Citi “improves” travel benefits of credit cards by eliminating the perks
Autoslash, a discount rental car online travel agent, sent out the following (slightly modified) press release about the slashing of Citi credit card travel benefits.
The big question is now, will other credit cards eliminate their travel benefits. Are programs such as rental car insurance, trip cancellation & interruption protection, worldwide travel accident insurance, trip delay protection, baggage delay protection, and lost baggage protection going to be eliminated from other credit cards?
All travelers should check carefully to see what changes are in store for other travel benefits on other credit cards. We are entering a real caveat emptor (buyer beware) period with credit card benefits. If travelers hadn’t been paying attention to these travel benefits in the past, this is a certain way to highlight them.
Many Citi Cards lose their travel pizazz
If travelers are used to using a Citi credit card because of benefits like car rental insurance, it is now time to rethink how they pay for upcoming trips.
As of September 22, 2019, Citibank is sharply reducing its included travel perks. Most Citi cards will no longer cover car rental insurance, trip cancellation insurance, worldwide accident insurance, delay protection, baggage delay protection, medical evacuation assistance, and some other non-travel benefits.
There seems to be an exception for co-branded Citi Costco cards. Depending on which card you have, there may be a few or all travel perks left untouched.
ALSO ON TRAVELERS UNITED: 10 lost luggage rules for maximum compensation
For many Citi cardholders, the slashing of travel perks is a deal-breaker. Many consumers have come to rely on credit card benefits to provide insurance coverage and other protections for their travels. The car rental insurance perk means being able to decline the rental car agency’s expensive over-the-counter insurance.
Travel perks cut from most Citi credit cards
Most Citi cardholders recently received the following message:
Important changes are coming to some of your Card Benefits.
The following is a summary of changes that are being made to your card benefits.
Effective September 22, 2019, Worldwide Car Rental Insurance, Trip Cancellation & Interruption Protection, Worldwide Travel Accident Insurance, Trip Delay Protection, Baggage Delay Protection, Lost Baggage Protection, Citi® Price Rewind, and 90 Day Return Protection will be discontinued and will no longer be provided for purchases made on or after that date. Coverage for purchases made before that date will continue to be available, and you may continue to file for benefits in accordance with the current benefit terms. Roadside Assistance Dispatch Service and Travel & Emergency Assistance will be discontinued and will not be available on or after September 22, 2019.
We are making these changes so that we can continue providing the key benefits that our customers use and value most at no additional cost. This change requires no action on your part. See FAQs under Card Benefits for answers to Frequently Asked Questions regarding these changes.
As a cardmember, you will continue to receive a range of other card benefits including FICO® Credit Score, Citi® Identity Theft Solutions, and Citi Entertainment.
Here’s the itemized list of benefits discontinued for the majority of Citi credit cards:
- Worldwide Car Rental Insurance
- Trip Cancellation & Interruption Protection
- Worldwide Travel Accident Insurance
- Trip Delay Protection
- Baggage Delay Protection
- Lost Baggage Protection
- Citi Price Rewind
- 90 Day Return Protection
- Roadside Assistance Dispatch Service
- Travel & Emergency Assistance
Exceptions for Citi Costco credit cards
Exceptions for Citi Costco credit cardsThese new benefit changes appear to affect the lion’s share of Citibank-issued cards, but co-branded Citi Costco cards seem to have been spared the brunt. In the case of the Citi Costco Anywhere Visa Credit Card, cardholders received this notice:
Important changes are coming to some of your Card Benefits.
The following is a summary of changes that are being made to your card benefits.
Effective September 22, 2019, Trip Cancellation & Interruption Protection and Citi® Price Rewind will be discontinued and will no longer be provided for purchases made on or after that date. Coverage for purchases made before that date will continue to be available, and you may continue to file for benefits in accordance with the current benefit terms.
We are making these changes so that we can continue providing the key benefits that our customers use and value most at no additional cost. This change requires no action on your part. See FAQs under Card Benefits for answers to Frequently Asked Questions regarding these changes.
As a cardmember, you will continue to receive a range of other card benefits including FICO® Credit Score, Citi® Identity Theft Solutions, and Citi Entertainment.
READ ALSO: What can I do after a car rental accident (with no insurance)
In other words, some travel perks are being discontinued but others, including car rental insurance, remain.
And there appears to be no loss of travel perks at all for holders of the Citi Costco Anywhere Visa Business Credit Card, which covers primary car rental insurance and, unusually, does not explicitly exclude personal rentals from primary coverage.
When choosing which credit card to use when paying for a rental car, it’s important to pick a card that offers at least secondary insurance—or, even better, choose a card that offers primary insurance protection. If you’re unsure which kind of protection your credit card offers, call the issuer before you pay for the rental car to verify.
Let’s hope that other banks do not follow suit and discontinue key travel benefits.
The lesson here is to let the buyer beware. Before booking a trip, always double-check to ensure that your credit card will offer the perks and benefits you need. If not, use another card to pay for the trip.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
