Sapphire Preferred Phasing Out 7% Annual Dividend, Adding Primary Rental Car CDW Insurance Worldwide

The Chase Sapphire Preferred card is an excellent all-around card thanks to its generous double point categories that include airfare, hotel stays, car rentals, restaurants, catering, fast food, coffee shops, bars, lounges, cafes, taxis, Uber, parking, limos, buses, trains, EZPass, bridges, ferries, timeshares, etc.  On the first Friday of each month the dining/catering category is bumped up to triple points.  The card is made from metal and a real live human being answers the phone when you call customer service without having to navigate a phone-tree maze.

The card offers 40,000 Ultimate Rewards points for spending $3,000 in 3 months and an additional 5,000 points for adding a free additional user card. The $95 annual fee is waived for the first year.  There are no foreign exchange fees with Sapphire Preferred.

Unfortunately the 7% annual point dividend on top of all earning is being phased out.  Existing customers will still earn the 7% points dividend in February 2015 for 2014 purchases and one final time in February 2016 for 2015 purchases.

On the plus side though, effective today Chase is adding free primary car rental CDW insurance for every country in the world to the Sapphire Preferred card.  Almost every other credit card out there (besides for Chase United cards) only offers secondary coverage when you rent a car in your home country.

The difference between primary and secondary coverage is huge.  Secondary coverage requires that you file a damage claim with your own car insurance company and only if your personal car insurance denies the claim will the credit card pay out.  You would have to be crazy to file a claim with your personal insurance for a scratch on your rental car. With primary coverage the credit card will cover all damage done to your rental car and your personal car insurance will never have to find out-so you won’t have to file a claim with your personal car insurance and your premiums won’t go up.

Most credit cards also exclude countries like Israel from coverage, however all Chase cards cover you worldwide, including in Israel.  And they will give you a letter of coverage stating that you are covered in Israel so that you don’t have to argue at the rental car counter that your Chase Visa does give CDW coverage.

With primary worldwide coverage on top of 2 points per dollar for car rentals, there is no better card today to rent a car on than Sapphire Preferred.

Chase also announced that effective today trip cancellation and trip interruption insurance on the Sapphire Preferred card will go up from $5,000 per trip to $10,000.  Other card benefits include:
-Lost luggage protection ($3,000 per person)
-Trip delay protection ($500 per person for trips delayed by 12+ hours or that require an overnight stay)
-Baggage delay protection (If delayed 6+ hours: $100 per day per person up to 5 days)
-Travel accident insurance
-Price protection ($500 per item that drops in price within 90 days of purchase)
-Return protection ($500 per item for 90 days)
-Purchase protection ($500 per item damaged or stolen for 120 days)
-Extended warranty protection ($10,000 per item for an extra year on original warranties of 3 years or less)

The Chase Sapphire Preferred card earns Ultimate Rewards points and has the ability to transfer points into miles.  It also gives you the ability to transfer points from fantastic cards like Chase Freedom and Ink Cash into miles as well, as those cards can’t transfer points directly into miles without having the Sapphire Preferred, Ink Bold, or Ink Plus card.

Points transfer at an equal ratio to:
-United (Star Alliance)
-Singapore (Star Alliance)
-British Airways (OneWorld)
-Korean (Skyteam)
-Southwest
-Virgin Atlantic
-Hyatt
-Marriott
-Ritz Carlton
-Priority Club
-Amtrak

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52 Responses to “Sapphire Preferred Phasing Out 7% Annual Dividend, Adding Primary Rental Car CDW Insurance Worldwide”

  1. pointie Says:
    1

    Do you have the link to the updated “Guide to benefits” for this card?

    ReplyReply
  2. Dan Says:
    2

    @pointie:
    Not yet.
    Existing customers should get something in the mail over the next couple months.

    ReplyReply
  3. samuel Says:
    3

    Thanks for the post. Just one correction. Ezpass is not considered travel on the sapphire. I spoke to them several times and thats what they told me.

    ReplyReply
  4. shmool325 Says:
    4

    Does the car rental primary benefit also apply to the chase ink business bold card?

