Sunday, July 20th, 2014, 12:17 am
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)