The Chase Sapphire Preferred is a great beginner travel card. It has a big 60,000 Ultimate Reward point sign-up bonus and has many travel protections to justify its $95 annual fee.
Chase Sapphire Preferred Card Information
Application Link: Chase Sapphire Preferred
The Sapphire Preferred is subject to two important application rules:
- The 5/24 Rule– you will be auto-denied if you have opened up 5 or more personal credit cards in the last 24 months.
- Sapphire Rule– You will be auto-denied if you currently have a Sapphire Preferred or Sapphire Reserve, or received a new cardmember bonus on the Sapphire Preferred or Sapphire Reserve in the past 48 months. If you currently have one of the Sapphire cards, you can product change it to a Chase Freedom or Freedom Unlimited, wait 48 months from your Sapphire bonus, and re-apply for one of the Sapphire cards.
Current Sign Up Bonus: 60,000 Ultimate Rewards points.
Recommended Bonus: At least 60,000 Ultimate Rewards points.
Annual Fee: $95
- 5x points on Lyft through March 2022.
- 2x points on travel and dining.
- 1x points on all other purchases.
Chase Sapphire Preferred Benefits
The Chase Sapphire Preferred has many benefits to justify its $95 annual fee, including:
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.
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.