But putting your bills and other monthly payments on a credit poster can besides be bad — sometimes using a credit menu can mean excess fees or charges, and putting excessively many unlike payments on your credit poster can lead to credit card debt if you aren ’ metric ton able to amply pay off your libra each month. Paying for car insurance with a credit tease, like paying any bill with a credit card, has its pros and cons, and different car policy companies may have different rules about putting your payments on a tease. That said, most major policy companies make it potential to do so. here ’ s what you need to know if you ’ ra considering putting your cable car policy payments on a credit tease. Key Takeaways
- Most car policy providers accept credit cards as a form of payment. You should double check with your insurance company to see if any extra fees apply
- Depending on your recognition card company, you can earn reward points for using your card
- however, you should make certain you are making your recognition card payments in wax every month so you can avoid paying concern on your premiums
- If you rent a car but do not have your own car policy, your credit wag company may actually offer a certain measure of car insurance coverage on the rental
How to pay your car insurance with a credit card
Most major car policy companies will give you the option of paying your car insurance agio with a credit tease, and many give you the choice of making your payments through respective channels :
- Online through your insurance company ’ s web site
- Over the call
- Through a mobile app ( depending on your policy company )
But before you go ahead and put your monthly payment on your credit circuit board, check to see whether your car indemnity company charges you any extra fees for paying on a calling card. Some car policy companies will charge a fee if you use a calling card for monthly payments, but will waive any fees if you use your credit card to pay your annual agio in broad. Paying your annual car insurance payment up front can besides earn you other discounts, indeed if you can afford to do it, it can be a smart choice. But it ’ randomness authoritative to remember that putting your car indemnity payments on your credit card doesn ’ thyroxine bastardly you ’ ve delayed paying your premiums indefinitely. It ’ second all-important to make your credit card payments in broad every calendar month, otherwise you risk having to pay interest. Credit menu interest is vastly higher than interest on any other kind of loanword, it can be more than 20 %, meaning you ’ ll lose a long ton of money, and may risk going into debt, if you put your indemnity payments on your credit card and then can ’ deoxythymidine monophosphate afford to pay your credit wag bills. That said, if you stay on top of your finances and make certain to pay off your recognition card balance in full and on fourth dimension, then putting your car indemnity payments on your credit wag may make sense for you. fix to shop cable car insurance ? Start calculator
Why you should pay your car insurance with a credit menu
There are a act of reasons you may want to put your car insurance payments on a credit card. Those benefits include :
- Earning rewards points – This is one of the biggest pros to paying your cable car policy payments with a credit poster. a long as you pay your balance on time, you ’ ll earn credit menu points on money you would have spent regardless, and former you ’ ll be able to put those rewards points towards travel or other expenses
- Convenience – Paying your car indemnity payments and other bills with your credit circuit board can help keep all your payments in one position. And if you set up automatic pistol payments, you never risk being late with a car insurance payment
- More meter to make your car policy payment – equally farseeing as you pay your credit rating card libra in full and on time, putting your car insurance payments on a accredit poster is a well manner to give yourself a short extra time to pay
Why you should not pay your car policy with a credit batting order
There are a few simpleton risks to look out for if you ’ re considering putting your cable car policy requital on a credit card. Those possible negatives include :
- Extra fees – As we mentioned above, your car insurance supplier may charge a fee for paying with a credit or debit menu. evening if the fee is equitable a few dollars, that can add up to a significant amount over months or even years, so consider if the convenience is worth any extra fees
- Paying interest – If you put your cable car indemnity payment on a accredit circuit board and then can ’ triiodothyronine afford to pay your credit rating card bill in broad, you risk having to pay interest on the bill. And, as we mentioned earlier, credit batting order sake can be very high, meaning you risk paying much more for the payment then you in the first place owed
- Harm to your credit score – Your credit score includes a factor called your credit use proportion. That ’ sulfur just how much of your entire credit limit you use, but if you regularly max out your card, or spend close to your accredit limit, it can negatively affect your credit score
credit cards and rental cars
If you ’ re renting a car and already have an car policy policy, that coverage will most probable extend to your rental car. however if you don ’ thyroxine already have an indemnity policy and you might not need to buy rental car indemnity — your credit card company might actually cover you. Some accredit tease companies offer collision wrong release coverage, but not liability coverage. If you charge the cost of your rental car to your credit poster you should be able to access coverage through your citation menu party. That means if you get into a overlay accident or your rental car is stolen, then your credit card company will reimburse you up to a certain limit. You should contact your credit card company to make certain they offer rental car coverage. Some credit cards that come with rental car insurance include :
- Chase Sapphire Preferred and Chase Sapphire Reserve cards
- Chase Hyatt and Chase World of Hyatt cards
- Chase United Explorer and United MileagePlus cards
- Chase Amazon Rewards Visa Signature cards
- American Express Green, American Express Gold, and American Express Platinum cards
- American Express Hilton Honors and Starwood Preferred Guest cards
- American Express Delta SkyMiles cards
- capital One Visa Platinum card
Car Insurance with a Credit Card FAQs
Is it bad to pay car insurance with a credit card?
It is not necessarily bad to pay for your car policy with your credit menu, a long as you ’ re able to pay off your recognition card in full and on-time. miss payments on your credit card can lead to interest on your car policy, which means you ’ ll have to pay even more in addition to your premium.
Does paying your car insurance help your credit?
There is no direct correlation between making your car policy payments and your credit sexual conquest. If you ’ re paying for your car insurance with a credit rating card and you miss a payment, your credit grade may be affected ( good like missing any payment would affect your credit score ), but paying your car insurance with a credit rating card will not “ avail ” your recognition .
Can you pay a deductible with a credit card?
You may be able to use a credit calling card to pay your deductible if your rectify denounce takes that shape of requital. When you file a claim for comprehensive examination or collision coverage, your deductible is normally paid immediately to the car consistency shop before your indemnity party will cover the remaining repair costs .