    ReplyReply
  5. Jr Says:
    5

    How many days will csp cover for a rental in us

    ReplyReply
  6. DZ the Telzer Says:
    6

    Is there a Forex on this card

    ReplyReply
  7. Itsyehuda Says:
    7

    @DZ the Telzer:

    No forex

    ReplyReply
  8. Dan Says:
    8

    @samuel:
    Everything I’ve read online from people indicate that they have gotten double points for EZ-Pass.
    Are you sure you didn’t get double?
    I wonder if it might vary by state?

    @shmool325:
    Ink cards only offer primary CDW on rentals in your home country that are for business purposes only.
    Personal rentals only have secondary coverage on Ink.

    @Jr:
    31.

    @DZ the Telzer:
    Nope!

    ReplyReply
  9. pointie Says:
    9

    Dan,

    The Benefits administrator is not aware of the primary for this card at this time. I would be cautious to rent something and expect primary coverage without seeing something in writing. I am sure it is true, but the folks that handle the benefits are not aware of this as of now.

    ReplyReply
  10. Joel Says:
    10

    Will the coverage apply also for existing rentals started before their upgrade?

    also, what is the length of rental days they are covering? I once heard they are covering only for 15 days.

    ReplyReply
  11. Dan Says:
    11

    @pointie:
    It just went into effect 48 minutes ago.
    Give them a few hours to catch up 😀

    @Joel:
    Doubtful.

    31 days.

    ReplyReply
  12. pointie Says:
    12

    lol!

    ReplyReply
  13. SuperAIDS Says:
    13

    Hi Dan,

    How does the primary rental insurance compare to American Express’ version where you pay $25/day?

    When I rent now, I put the car on my AmEx and upon returning the car I ask the agent to bill me on a different card instead (assuming the car is undamaged!)

    Should I continue with AmEx or start renting with Sapphire Preferred?

    ReplyReply
  14. pointie Says:
    14

    Super:

    What you speak of is a program (premium car rental coverage) that covers a rental for up to 42 days per rental period. Also, not all states pay the $24.95 a day. Clearly, this new SP deal is better………

    ReplyReply
  15. pointie Says:
    15

    CORRECTION: $24.95 a rental period

    ReplyReply
  16. sara Says:
    16

    As long as we have United for primary insurance, is it possible to apply (or recon) today for the current 7% dividend card instead of the new card? (but losing out on the increased trip insurance)

    ReplyReply
  17. Susan B Says:
    17

    when is the 7% being phased out? Is it too late to apply?

    ReplyReply
  18. Anonymous Says:
    18

    How does sapphire return protection compare to Amex?
    As for the travel protections I have learned that by time you are done with All their exclusions there isn’t much they are covering..

    ReplyReply
  19. crazy tools Says:
    19

    Did the regular Sapphire card (not Preferred) also get the primary CDW?

    ReplyReply
  20. chaim Says:
    20

    Hi dan.

    Have 2 questions on the benefits
    1. When renting a vehicle in israel for example, were the price of cars are significant higher and every full size car exceeds the 50k value limit or in every other country when the rental company suddenly offers you a luxury car that exceeds the limit what do you have to do? Do you have to decline the upgrade in order to be covered?
    2. On award tickets, if I paid all charges and fees with my CC, will I be entitled to travel protection as trip interruption, lost luggage?

    ReplyReply
  21. Same q Says:
    21

    On award tickets, if I paid all charges and fees with my CC, will I be entitled to travel protection as trip interruption, lost luggage?

    ReplyReply
  22. Dan Says:
    22

    @SuperAIDS:
    SP is a whole lot less of a hassle than that.

    @sara:
    All cards will have these new benefits.

    As far as the 7% goes, that’s being phased out today.

    @Susan B:
    It seems like it’s already phased out for new applications.
    I mean anything is possible and applications today might fall through the cracks, but you shouldn’t bank on that.

    @Anonymous:
    Not as smooth, but it does cover a higher amount.

    @crazy tools:
    No, only the preferred.

    @chaim:
    1. My understanding is that Chase doesn’t have a dollar amount cap on their CDW coverage.
    And luxury cars are included (though exotic cars are excluded).

    2. Again, my understanding is that as long as you put all the taxes/fees on the card that you will be covered.

    ReplyReply
  23. rocky Says:
    23

    Are these new benefits also in effect in the the sapphire non-preferred?

