*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on product links. For more information, please see our Advertiser Disclosure
Discover Card is one of the most innovative leaders in the credit card industry when it comes to rewarding cardholders for their business and loyalty. Usually our blogs about Discover Card products are about new perks being offered – like free access to your FICO score or earning Discover cashback when you make purchases in popular rotating categories by using your Discover plastic. This time around, however, we’re passing along the news that some cardholder benefits are about to be eliminated.
Changes Coming August 1st
On August 1, 2015 Discover will implement changes that came about because of what the company describes as a periodic review of benefits built into the Discover Card. With changes to Discover card benefits, cardholders will no longer enjoy 24/7 Travel Assistance, Baggage Delay Insurance, or Emergency Roadside Assistance. That means that if you have a loss that occurs on or after August 1, 2015, it will not be covered by these benefits.
That is unfortunate timing for cardholders who were banking on those perks and protections for their end of summer vacations. The news is that Discover plans on tweaking a few other benefits, such as purchase protection and price protection.
Should You Dump Discover Card?
In typical corporate fashion, Discover worded the announcement in slick marketing language to put a positive spin on what most cardholders will view as a negative development. Discover called it “streamlining” and emphasized how other benefits will remain intact.
Every company cuts back on costs in order to save money and boost profits, and Discover – despite its great customer service and card member centered philosophy – is no exception. Does this change mean you should reevaluate your relationship with the company?
That depends on your personal needs and preferences. In most cases, the answer will be no because very few cardholders actually use benefits like emergency roadside assistance and delayed baggage insurance. Even without those benefits, the features that Discover still offers may outweigh those of comparable cash back credit cards. Discover it cardholders can still expect to receive the following benefits:
- Purchase Protection
- Extended Product Warranty
- Price Protection
- Return Guarantee
- Cash at Checkout
- Discover Deals
- Fraud Protection
- Flight Accident Insurance
- Auto Rental Insurance
- Various account tools
Still, Discover has won multiple awards for its industry leadership related to superior service, highly valuable membership perks, and they are always offering a new incentive for new sign-up bonuses. Right now, for example, all new Discover card bonus sign up allows cardholders to double their cashback or miles earned at the end of their first year of card membership.
What to Do Now
If you are hitting the road or about to catch a flight, it can be reassuring to know that your credit card has you covered in case something goes wrong. After August 1st, Discover will no longer be offering as many travel protection benefits as before. If you travel often, having at least one card that does provide travel benefits is a good idea– and is a great idea if you travel monthly.
In that case, you may want to hold on to your Discover Card, but use it for purchases unrelated to travel. There are a number of popular travel rewards credit cards that offer 24/7 Travel Assistance and help with your luggage, such as lost luggage assistance or baggage delay insurance. Read the reviews found on CompareCards.com and compare credit cards side-by-side to pick out the best card for you.
*Editorial Note: This content is not provided by Discover. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Discover.
*The content in this article is accurate at the publishing date, and may be subject to changes per the card issuer.