Million Mile Secrets reader, John, commented:
Do you have a view on whether purchase protection (and other similar benefits such as car rental insurance, warranty extension, etc.) is significantly different on American Express cards versus the Chase Sapphire Preferred? I have an easier time using Chase Ultimate Rewards points than AMEX Membership Rewards points.
Great question, John!
We talk a lot about how you can earn Big Travel with American Express cards and the Chase Sapphire Preferred card. But they also come with insurance that can cover your purchases, belongings, and travel plans when things go wrong.
Let’s take a look!
What’s Covered?
When you pay for your trip or purchase a new item using your Chase Sapphire Preferred or American Express card, you may be able to get reimbursed for your expenses if things go wrong.
Here’s a quick comparison of the coverage you get with these cards.
| Coverage | American Express Cards | Chase Sapphire Preferred |
|---|---|---|
| Purchase Protection | • Covered up to 90 days from the date of purchase if it's stolen, accidentally damaged, or lost. • Up to $1,000 or $10,000 per occurrence (depending on the card), with a maximum of $50,000 per card member account per calendar year • Not all cards have the same coverage, click here to see what your card covers • See my post on AMEX Purchase Protection for more details | • Covered up to 120 days from the date of purchase in the event of theft, damage, or involuntary and accidental parting with property • Up to the amount charged to your card, with a maximum of $500 for each claim and no more than $50,000 per account • See the Chase Sapphire Preferred Benefits Guide for more details |
| Extended Warranty | • 1 extra year added to warranty of 5 years or less • Up to the amount charged to your card, with a maximum of $10,000, and no more than $50,000 per calendar year • Not all cards have the same coverage, click here to see what your card covers | • 1 extra year added to warranty of 3 years or less • Up to the amount charged to your card less shipping and handling fees, with a maximum of $10,000, and no more than $50,000 per calendar year • See the Chase Sapphire Preferred Benefits Guide for more details |
| Primary Rental Car Insurance | • Enroll for free in the American Express Premium Car Rental Protection program • But you’ll pay ~$25 (~$18 for California residents) per rental for up to 42 consecutive rental days (30 consecutive rental days for Washington State cardholders) | • Cardholders covered when you rent a car with your card and decline the car rental agency's collision damage waiver • See the Chase Sapphire Preferred Benefits Guide for more details |
| Delayed Baggage | None | • If your baggage is delayed for more than 6 hours, you could be reimbursed for emergency purchases of essential items (i.e. clothing, toiletries, cell phone charging cables, and more) • Up to $100 per day for a maximum of 5 days • See the Chase Sapphire Preferred Benefits Guide for more details |
| Lost Luggage | • Up to $1,250 (or more) per person per trip for loss of carry-on baggage • Up to $500 (or more) per person per trip for loss of checked bag • Up to $250 per person per trip for loss of high risk items (i.e. jewelry & electronics) • Not all cards have the same protection, click here to see what your card covers | • Covers the cost to repair or replace lost luggage and personal items inside • Up to $3,000 per person each trip with a limit of $500 for items such as jewelry and electronics • See the Chase Sapphire Preferred Benefits Guide for more details |
| Trip Delay Protection | None | • If your trip is delayed for more than 12 hours, you could be reimbursed for up to $500 per ticket for reasonable expenses (meals, lodging, toiletries, medication, and other personal use items) • See my post on the Chase Sapphire Preferred card's Trip Delay Insurance for more details • See the Chase Sapphire Preferred Benefits Guide for more details |
| Trip Cancellation & Interruption Insurance | None | • Up to $10,000 for per occurrence, with a maximum of $20,000 per incident, if you pay for your trip with points you'll get a value of 1 cent per point • No more than $40,000 per 12 month period • See the Chase Sapphire Preferred Benefits Guide for more details |
Make sure you read the terms carefully, so you know what is and isn’t covered on your card.
Which Card Should You Use?
When Your AMEX Card Might Give You the Best Coverage
Link: AMEX Purchase Protection Terms & Conditions
Link: AMEX Extended Warranty Terms & Conditions
Link: AMEX Premium Car Rental Protection Program
Link: AMEX Lost Luggage Terms & Conditions
If John’s buying a big ticket item, like a laptop or TV, he might consider paying with an American Express card. That’s because you’re covered up to $10,000 per occurrence with purchase protection (maximum $50,000).
If he pays for his laptop with the Chase Sapphire Preferred, he’d only be reimbursed for up to $500. And this might not cover his costs.
However, keep in mind that some AMEX cards only cover your purchases up to $1,000 per incident. You’ll only get the extra $10,000 coverage with these cards:
- Premier Rewards Gold Card from American Express
- The Platinum Card® from American Express
- Delta Reserve Credit Card from American Express
- AMEX Rewards Plus Gold
- AMEX Ameriprise Gold
- AMEX Fidelity Gold
Also, you can get the extra year of coverage on 1 to 5 year manufacturer warranties with your AMEX card. The Chase Sapphire Preferred will only give you another year on up to a 3 year manufacturer warranty.
When the Chase Sapphire Preferred Is the Way to Go
Link: Chase Sapphire Preferred
Link: My Full Review of the Chase Sapphire Preferred
Link: Chase Sapphire Preferred Benefits Guide In most other situations the Chase Sapphire Preferred is likely a better choice.For purchases of $500 or less, like cell phones or printers, the Chase Sapphire Preferred protects your purchase from theft, damage, and accidental loss for 120 days after your purchase. That’s 30 days more coverage than you’ll get with your AMEX card.
The Chase Sapphire Preferred really stands out from AMEX cards when it comes to travel insurance.
When John rents a car, he’d have to enroll and pay ~$25 to get primary rental car insurance with his AMEX card. But he can get this coverage for free just by paying for his rental with the Chase Sapphire Preferred and declining the collision damage waiver.
And if his luggage is lost he can be reimbursed for up to $3,000 per person ($500 limit on jewelry and electronics), which is more than double the coverage he’d get with some American Express cards.
Plus, with the Chase Sapphire Preferred you get protection for delayed bags as well as travel delays, interruptions, and cancellations, which isn’t covered at all with AMEX cards.
Bottom Line
The Chase Sapphire Preferred and AMEX cards offer insurance for new purchases and travel mishaps. Which card offers better coverage depends on your purchase.
Cards like the AMEX Premier Rewards Gold, AMEX Platinum, and AMEX Delta Reserve are great for big purchases. When you pay with your card, you could be reimbursed up to $10,000 per incident (maximum $50,000 per calendar year).
But the Chase Sapphire Preferred will give you a longer coverage period of 120 days on purchases of up to $500 such as cell phones.
And the Chase Sapphire Preferred card is likely better choice for travel expenses. That’s because you get free primary rental car insurance. With AMEX you’d have to pay ~$25 per rental!
Plus, you’re covered for things like baggage delay, trip interruptions, delays, and cancellations, that you won’t get with AMEX cards.
Thanks for your question, John!
Have you filed a claim with Chase Sapphire Preferred or AMEX card? I’d love to hear about your experience!