Personal Finance 

Citi Removes Automatic Travel Insurance

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Credit cards often have little-used perks when you buy something with their card, such as double the manufacturer’s or auto liability insurance. Well, another one of the casualties in the financial meltdown is the reduction of these once overlooked perks. The latest? Automatic travel insurance.

I recently received word that Citibank will be removing the automatic travel accident insurance benefit from all cards on September 1st. The benefit, outlined in their list of travel accident insurance product list & disclosures states that under the existing plan:

When you use these cards to buy plane, train, ship or bus tickets, you, your spouse and eligible dependent children are each automatically covered for up to $1,000,000 of Automatic Travel Accident Insurance, at no additional cost to you.

Automatic Travel Accident Insurance is underwritten by National Union Fire Insurance Company of Pittsburgh, Pa. Certain conditions, restrictions and exclusions apply. Details of coverage will be provided upon cardmembership.

Citi recently instituted annual fees on some cardholders and now they’re removing an insurance I’ve never used. I think the CARD Act has a lot to do with this and we’ll be seeing more and more of these types of things from all credit card issuers.

{ 12 comments, please add your thoughts now! }

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12 Responses to “Citi Removes Automatic Travel Insurance”

  1. frugalgrad says:

    So I have been covered by this insurance for a long time without knowing it. Now that I know it, it will be removed soon. Good to know.

  2. No!!!! Citi is changing, a lot. Unfortunately for all of us who use them for credit cards or whatnot, we seem to be the losers in all this change.

    Thanks for posting this, though, because I also did not know they offered this in the first place.

  3. Adam says:

    I think these credit card companies are just begging us to stop using them. What’s next, an automatic 3% fee as soon as you charge something?

  4. Andrew says:

    I always liked the travel insurance because it was free, and purchasing it a la carte is very, very expensive. Of course, if you have life insurance, it’s kind of redundant, except that it tends to pay more. I suspect you could purchase a blanket travel insurance policy on an annual basis for very little money if you shopped around.

  5. eric says:

    Not too big of a deal for me but it does make my Citi PremierPass card a bit less attractive.

  6. Jeff says:

    I don’t like this at all. I always put rental cars on my Citi card just so I would have that insurance and not have to pay the crazy amount that the rental car company charges.

    • Andrew says:

      You appear to have confused travel accident insurance with car rental insurance. Your existing auto insurance policy should cover damage to a rental car, but check with your carrier to be sure.

  7. JB says:

    I have never thought to use this feature, so it doesn’t bother me they are taking it away. I just hope they don’t start charging me an annual fee.

  8. With the recent problems in the financial industry and the new consumer credit card protection laws going into effect, more of the perks and benefits of credit card usage will go away.

    There has never been a better time to stop using them.

  9. Robert says:

    I think we will all see reduced credit card benefits in the coming months. I know travel insurance, buyer protection, and auto insurance was always nice to have but now I encourage people to read their agreement if they think they may need any of this coverage.

    At present there are still some cards out there, and if you are willing to pay the annual fee, some still have favorable perks like this. Sometimes the annual fee is only $30 per month.

  10. gary major says:

    citi bank also increased interest rates …mine jumped 5% so i opted out, shutting down the card, i owe them and will pay…just not at the rate they would like. The CARD act will actually probably hurt consumers in the short run, not help as was the intent

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