The Chase Sapphire Preferred offers nice travel protections such as trip delay insurance, rental car insurance, and trip cancellation insurance.
Chase Sapphire Preferred Card Information
Application Link: Chase Sapphire Preferred.
Current Sign Up Bonus: 60,000 Ultimate Rewards points.
Recommended Bonus: At least 80,000 Ultimate Rewards points.
Annual Fee: $95
- 5x points on travel booked through Chase Ultimate Rewards.
- 5x points on Lyft through March 2022.
- 3x points on dining, including eligible delivery services, takeout, and dining out.
- 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs).
- 3x points on select streaming services.
- 2x points on travel.
- 1x points on all other purchases.
Anniversary Bonus: Chase awards a 10% bonus on your spending during the previous year when you renew your Sapphire Preferred card. For example, if you spent $25,000, you would receive 2,500 extra points.
Chase Sapphire Preferred Benefits
The Chase Sapphire Preferred has many benefits to justify its $95 annual fee, including:
$50 Hotel Credit- Cardholders are eligible for a $50 hotel credit each account year when you book a hotel through Chase Ultimate Rewards.
Primary Rental Car Insurance: This coverage pays for any damage to your rental car when you pay for your rental using your Sapphire Preferred card. You still need to maintain liability coverage, but this benefit can save you thousands of dollars if something accidentally happens to your rental.
Trip Delay Insurance: This coverage reimburses you for up to $500 in expenses such as hotels, food, and transportation in the event that your flight is delayed for 12 hours or requires an overnight stay. This is one of my favorite benefits because it covers weather delays, which airlines do not. So while people are sleeping at the airport, you can enjoy a nice hotel and a four-course meal.
DoorDash’s DashPass- DashPass gets you free delivery and reduced service fees via DoorDash on orders $12 or over. DashPass is normally $9.99 per month, so this is a nice perk for people who like to get food delivered.
Redeem Points at 1.25 Cents– Ultimate Rewards points can either be transferred to airline or hotel programs or redeemed directly for travel. The standard rate towards travel is 1.0 cents per point, but with the Sapphire Reserve, you can book travel for 1.25 cents per point.
Trip Cancellation and Interruption Insurance: This benefit covers up to $10,000 per person and $20,000 per trip of prepaid, nonrefundable travel expenses if you need to cancel a trip short because of a covered issue such as an illness or accidental injury by the covered person or their immediate family.
Baggage Delay Insurance: This coverage reimburses you for the purchase of essential items if your baggage is delayed more than 6 hours, and allows you can spend up to $100 per day for a maximum of 5 days.
Lost Luggage Reimbursement: If a common carrier loses your bag, you can seek reimbursement up to $3,000 per person for each trip including up to $500 per person for jewelry, cameras, and other electronic equipment.
Purchase Protection: This 120-day coverage protects your purchases from theft or damage up to $500 for each claim and up to $50,000 for each account. For example, if your new laptop was stolen or damaged within the first 120 days, you could seek reimbursement from Chase.
Other Benefits: Extended warranty, no foreign transaction fees, roadside dispatch (pay per use), and travel accident insurance.
We recommend you read the full benefits guide to familiarize yourself with the limits of each benefit and the requirements to make a claim. You generally need to use this card to purchase your travel to qualify for most of the travel protections.
Redeeming Ultimate Rewards Points
You can either cash out Ultimate Rewards with the Sapphire Preferred card at 1.25 cents per point or you can transfer points to the following airline and hotel partners:
Advantages of the Sapphire Preferred
Lots of Travel Protections– The Sapphire Preferred has great travel protections for only $95 a year. A single claim could easily pay for your annual fee. For example, if you had a single overnight flight delay, you could get reimbursement of up to $500 per covered person for hotels, food, and transportation.
Disadvantages of Sapphire Preferred
Sapphire Reserve is Better for Frequent Travelers– The Chase Sapphire Reserve is a better option for people who travel at least 4 times per year. The Sapphire Reserve has a $550 annual fee, but it comes with a ton of benefits including a $300 easy to use travel credit, lounge access, a $60 DoorDash credit, Global Entry credit, 3x points on travel and dining, similar or better travel protections, and points can be cashed out at 1.5 cents each instead of Sapphire Preferred’s 1.25 cents each.
- Pro Tip: You can product change the Sapphire Preferred to a Sapphire Reserve after one year. The Sapphire Preferred is a good starter card for those worried about justifying a $550 annual fee.
I have the Sapphire Preferred and it is one of my favorite cards. It is a good combination of travel and purchase protections with the ability to transfer points to great airline and hotel partners.
Frequently Asked Questions
What is great about the Chase Sapphire Preferred?
The Sapphire Preferred has several great benefits including trip delay insurance, primary rental car insurance, DoorDash's DashPass, trip cancellation insurance, baggage insurance, and you can transfer points to airline and hotel partners.
What counts as travel on Sapphire Preferred?
The purchases that Chase counts as travel include
- Car rental agencies
- Cruise lines
- Travel agencies
- Discount travel sites
- Passenger trains
- Toll bridges and highways
- Parking lots and garages
The purchases that Chase does not count as travel:
- Real estate agents
- Websites or owners that rent vacation properties
- In-flight goods and services
- On-board cruise line goods and services
- Sightseeing activities
- Tourist attractions
- Merchants within airports
- Merchants that rent vehicles for the purpose of hauling
- The purchasing of points or miles
How long does it take to get approved for Chase Sapphire Preferred?
If you are not approved instantly, it can take a few days to get approved. You can check your application status by calling 1-888-270-2127.
The 7-10 day status message typically means you have been denied, but a 2 week status message means you will likely be approved.
How to downgrade Chase Sapphire Preferred?
You can downgrade your Chase Sapphire Preferred to a Freedom or Freedom Unlimited by calling customer service at 1 (800) 432-3117. or sending a secure message from your Chase online account and request a product change.
How do I upgrade my Chase Sapphire Preferred to the Sapphire Reserve?
You can upgrade to the Reserve card after you have had the Sapphire Preferred for at least a year by:
- Calling the number on the back of your card.
- Requesting an upgrade.
- Potentially move your credit limits from other cards to the Sapphire Reserve.
How to earn points with Chase Sapphire Preferred?
All of your spending earns Ultimate Rewards points, which can be transferred to airline and hotel programs, or you can redeem points for travel with the Sapphire Preferred at 1.25 cents per point.