USAA will cut price protection this August, but it is expanding other benefits to cover the loss.
Starting Aug. 31, 2019, USAA is making some changes to its credit card perks, according to reports by Doctor of Credit. Most notably, the issuer will remove the price protection benefit currently available on many USAA cards.
This change is sure to be an unwelcome one for many cardholders, as price protection can save you hundreds of dollars throughout the year if an item you buy drops its price soon after your purchase. On the plus side, USAA is also expanding some other card perks to make up for this loss. Starting Aug. 31, cardholders will enjoy a higher claim maximum on their extended warranty protection in addition to more extensive car rental coverage.
Doctor of Credit cites new coverage as follows:
- Auto Rental Collision Damage Waiver will no longer include a limit on the value of car you rent, though other restrictions may apply.
- Extended Warranty can cover claims of up to $15,000, up from $10,000.
- Price protection is being discontinued.
Not the first issuer to slash price protection
Price protection has been increasingly disappearing from credit card benefits, and USAA is not the first to cut the perk from its credit cards. Last month, Citi alerted cardholders that Citi® Price Rewind – a popular price protection benefit that reimburses cardholders in the case of a price reduction – will be removed from Citi cards beginning Sept. 22, 2019.
As perks like price protection become harder to find, it is important to regularly evaluate if your credit card is still offering you significant value. While USAA is expanding other card benefits to cover the loss of price protection, many issuers are silently cutting back without compensating.