Some providers allow you to pay for your car insurance with a credit card. This payment method has many benefits, especially if you pay off your card every month and/or your card has reward features. Check with your insurance provider to see what's needed to switch to this payment method.
Can I pay for my car insurance with a credit card?
In most cases, insurance companies allow you to pay your auto insurance premiums with your credit card.
Choosing to pay with a credit card has many benefits, including raising your credit score and earning rewards points (if your card has that feature).
However, if mishandled, you may find yourself in debt.
Some insurance companies charge an extra fee if you're paying for your premiums with your credit card, so contact your insurance provider to see if a fee applies.
Allstate offers the Easy Pay Plan setup that saves you up to 5% on certain policies. Contact Allstate for a quote, today!
Benefits of paying for insurance with your credit card
There are many benefits to using your credit card to pay your insurance premiums, including:
- Pay less on your premiums by getting your annual auto insurance rate paid in full. This option is cheaper, and you won't have to worry about making monthly payments.
- Some credit cards offer rewards (cashback/miles) on every purchase, including paying for your auto insurance premium.
- Build your credit score if you continue to make your monthly payments on time.
The drawbacks of paying for insurance with your credit card
There are drawbacks when paying for your premiums with your credit card, including the following:
- If you can't make your monthly credit card payments, you're subject to several fees.
- Some credit card companies charge convenience fees if you pay for your bills with your credit card.
- You quickly get into debt if you don't manage your payments correctly.
How do I pay for my car insurance with a credit card?
There are specific steps you need to take to set up your credit card payments with your auto insurance provider. Ask your insurance provider if any extra fees apply before you set up this payment plan.
Set up your credit card payments in one of these three ways:
- Online: Via your insurer's website
- Over the phone: Contact your insurer over the phone
- Mobile app: Many insurance providers now have mobile apps. Download the app and update your payment method
3 things to consider before using your credit card to pay for auto insurance
- Save money and earn points by using your credit card to pay off your insurance premiums. This option is incredibly beneficial, provided you handle your payments wisely.
- If you've got a track record of unpaid debt, it's better for you to continue paying for your premiums with your debit card. You don't want your credit card interest to increase or your credit score lowered.
- Not all insurance companies allow you to pay with your credit card, but the majority do. Speak to your provider to know more about this payment option.
Save money and pay with your credit card today!
Some insurers provide you the option of paying with your credit card with no added fee. To find the best deals and most affordable monthly premiums, fill in our form below.
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