auto insurer may raise your rates because you had a claim. If you have no collision insurance, Amex generally doesn't even bother submitting the claim to your insurer (at least, that's what Amex told us.)

Currently, our only car is an old beater and we have no collision insurance. My husband had a minor accident with a rental car in Orlando recently. The Amex free secondary coverage paid all the damages and Amex said they wouldn't contact our personal auto insurance company. But we will probably buy a new car soon and get collision insurance, at which point having primary auto insurance for rental cars will be more important.
 
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Here is what I expect will happen between now and the Costco/AmEx breakup in 2016.

AmEx will offer (or even automatically switch) all current Costco AmEx card holders to one of their other AmEx cards. Which one? Who knows, but probably to one that has similar benefits. AmEx wants to retain the Costco card holders as customers, so they will do what they can to make it easy for the current Costco AmEx card holders. Since the customer already has a account/contract with AmEx for credit, it should be quite painless. It is possible they will automatically issue new cards to the Costco AmEx card holders. (I had one CC move from MasterCard to Visa system and all they did was mail me a new card.) Remember, AmEx wants to retain as many of its Costco customers as possible.

The Costco side may be a little more complicated. Costco will do a new deal with a different credit card company, most likely Master Card or maybe Visa. Once the deal is done, Costco will offer all current Costco AmEx card holders the new card. Again, it is in Costco's interest to make it as easy as possible for customers to switch over. But since the credit part of the card is with the issuing bank, it will probably require a new application. Maybe they will figure out a way to avoid that, but I wouldn't count on it. At any rate, once a new card brand is in place, as with AmEx today, Costco will accept any version of the card, not just the one branded to Costco.

That is my prediction.

Greg
 

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I didnt realize that card provided primary coverage in the US. Thats a great feature. Thanks for posting that info.

As of August 2014, here are the others that provide primary coverage for US car rentals -- some do not accept new applications as the article notes.

http://millionmilesecrets.com/2014/08/18/credit-cards-with-primary-rental-car-insurance/
http://thepointsguy.com/2014/08/credit-cards-that-offer-primary-car-rental-coverage/

(I added both links because I'm not sure either list is fully inclusive.)

-ryan
 
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PigsDad

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Wow! Are you saying UA Mileage Plus Explorer Visa offers free primary auto insurance coverage? I thought Diner's Club was the only card with free primary auto insurance coverage -- and Diner's Club isn't accepting new applications from US customers.

American Express offers primary auto insurance coverage on car rentals (in addition to free secondary auto insurance), but the primary coverage has a fee of $19.99 or $24.99 per rental, depending on coverage level.

Yep -- we have both cards and have switched from the Amex (which used to charge us $24.95/rental) to the United Explorer card for all our car rental charges now. It is a great deal.

(and as sjsharkie shared above, there are a few other cards that offer primary coverage for free)

Kurt
 

LynnW

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Lynn, I didn't know Costco accepts the Air Miles card. I'll go back with my bills to Jan. 1 or 15 when the switched over and will see if they credit my Air Miles card. Or are you talking about getting Air Miles with the BMO Master Card?

Sorry Elli I didn't mean the Air Miles card We have a Royal Bank Avion

Lynn
 

dioxide45

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Wow! Are you saying UA Mileage Plus Explorer Visa offers free primary auto insurance coverage? I thought Diner's Club was the only card with free primary auto insurance coverage -- and Diner's Club isn't accepting new applications from US customers.

It isn't free, there is a $95 annual fee on the UA Mileage Plus Explorer Credit Card. Though there is no additional fee when you rent like there is with Amex. Also, the first checked bag is free when you have the Explorer card and are flying United.
 

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It isn't free, there is a $95 annual fee on the UA Mileage Plus Explorer Credit Card. Though there is no additional fee when you rent like there is with Amex....
Wow! I stand corrected on my earlier statement that Diner's Club is the only card that offers primary collision insurance for free when one rents a car and pays using that card. (I'm pretty sure that was true a few years ago.)

As it turns out, I already have several credit cards that reportedly offer primary collision coverage for rental cars. I'll want to verify with the credit card companies to make sure the coverage hasn't changed, but overall, this is really good news.

Also, everyone please disregard what I said earlier on this thread, about secondary coverage not covering anything towards the collision deductible specified on one's personal car insurance. I don't know if that's right.

On the other hand, Amex did tell me, "Since you have no collision coverage, we'll just pay all the damages without contacting the company that provides your personal car insurance."

I find the whole concept of insurance for rental cars quite confusing, so if anyone know much about this topic, I'd love to hear it.

Also, for everyone reading this, remember that credit card companies may offer some sort of free coverage for collision on rental cars (damage to the rental car), but as far as I know they don't provide any liability insurance (coverage for injuring someone or damaging other people's property).
 
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It isn't free, there is a $95 annual fee on the UA Mileage Plus Explorer Credit Card. Though there is no additional fee when you rent like there is with Amex. Also, the first checked bag is free when you have the Explorer card and are flying United.

