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Travel Rewards and Benefits: True Earnings Card from Costco and American Express

Picture of Item Reviewed

Editor's Rating:
Intro Purchase APR Regular APR Intro Balance Transfer Annual Fee Credit Needed
N.A. No Annual Fee with your paid Costco Membership Excellent
Executive Summary - Costco offers 2% cash back when you use your card to book for travel. But what types of trips can you book and with whom? We'll investigate in more detail here.

As mentioned in our introduction on the card's benefits, you can earn 2% cash back on travel expenses. Many folks are still confused about this. We get lots of quesitons like "can you use the Costco card to book American Airlines or SouthWest tickets?"

The answer is YES. In fact, you can get 2% rebates when you use the card to book airline tickets, hotels, cruises and car rentals. You can book directly with the airline or hotel, online or with an off-line travel agent.

In fact, booking your travel like this allows you to still earn your frequent flyer miles or frequent guest points (in addition to getting 2% cash back).

In addition, you get the following "travel benefits" with this card.

  • Travel Accident Insurance - The card also provides travel accident and death insurance when you use it to purchase your travels. It covers the port of departure to the port of arrival. The coverage includes additional card holders, spouse, domestic partners and dependents. The coverage value is $100,000.

  • Auto Rental Insurance - In addition to travel accident insurance, the card also provides auto rental collision damage waiver insurance. The coverage is on a secondary basis, which means you need to use your primary auto insurance coverage (both domestic and abroad). The coverage this card provides will cover stuff (like deductibles) that are not covered by your main insurance. If you travel abroad, you have to bear in mind that coverage does not extend to the following countries: Italy, Jamaica, Israel, Ireland, Australia and New Zealand. The coverage is good for 30 consecutive days.

  • Global Assist - Global Assist used to be a feature on Amex's Gold Cards. But this benefit is now available on this one. When you travel abroad, you have a number to call if you need any legal, medical or translation assistance. American Express will help you find someone who can help you in the event you need it.
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