I'm not canceling my Chase Sapphire Reserve, even though it now costs $795

When Chase announced that the annual fee for the Chase Sapphire Reserve® (see rates and fees) would increase from $550 to $795, I experienced a moment of sticker shock. This is nearly a 45% increase, and while I've seen various credit card fee hikes over the years, this one felt particularly steep. 

However, after evaluating how I actually use the card and crunching the numbers, I've decided to keep it. Here's why the $795 annual fee doesn’t deter me and how I plan to continue benefiting from the travel rewards card I’ve held the longest.

The Chase Sapphire Reserve’s $300 annual travel credit has been one of the most valuable card benefits from day one. The credit resets each cardmember anniversary and applies automatically to eligible travel purchases, from flights to hotels, car rentals, transit, parking, rideshares, and more.

The travel credit works on almost any travel-related purchase, making it a lot more flexible (and therefore more valuable) than other cards’ credits that only cover specific purchases like baggage fees or seat selections. 

This year, I've used it on airport parking, Bolt rides in Portugal, and a car rental in France. The $300 in credits brings my effective annual fee down to $495 before I even consider the card's other benefits.

This benefit alone nearly covered my annual fee this year. When I returned a rental car at Paris Charles de Gaulle Airport in August, I was hit with a charge of over €1,000 for a tiny windshield chip I hadn't even noticed. The rental company insisted that I was responsible, and without coverage, I would have been stuck paying that amount.

Instead, I filed a claim with my Sapphire Reserve primary rental car coverage, submitted my documentation, and was reimbursed within a few weeks. The entire process was straightforward and easier than I had expected.

This benefit is especially valuable because it offers primary coverage rather than secondary coverage. This means you won’t have to file a claim with your personal auto insurance first, which can help you avoid additional paperwork and potential rate increases. The coverage includes protection against damage, theft, and loss of use charges, up to the actual cash value of most rental cars.

Even if you never file a claim, the math is in your favor. Rental car companies typically charge $15 to $30 per day for their collision damage waiver. If you rent a car three times per year, for a week each time, you could pay between $315 and $630 in rental car insurance charges. By declining that coverage and paying with your Sapphire Reserve, you're already ahead, without even factoring in all the card's other benefits.

I rent cars frequently enough that this single benefit justifies a significant portion of my annual fee. After my windshield incident, I'm even more confident in that assessment.

One of the new perks of the Sapphire Reserve card is an annual $300 statement credit for dining reservations made through Sapphire Reserve Exclusive Tables on OpenTable. The credit is divided into two $150 semi-annual periods, and you need to activate it.

At first, I was skeptical because dining credits often apply only to ultra-expensive spots that I would never visit. However, after exploring the list of eligible restaurants on OpenTable, I discovered restaurants that I would actually go to: neighborhood bistros, upscale Italian venues, Mexican restaurants and a local steakhouse. There are places where you can enjoy a nice dinner without spending hundreds of dollars. I appreciate that the new credit won’t make me increase my spending just to make it useful.

The Sapphire Reserve now offers monthly DoorDash promotions that include a $5 restaurant credit and two $10 credits for everyday essentials each month, totaling $300 annually. You need to activate this benefit and link your DoorDash account to your card (available through Dec. 31, 2027).

While subscription-based credits can feel gimmicky, I’ve discovered a surprisingly enjoyable way to use them: by sending spontaneous gifts to friends. If a friend mentions they’re having a rough day, I can send them a pint of ice cream. When my sister is home sick, I can send her soup or the groceries she needs.

What would typically feel like an extravagant gesture (who casually sends DoorDash gifts to friends?) becomes completely free with credits I might otherwise let go to waste. The fuzzy feeling I get from sending gifts makes this benefit worth far more than the $300 annual value.

Not everyone travels enough to justify a premium credit card with a $795 annual fee. Luckily, you have options.

Consider downgrading instead of canceling

You can product change your Sapphire Reserve to the Chase Sapphire Preferred® Card (see rates and fees), which carries a much more manageable $95 annual fee. You'll keep your account history and credit line, and your Chase Ultimate Rewards® points remain intact with transfer capability to airline and hotel partners.

The Sapphire Preferred earns 5X points on Chase Travel purchases, 3X on dining and select streaming, and 2X on other travel. You'll lose benefits like the travel credit and lounge access, but this is the route I recommend for people who don't travel frequently but still want transferable points.

To downgrade, simply call the number on the back of your card and tell the representative you want to product change to the Sapphire Preferred. It only takes a few minutes, and you'll usually receive your new card in about a week.

Consider a different premium card

The Capital One Venture X Rewards Credit Card is a great option for those looking for a premium card with a lower annual fee. At $395 annually, it's almost exactly half the cost of the Sapphire Reserve. You'll get a $300 annual travel credit through Capital One Travel (similar to the Sapphire Reserve), 10,000 anniversary bonus miles (worth $100 in travel), and participating Priority Pass lounge access. The card also provides access to Capital One lounges, which are excellent.

The Capital One Venture X earns 10X miles on hotels and rental cars booked through Capital One Travel and 5X on flights booked through Capital One Travel. For everything else, you'll earn 2X miles. Capital One miles transfer to 22 airline and hotel partners at a 1:1 ratio, giving you flexibility similar to Chase Ultimate Rewards® points.

However, it's worth noting that Capital One's transfer partners are slightly less straightforward than what Chase offers. Nevertheless, for many travelers, the Venture X offers considerable value at around 50% of the cost of the Sapphire Reserve.

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