Discover is now offering cardholders paid identity theft protection insurance for $15 per month. This comes with up to $1,000,000 in coverage. Interestingly they are advertising some of the benefits that all cardholders currently receive as benefits of this identity theft protection. For example free social security alerts. When looking at the coverage limit of $1,000,000 it’s also important to understand what this covers. In most cases this type of protection will cover expenses incurred as a result of restoring your identity, for example:
- Phone bills
- Lost wages (usually only up to a maximum of four weeks)
- Notary and certified mailing costs
- Postage
- Obtaining credit reports (this can be done for free through http://www.annualcreditreport.com)
Discover specifically states that in this case it also covers reimbursement of stolen funds and lost wages. This coverage is actually provided by American International Group, Inc. (AIG). It’s disappointing to see that Discover is launching a paid service like this when they have already made huge cuts to benefits this year (as well as the loss of price protection). The fact that consumers even need to consider such an insurance points to a clearly broken system where large corporations with lax security are putting the private information of consumers at risk with little to no consequence.
Who would buy this for even $5/month?
Especially since you can get identity theft insurance free from Credit Sesame: https://www.creditsesame.com/product/identity-theft/
Gotta say, Discover, what are you doing?
I used to pay my Discover bill at different Sears Department Stores and sometimes buy from Sears when paying my credit card bill. At this rate, Discover Bank is following Sears to the dung heap fast
Discover used to be owned by Sears.
My Discover cards are in the sock drawer for the LONGEST TIME… Amex and others buried Discover Bank long ago…No promotions and I never keep any Discover Bank cards in my wallet. Nothing exciting at DIscover Bank! I would NOT recommend Discover Bank to anyone! Discover must run some promotions
Are they getting ready to announce a big data breach of their own? Wouldn’t surprise me.
Doubt it
And in 12 months we’ll read how Discover employees have sold our data to the very same companies offering “protection” from identity thieves.
They are making it harder and harder for me to defend them
Their secured card goves you cash back and they have 5% categories for MSing. Good as a first card and for MSing the categories, but not much else.
Yeah I know that, I just mean I really used to like them as a company because of the benefits they offered but there slashing so much.
If you’re interested in something like this then check with your renter’s/homeowner’s insurance. I’m insured with State Farm and had them add an “Identity Restoration Coverage Endorsement” to my renter’s insurance for about $30/year. It covers several things, including attorney’s fees for specific identity theft situations (removing civil judgments against me, taking legal action against credit reporting agencies to fix problems, etc.). It also provides a case manager who will contact creditors, credit bureaus, etc. on my behalf so I don’t have to spend my own time dealing with it.
I’ve never had to use this coverage so I can’t comment on how well it actually works, but identity theft is so widespread and the coverage is so cheap that I figure it’s worth having.
+1
Not getting a discover card now
I still reccomend discover to people starting with their first credit card since they are the only issuer i know of that gives people cash back on a secured card. They also get better fraud protection unlike cash or debit.
I also like to MS their 5% categories where price and return protection dont matter for stuff like VGCs.
Their customer service is still really good and I do use their checking account for bill paying all my credit cards.
Other than that, my card is mostly sock drawered.
great post. thanks DOC
After cutting Discover deals… it should be free!! #usedtobemyfavoritecard. John 3:16
So true. Discover used to be my favorite card for all the benefits they offered, even though I rarely used them. No they have nothing going for them.
seconded.