    ReplyReply
  24. milechazzer Says:
    24

    With the new terms in effect, does Sapphire rank better than Amex cards for all car rentals and flights? Or are some of the Amex cards still better in any ways?

    ReplyReply
  25. Novo Says:
    25

    @Dan: In the “Guide To Benefits” book they exclude vehicles with an MSRP over 50k

    ReplyReply
  26. Mickey Says:
    26

    Thanks for all this info! How can I get the letter of coverage stating that I’m covered in Israel from Chase?

    ReplyReply
  27. Jason Smith Says:
    27

    If you don’t have collision insurance on your car, then secondary insurance will cover you. I have never had collision insurance, it is the biggest waste of money out there. Save the money in a bank account and you’ll have enough money to buy a new car if you ever total yours.

    ReplyReply
  28. Disagree Says:
    28

    @Dan: I totally disagree with u Dan, Amex collision is Alot easier to deal with than SP. I’m talking from experience, Iv been involved in a few accidents and Amex way easier.

    ReplyReply
  29. thanks dan Says:
    29

    I bought tickets on my SP 4 weeks ago
    do I need to purchase travel insurance?
    what am I covered for under the SP

    ReplyReply
  30. Avi Says:
    30

    FYI, Chase Fairmont offers primary CDW too.

    ReplyReply
  31. Spoke Says:
    31

    Dan,
    Do you think it’s worth it to have sapphire preferred if I have ink bold?

    ReplyReply
  32. Dan Says:
    32

    @rocky:
    No.

    @milechazzer:
    No AMEX card gives free primary coverage or coverage in Israel.

    @Novo:
    Not in my guide and not according to the reps on the phone.
    When is your guide from?

    @Mickey:
    Call.

    @Jason Smith:
    Are you kidding me?
    I pay $90 per 6 months for collision damage on my Altima and Odyssey. How long do you want me to save the $180 per year to be able to afford a totaled car?

    You’ve given lots of advice via comments that I disagree with, but this one takes the cake.

    @Disagree:
    Remind me not to drive with you 😉

    AMEX might be easier but is it worth $25 per rental (or quasi insurance fraud and taking the time to manually change your card every time at the end of a rental)?

    I’ve had 2 rental insurance bogus scratches made up by Avis and Budget in TLV.

    Didn’t have an issue getting my money back.

    @thanks dan:
    Personally I never buy travel insurance.
    SP gives trip cancellation insurance for covered reasons for free.

    @Avi:
    Don’t have that card, but good to know. SP is a much more useful card for ongoing spending.

    @Spoke:
    Definitely, they both have very strong bonus point categories that don’t overlap.

    ReplyReply
  33. samuel Says:
    33

    @dan
    My mistake. They indeed give double points for ezpass. However on ezpass at airport parking they do not give double since its considered parking and not travel expanse. Aweard no?

    ReplyReply
  34. Jason Smith Says:
    34

    Dan, I can agree with you on the $90 for 6 months, but in the New York/New Jersey area there is not a single insurance company that will give you collision insurance for that price. I just priced it right now for Hunterdon County, NJ and 1 year of collision is $600 with a $2,500 deductible and $1,400 a year with a $100 deductible (on a car with brand new value of $14,000). And it is even higher than that in New York City.

    So Dan, yes for $90 I can agree it is worth it, but I was referring to the cost of collision in the New York/NJ metro area.

    ReplyReply
  35. Dan Says:
    35

    @samuel:
    Parking gets double points as well, so yes, that’s odd.

    @Jason Smith:
    Ah yes, posting advice without saying it’s only for NY’ers is a common theme.

    However there’s good reason for that price discrepancy, because in NY metro the odds of getting in an accident are far higher than elsewhere. And you might want that coverage that much more.

    For an apples-to-apples comparison though, I carry a $1,000 deductible. And my total 6 month premium with strong liability, collision, and comprehensive for the Altima+Odyssey is $300.

    ReplyReply
  36. thanks dan Says:
    36

    if I decide not to go to Israel because of whats going on
    would I be covered under SP trip cancellation?

