Update 2: This change only affects the personal version of this card.
Small update: As some people point out the loss of 10,000 miles after $25,000 in spend is a big loss as people are spending $25,000 on this card for the PQD status waiver.
Chase has announced that they are making changes to the United Explorer card, these changes will go into effect on June 1st, 2018 (official notices are being sent out, but this comes directly from Chase so the information is confirmed). All current card members will automatically be upgraded to the new card at launch and anybody who applies between today and June 1st, 2018 will also be upgraded. The changes are as follows:
- Card will earn 2 United miles per $1 spent on hotel stays and restaurant purchases (this is in addition to the 2 cardholders already receive on United purchases)
- 25% off in flight purchases when using your card (including WiFi and food/beverages)
- Addition of $100 Global Entry/TSA PreCheck credit
- Removal of 10,000 miles after $25,000 in spend
- Removal of return protection/price protection benefit (purchase protection remains)
- Annual fee stays the same at $95
- Other standard benefits remain the same:
- 2 miles per $1 spend with United Airlines
- 1 mile per $1 spend on all other purchases
- Last seat availability
- Miles don’t expire
- Free checked bag when you pay with card (for 2 people)
- Priority boarding
- 2 Club passes per year
- No FX fees
Chase states the vast majority of card members will earn more miles under the new program despite the removal of 10,000 miles after $25,000 in spend due to the extra 2x mile categories. Other cards earn up to 4% cash back on restaurant purchases, so you’d need to value United miles at over 2¢ each for this card to be a better option. Chase already offers 2x hotel points per $1 spent on the Sapphire Preferred and 3x on the Chase Sapphire Reserve, other card issuers also offer categories bonuses on hotel purchases as well so that addition is not huge either.
It seems every card comes with Global Entry/TSA PreCheck, I’d be surprised if most readers don’t already have it (though you can use it for someone else). The addition of the 25% discount on in flight purchases is nice and unlike the Citi American Airline cards this does cover WiFi purchases. The removal of the 10,000 mile bonus shouldn’t really matter as putting mass amounts of spend on this card has never really made sense anyway, you’d be better off putting that on a card that earns at a high rate on all purchases.
The biggest loss is something we’ve already discussed and that’s the loss of return protection and price protection. Chase states that less than 0.2% of card members currently use these benefits (on this portfolio). The problem with that type of analysis is that this is an insurance benefit, you’d hope most cardholders aren’t using it. Insurance is as much about peace of mind as it is about actually filing a claim and using the benefit. I’d also argue that it’s possible a lot of cardholders simply don’t know that the benefit exists.
I’d expect that use rate to be much higher on Chase branded cards such as the Chase Sapphire Preferred/Chase Sapphire Reserve and even higher on cards that people are using as their daily drivers such as Chase Freedom Unlimited or Chase Freedom. The truth is that administering this benefit has likely become too expensive due to automated claims from things like Earny. If that’s the case then ideally Chase would replace those benefits with something similarly useful. If you look at these changes without the price protection/purchase protection removal I’d say they are a net gain for cardholders, but only slightly so.
[Updated]
No, you just get the $75 reimbursed.
I’m thinking out loud here…. if a person lives in a United hub, and nearly always flies on United or Lufthansa, don’t these changes to the Explorer card make it almost the same as the Sapphire Preferred? Dining and hotel earnings (2x) will be the same on both cards. Airfare earnings (2x) will be the same if purchased from United (and I assume that includes Lufthansa airfare purchased through United). Many of the insurance benefits will be the same. Why would someone want to have both cards other than for purchasing airfare from other airlines (in which case the CSP has better rewards)?
For the past few years I have not purchased trip cancellation insurance because this card offered up to $20,000 coverage (for two of us)….for a trip abroad that i plan myself, this was more than adequate, and I never filed a claim. This year I may have cancel or interrupt my trip to due to a sick family member. the new card will only pay $6000 per trip – no matter how many people are traveling, and only seems to include airfare….not hotel, rental car, etc. as in the past. We are due to leave before the June 1 conversion date, but if we need to interrupt our trip and come home early, I guess I will fall under the new policy. I would have bought separate travel insurance had I know this when i booked the trip in November of last year. I, too, used the 10,000 extra miles per year. I have more reward points for restaurants with the CITI card.
Lila,
I saw exactly the same issue with the Trip Cancellation insurance. Prior it was $10,000 per person and now it looks to be like it is $1500 per person and that is limited only to flights and cruises (railroads other common carriers). The $6000 overall limit looks to me like it would be $1500 per person for up to 4 people. This is a very limited benefit.
I agree with other commenters that the rental car insurance was a great benefit and I have also found that the Trip Cancellation benefit was also quite valuable. It looks like it is gutted.
I think the rental car insurance remains unchanged. See Doc’s comment above.
The business version already earns 2x on restaurants, office supplies and gas stations. So it will be harder to claim it’s a net gain if they remove the 10k bonus – depending what they add instead, I suppose.
Just received the letter in mail outlining the changes. There is this bit:
‘you have the opportunity to earn 4,000 bonus miles if you spend $10,000 – $24,999 on purchases that post to your account by 5/31/2018’
What is the return address? I (might have) saw it in my USPS Informed Delivery but it didn’t come in the mail…I hope it’s not a shutdown letter. Also is your name in bold?
PO Box 17198, Williamgton, DE
I don’t understand the 2nd question. The documents are generic with my name and address printed for delivery.
I got offer from “mileage plus dining”
https://dining.mileageplus.com/
as follows:
1) 1000 miles on your first dining of $25 or more
2) 1000 miles when you spend $100 or more
Not sure if this is specific offer.
Has anyone heard/read how this will affect the United MP Club card?
I have this question, too. My Explorer card started out as a Club card, and I downgraded in 2016 when the Sapphire Reserve first came out. If they bump the earnings on the Club card, it *might* be worth my while to upgrade the Explorer back to Club and downgrade the CSR.
I have been putting $25k on this card annually not only because of the 10k extra points but also the PQD waiver. With the waiver, I can fly other partners and get the PQM I need without worrying about not getting enough PQD.
“The biggest loss is something we’ve already discussed and that’s the loss of purchase protection and price protection.” But the bulleted list says ‘purchase protection remains’?
It was a transcribing error, let me fix that.
Is the signup bonus going to remain the same?