Chase Sapphire Preferred® Card Primary Rental Car Collision Benefit

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Link: Chase Sapphire Preferred® Card

On Friday I wrote about the rumor that the Chase Sapphire Preferred® Card would be eliminating the 7% annual points dividend for new card members as of July 20, 2014.

Chase Sapphire Preferred eliminating 7% points dividend

Gary broke the news this morning that Chase is indeed making a few changes to the card. Regarding the 7% annual points dividend:

  • New applicants will no longer receive the 7% dividend
  • For existing card members, the 7% annual points dividend will continue to be offered for 2014 and 2015 (the dividends are typically awarded early in the year, so the last one would be awarded in early 2016)

The 7% points dividend was a nice bonus, though I don’t think it makes or breaks the value of the card — to me the double points on dining and travel and lack of foreign transaction fees are the two greatest benefits of the card.

New Chase Sapphire Preferred perks

Gary shares the two new perks being added to the card, effective today for both new and existing card members:

  • Trip cancellation & interruption benefit increases in value from a maximum payout of $5,000 to $10,000
  • The rental car collision damage benefit goes from being secondary to being primary

Primary rental car collision damage waivers are awesome — it basically means that the insurance offered by the card supersedes all other rental car coverage.

This is a pretty rare card benefit, and I can only think of a few other personal cards that offer the benefit. On the business side, the Ink Plus® Business Credit Card and Ink Bold® Business Charge Card both offer this benefit as well.

Car rental insurance comes in handy when your left mirror turn signal stops working 😉

Bottom line

Based on my personal spend patterns, am I happy to see the 7% dividend go away? Of course not.

I think it was a nice thing that kind of provided the extra “edge” over other cards. But I can also see from Chase’s perspective that they may have been cannibalizing some of their other business with that.

I’ve always thought of the Chase Sapphire Preferred as a “super card” — if I could just recommend one personal card to someone, it would probably be it.

In addition to having a great points earning structure, it’s great to have other benefits that set the card apart. For me two of those benefits would be no foreign transaction fees and great car rental coverage, and in that sense I think the Chase Sapphire Preferred Card is even more unbeatable now.

Link: Chase Sapphire Preferred® Card

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  1. @ Lucky – what are your thoughts on the benefits of Chase United Mileage Plus Card or the old United Chase Presidential Plus?

  2. @ Lucky – I think they have $10k trip cancellation coverage and primary coverage for rental cars.

  3. @ TravelingDDS — Well the Explorer Card was unique in that it offered primary collision coverage, but aside from that didn’t have a unique value proposition, in my opinion. You can’t apply for the Presidential Plus Card anymore, though I think the United Club Card is probably the most unique card in the United portfolio. 1.5 miles per dollar is a pretty good return, though that assumes you also get value out of the United Club membership, since it’s not a cheap annual fee.

  4. Since Gary “broke the news”, why not just link to his blog? Oh, silly me, you would then miss another opportunity to pimp this card yet again.

  5. You have to be careful if you use your ink card for rental cars that it is a business trip or otherwise you might not be covered as I understand their card agreement.

  6. Chase executives have said publicly they don’t care if one of their cards keeps charges from being put on another, as long as it’s a chase card that is being used.

  7. @ Lucky, do you know yet if the primary rental coverage is effective immediately? Also, is the primary coverage with Chase better, worse, or about the same as the Amex Premium rental car coverage program? I know Amex charges for coverage per rental and CSP seems to be “free,” but how do the coverages compare? Thx

  8. @ LindaK — My understanding is that it’s effective immediately. I believe the AmEx Platinum offers secondary coverage as the standard offering, so the Chase Sapphire Preferred has better coverage.

  9. @ Lucky, thanks for the info, and sorry for the confusion, I should have been more clear. In addition to standard secondary credit card insurance coverage that Amex offers, they have a voluntary, pay per rental primary coverage program called Premium Car Rental Protection. Amex cardholders can purchase this insurance per rental as long as you pay for the rental using your Amex card. CSP’s primary rental coverage may be just as good as Amex’s, but for no additional charge per rental.

    More info here for Amex:

  10. @Lucky I think you misread LindaK’s question. It asked about AmEx Premium rental car coverage, an opt-in program that provides primary coverage for a per rental fee, not AmEx Platinum coverage.

  11. @ LindaK — Whoops, sorry I missed that. Haven’t seen the exact terms yet for Chase’s new coverage, so not 100% positive. I do believe that the AmEx premium insurance has the benefit of covering not just damage to your car, but a higher amount of damage to other cars as well. Let me do some research on that.

  12. Curious about the Trip interruption & cancelation benefit. If you purchase a flight on the card, and then cancel the card before the trip, is that trip still covered by this benefit?

  13. Primary coverage is extremely nice because it eliminates the need to make a claim against your personal insurance and the risk of an increase in your premium. But be aware that the rental company can make a claim against you for not only for the damage to the car but also loss of use (the time the car was out of service getting repaired) and diminished value (the reduction in the worth of the car even after it has been repaired because it was in an accident).

    The former is only sometimes covered sometimes not and to the best of my knowledge the latter never a part of the insurance that Visa, MC and Amex provide. So in the event of an accident you could still be facing some hefty bills or a fight over the chargers.

  14. Correct me if I am wrong. The difference between the auto coverage of the Explorer card and the sapphire card is that the Explorer card also cover the car or property that I hit, that is collision.coverage.

  15. @ Kay — I’m pretty sure that none of the cards offer liability protection (LDW), but both of these offer comprehensive damage waivers (CDW).

  16. Ben, do you have any further information on whether or not it needs to be a business rental in order for primary coverage to be in effect when using the ink card?

  17. @ HoKo — Technically it does, since technically a business credit card can only be used for business purchases. That being said, not sure how they’d verify that in practice.

  18. Lucky, if I have booked the rental car via chase ultimate rewards using the fairmont card, could I use the chase sapphire preferred at the time of the rental to pay for the other fees, and get primary coverage via the chase sapphire preferred or do you think I should just stick to the fairmont card when I arrive at the check in counter?

  19. @ Paul — Hmmm, you have to pay for it in full with the Chase Sapphire Preferred, so I’m not positive, unfortunately. Sorry.

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