I was not aware of this either, usually use Amex or Marriott Visa but will use my United card going forward. TUGGERS rule!!!
 

dioxide45

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Wow! I stand corrected on my earlier statement that Diner's Club is the only card that offers primary collision insurance for free when one rents a car and pays using that card. (I'm pretty sure that was true a few years ago.)

As it turns out, I already have several credit cards that reportedly offer primary collision coverage for rental cars. I'll want to verify with the credit card companies to make sure the coverage hasn't changed, but overall, this is really good news.

Also, everyone please disregard what I said earlier on this thread, about secondary coverage not covering anything towards the collision deductible specified on one's personal car insurance. I don't know if that's right.

On the other hand, Amex did tell me, "Since you have no collision coverage, we'll just pay all the damages without contacting the company that provides your personal car insurance."

I find the whole concept of insurance for rental cars quite confusing, so if anyone know much about this topic, I'd love to hear it.

Also, for everyone reading this, remember that credit card companies may offer some sort of free coverage for collision on rental cars (damage to the rental car), but as far as I know they don't provide any liability insurance (coverage for injuring someone or damaging other people's property).

I believe you were correct. If you have collision coverage on your vehicle and use a credit card that offers secondary CDW coverage, first you must file a claim with your insurance company. Any amounts they don't cover can be claimed against the collision CDW. So that would be any deductible you have. If you are using some kind of CDW (primary or secondary) you should not be out of pocket any money if you have to file a claim.

They key is to make sure you use that credit card for every aspect of the rental. At one time Alamo had the ability to input your credit card number online, I made sure to use a card that had CDW coverage. I think that was before we had the UA Explorer. When you return the car and they ask if you want to keep it on the same form of payment, you must do so. Don't decide to pay cash or debit.

CDW through a credit card or even the rental agency does not cover liability. You will still need your own insurance for that. Though I think you may be able to buy this option through the car rental agency, though it isn't cheap. I suspect it is mainly for people who do not own a car, perhaps because they live in a large metropolitan area.
 

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Sorry Elli I didn't mean the Air Miles card We have a Royal Bank Avion

Lynn
Thanks, Lynn, I use my Starwood Amex wherever it is accepted (used to have Royal Bank Avion), but with Costco I now use my BMO Master Card, which does earn Air Miles.
 

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Dioxide45, thanks very much for the information!

I've looked into this topic some during the past day, and have found some additional information.

According to a poster on another forum, credit card companies usually don't tell your regular auto insurance about the claim, even if the credit card coverage is secondary. Instead, the credit card company just asks to see the declarations page from your auto insurance to determine what coverage you have. If you have collision insurance, the credit card company pays just the deductible and it is then up to the renter to decide whether to file with their regular insurance to cover the rest of the damage, or pay for the rest of the damage out of pocket without filing a claim with their regular insurance. If you have NO collision insurance, the credit card company pays for all the damage to the rental car, up to the amount of their coverage limit. (If you totaled a $80,000 sports car, say, that would likely exceed the maximum benefit on the free coverage.)

The above policy (on notifying your regular auto insurance about the claim) may vary between different U.S. states. However, I'm not sure which state's policies are the determining factor -- the state where the car damage occurred, or the state where you have your auto insurance.

Also, when a renter damages a car, they may owe charges in addition to the actual repair cost of the car. There is often a fee charged by the rental car company for administering the repair, plus a fee charged by the rental car company for "loss of use" of the car while it is in the shop. Personal auto insurance may not cover these fees. Coverage through a credit card may or may not cover them, depending on the particular card's policies.

When we had our recent claim with Amex for damage to an Alamo rental car, Alamo charged an administration fee, which Amex paid. Alamo also had a "loss of use" fee, but Amex negotiated with Alamo and Alamo removed that charge. We paid nothing at all for the damage.


It's also occurred to me that using RCI Points for a car rental might not provide any automatic car rental damage coverage. (There is a $25 transaction fee when booking a car through RCI Points, but I don't know if that fee, when charged to a credit card, qualifies for free rental car damage insurance.) So, even if I have extra RCI Points, I won't use them for car rentals.
 

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It's also occurred to me that using RCI Points for a car rental might not provide any automatic car rental damage coverage. (There is a $25 transaction fee when booking a car through RCI Points, but I don't know if that fee, when charged to a credit card, qualifies for free rental car damage insurance.) So, even if I have extra RCI Points, I won't use them for car rentals.


I use my AMEX (and pay the $18 per rental fee for additional coverage) currently, though every year or two I revisit this topic. It seems that now is a good time to do so again.

To your point, whenever I rent via Priceline I call AMEX and tell them it's for a car rental (as opposed to flight or hotel) and they charge the $18 and I'm covered. They only automatically charge when it's from a known auto rental company. Depending on which card you're currently using, you may be able to do similar when renting via RCI, though I wouldn't be surprised to learn that the cc deny the coverage since the entire rental wasn't paid on the card (and the $25 may be considered an administration fee unrelated to the car rental itself).



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