Which car insurance companies take credit cards?
Major insurance companies will accept credit cards — such as Visa, Mastercard, and American Express — as payments for insurance premiums. The total annual insurance cost can be as low as 20%, as many insurance companies offer discounts on annual premium payments.
Here are the best insurance companies for cars accepting credit card payments. If yours isn’t included on this list, search for an insurance quote that includes the rates for insurance and payment methods that best suit your budget and requirements.
- State Farm
- Travelers
- Farmers
- Liberty Mutual
- Allstate
- Progressive
- USA
- Nationwide
- Geico
Quick tip
Be sure to inquire with the insurance company to determine how much they charge processing or convenience fees when using a credit card. The fees vary between 1.5 to 3.5 percent.
What are the disadvantages of paying the bills of car insurance companies with a credit card?
Rates of interest: If you don’t pay your credit card balance each month, you may get charged interest for the amount. While certain credit card companies provide zero interest for a certain time, most cards offer interest rates that range from 15 percent and 26 percent.
Negative impact on the credit rating: Using more than 30% of your credit limit could affect the credit rating. Your credit score can decrease if you fail to make payments to the credit card.
Additional fees: Some insurers may charge processing or convenience charges when you pay with credit cards. These fees can be significant enough to cancel any discounts you might receive when paying your insurance using a credit card.
A higher balance on your credit card:Â Some financial experts recommend keeping your credit utilization below 30 percent of the credit limit to limit the amount of balance on your credit cards. Anything above 30% may negatively impact your chances of being able to get a mortgage, buy cars, or the renting of an apartment.
What are the advantages of paying the bills of car insurance companies with a credit card?
Pay your bills promptly: Automating payments from your credit card will guarantee that your car insurance premiums are due on time each month.
The convenience: If you pay the annual premium for car insurance in full, it’s one less bill to consider each month. You can also eliminate the stress of paying monthly premiums by making automatic payments using cards that you can charge.
Rewarding yourself: Love to travel? A few of the top cards for travel allow you to earn points on hotels, airfare, and restaurants when you make certain purchases, including insurance for cars. Certain cards allow you to redeem points towards Amazon purchases or cash back.
Discounts when you pay in the full amount: Using a credit card to pay for car insurance can simplify paying your annual premium in full, reducing the amount you have to pay each month.
How To Make Payments to Car Insurance Companies From Credit Cards in 2022
If you decide to cover your car insurance using a credit card, the initial step should be to get in touch with the insurance company. Ask them to allow you to pay your insurance premium using a credit card. Ask if there are any additional charges when paying using cards.
Certain insurance companies allow you to pay your premiums without charges on your credit card, but only when you pay the annual premium in the full amount. It might be beneficial to pay your entire annual cost, as certain insurers will give you discounts for paying the entire year in advance.
There are many payment options to pay your charges using a credit card
Paying monthly: If you cannot manage to pay for your annual billed car insurance rate with your credit cards, then you can pay your monthly premiums by auto instead. Make sure your insurance company does not charge credit card transaction fees.
Mobile application Many insurance companies now have mobile apps available that allow you to settle your bills, make automatic payments, and access your insurance card’s digital version whenever you require it.
Phone: If you prefer talking to someone instead of paying on the internet, you can contact the billing department of your insurance company and provide them with the credit card number on the phone.
Pay in whole: Paying your annual premium in full can aid you in reducing the cost of car insurance. This could also allow you a few days to pay off your debt. Paying off your balance every month, or at the very least by using a credit card with low interest, can help you save more on interest than you’re saving by paying an insurance premium annually.
Which should you choose, paying with debit cards or credit cards?
A debit card is different from a credit or debit card since it is directly connected to your account at a bank. If you use your debit card to purchase something, the funds for the transaction are taken directly from your account at the bank.
In contrast, the moment you pay using your credit card, the amount you pay for the transaction will be debited against the credit line, which you’re accountable to pay in the future. Making payments on your car insurance using a credit card can be beneficial as it gives you more time to pay for your invoice.
But, paying for your car insurance using a credit card could be a problem when your credit card comes with a high-interest rate or you’re having trouble paying your bills in time. If that’s the situation, then debit cards could be the better choice.
Frequently Asked Questions
Are you able to make use of a credit card to cover the cost of rental car insurance?
If you use the credit card you have to pay for cars, you might not need to buy an additional insurance for your rental vehicle. A lot of credit cards offer insurance protection for rental vehicles.
If the car you rent is damaged, vandalized, or stolen, Your credit card might offer collision damage insurance (CDW) to help cover the cost. Be aware that credit card companies don’t offer the insurance required for liability for rental cars.
The coverage limits on rental car insurance and credit card policies can differ. Suppose you’re looking to get greater coverage. In that case, you can pay for the rental car using any top credit cards to rent car insurance that provides primary insurance when you have a claim, rather than secondary insurance.
Do you have the option of paying deductibles by credit card?
If the repair shop you use accepts credit card payments, you can pay for the deductible part of your covered repairs by credit card.
In certain instances, you might have to pay the premium directly to your insurance company. If your insurance provider accepts credit card payments to pay the cost of your insurance premiums, they might also accept credit card payments to cover deductibles.