- Bargaineering - http://www.bargaineering.com/articles -

Citi Removes Automatic Travel Insurance

Credit cards often have little-used perks [3] 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 [4] 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 [5] 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.