    ReplyReply
  37. Dan Says:
    37

    @thanks dan:
    Did you call the airline and try to cancel or rebook?

    ReplyReply
  38. thanks dan Says:
    38

    @Dan
    I did not call yet
    I booked on Alitalia do you think they will let me cancel?

    ReplyReply
  39. milechazzer Says:
    39

    How do these new trip delay, luggage protection, etc. benefits compare to the benefits on the Amex cards?

    thx

    ReplyReply
  40. Disagree Says:
    40

    @Dan: trust me, u Dnt wanna drive with me! Nor does any1 else! 🙂
    I got the money back from SP also no biggy (plus the 2x a dollar for the charges!! Lol) Just saying tht Amex is even easier.

    ReplyReply
  41. Binny Says:
    41

    If I already have a freedom card and am getting the 7% dividend, and I apply for the sapphire today would I get the 7% for the sapphire as well for the next 2 years?

    Thnx dan😄

    ReplyReply
  42. Dan Says:
    42

    @thanks dan:
    You won’t know if you don’t try.

    @milechazzer:
    Depends which AMEX cards, but generally AMEX charges extra for those protections.

    @Disagree:
    But SP is cheaper and you get more points.

    @Binny:
    If you try let us know.
    But the Freedom gets a 10% checking account dividend. The SP 7% dividend had nothing to do with a checking account.

    ReplyReply
  43. Dan's the man Says:
    43

    @milechazzer: They’re much better than most Amex card. Most amex cards just provide accident coverage (like if your plane crashes and you die or get injured you get money).

    ReplyReply
  44. Josh Says:
    44

    Does 7% dividend phase out change which card to use on a daily basis?

    ReplyReply
  45. CtownBin Says:
    45

    @Dan:
    I gotta know which insurance company you’re with! We are in Cleveland too, and are paying about $400 in 6 months for 2 similar cars to yours, with Geico. Both myself and my wife have perfect driving records. I’ve called many insurance companies to check rates, and this was the cheapest I found- who are you with that is only charging $300? Thanks!

    ReplyReply
  46. stompey Says:
    46

    Hey @Dan,

    Any idea if the primary can be used in Ireland? I know the have harder rules on CC CDW, thanks.

    ReplyReply
  47. Chuck Lowenstein Says:
    47

    You stated: “And they will give you a letter of coverage stating that you are covered in Israel so that you don’t have to argue at the rental car counter that your Chase Visa does give CDW coverage.”

    What about the MC? Doesn’t the Sapphire Preferred World MC offer the same coverage?

    ReplyReply
  48. Matt Says:
    48

    If I got the chase sapphire Preferred visa card 2 years ago 2012, once I got the bonus and waited for a year I cancelled it 2013, could I sign up and get the bonus again for this card? thanks!

    ReplyReply
  49. zlt123 Says:
    49

    Hi Dan so my quastion is like this i currently have the Saphire MC & i read on DDF that you have both the visa and the MC so I applied last week for the visa and i called Recon spoke with 3 speclist 2 superviser 2 senior speclist they all said the same thing there is no such a thing as having both i explained to tham why i need both they said i undersant but the computer wont even let him overide it its impossibe only if i close the MC can i get the visa so my Q is: What am i doing rong what sould i tell tham to convince them? also what should i do now close the MC but iam waiting for the %7 thats gonne be a big amount also if i close and open the vise will i still be eligabile for the 7%

    ReplyReply
  50. Raf Says:
    50

    Hey Dan, I don’t own a car and therefore don’t have any type of auto/car insurance. Does this mean that there’s no difference between primary or secondary coverage? (and therefore no reason to put rentals on the SP?)

    ReplyReply
  51. G Says:
    51

    Dan, I just got into an accident in NY in a rental, paid for on the sapphire preferred and I just called to file a claim and I called the claims dept and she said I don’t have primary coverage. She told me to file a claim anyway which is what I did. What do I do now to make sure they cover this and I don’t have to go through my car insurance?

    ReplyReply
  52. dfw jon Says:
    52

    so theoretically would i have to have car insurance at all? or could i be rid of car insurance and still use this benefit? just a curious point. I’m guessing the car rental places still require proof of liability?

    ReplyReply

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