Can You Charge Repairs On Credit Card Instead Of Insurance Money

Most insurance companies will accept credit cards and debit cards as forms of payment. Even so, before deciding to put your car insurance premiums on your credit card, you need to make up one's mind if this is the best option for your budget.

Paying some of your monthly bills with a credit card has its benefits: Information technology can exist a good way to earn extra rewards points, depending on your card, and it can give you more time to make your payments.

Only putting your bills and other monthly payments on a credit card can likewise exist risky — sometimes using a credit card can mean extra fees or charges, and putting besides many different payments on your credit card tin can lead to credit card debt if you aren't able to fully pay off your residue each calendar month.

Paying for motorcar insurance with a credit card, similar paying any bill with a credit card, has its pros and cons, and unlike machine insurance companies may have dissimilar rules almost putting your payments on a card. That said, most major insurance companies make it possible to do and then. Here'due south what you lot need to know if yous're considering putting your car insurance payments on a credit bill of fare.

Key Takeaways

Most car insurance providers accept credit cards as a class of payment. You should double check with your insurer to meet if any additional fees utilize
Depending on your credit card company, you can earn reward points for using your card
Still, you should brand sure you are making your credit menu payments in full every month then you can avoid paying interest on your premiums
If you rent a car but practise not take your own car insurance, your credit card visitor may really offer a certain amount of automobile insurance coverage on the rental

How to pay your auto insurance with a credit card

Most major motorcar insurance companies will requite yous the selection of paying your auto insurance premium with a credit card, and many give you the option of making your payments through various channels:

Online through your insurer's website
Over the phone
Through a mobile app (depending on your insurance company)

But earlier you become ahead and put your monthly payment on your credit card, check to see whether your car insurance company charges you any additional fees for paying on a card.

Some automobile insurance companies volition charge a fee if you employ a bill of fare for monthly payments, but will waive any fees if yous use your credit card to pay your annual premium in full. Paying your annual machine insurance payment upwards forepart tin can also earn you other discounts, so if you lot can beget to practice it, it can exist a smart pick.

Simply it's important to remember that putting your car insurance payments on your credit carte du jour doesn't mean you've delayed paying your premiums indefinitely. It'south crucial to make your credit card payments in full every month, otherwise you risk having to pay interest. Credit card interest is vastly higher than involvement on any other kind of loan, it tin exist more than 20%, meaning you'll lose a ton of money, and may run a risk going into debt, if you put your insurance payments on your credit card so tin can't afford to pay your credit carte bills.

That said, if you stay on top of your finances and brand sure to pay off your credit card residual in full and on time, so putting your auto insurance payments on your credit card may brand sense for you.

Why yous should pay your auto insurance with a credit card

There are a number of reasons you lot may desire to put your motorcar insurance payments on a credit bill of fare. Those benefits include:

Earning rewards points - This is one of the biggest pros to paying your car insurance payments with a credit carte. Equally long as you lot pay your balance on fourth dimension, you lot'll earn credit carte points on money you would take spent regardless, and subsequently you'll be able to put those rewards points towards travel or other expenses
Convenience - Paying your automobile insurance payments and other bills with your credit card tin help proceed all your payments in ane place. And if yous set automatic payments, you lot never risk being late with a machine insurance payment
More than fourth dimension to make your car insurance payment - As long as you pay your credit carte balance in full and on time, putting your car insurance payments on a credit card is a good way to give yourself a little extra time to pay

Why you lot should not pay your car insurance with a credit card

There are a few simple risks to look out for if you're considering putting your car insurance payment on a credit card. Those possible negatives include:

Extra fees - Equally we mentioned above, your car insurance provider may charge a fee for paying with a credit or debit card. Fifty-fifty if the fee is merely a few dollars, that can add together up to a significant amount over months or fifty-fifty years, so consider if the convenience is worth any additional fees
Paying interest - If you put your car insurance payment on a credit bill of fare and then can't beget to pay your credit card bill in full, you chance having to pay interest on the neb. And, as we mentioned earlier, credit card interest can be very loftier, significant you take chances paying much more for the payment and so you originally owed
Harm to your credit score - Your credit score includes a factor called your credit utilization ratio. That's simply how much of your total credit limit you utilise, but if you lot regularly max out your carte du jour, or spend shut to your credit limit, information technology can negatively bear on your credit score

Credit cards and rental cars

If you're renting a car and already take an auto insurance policy, that coverage will near likely extend to your rental car. Nonetheless if y'all don't already accept an insurance policy and yous might not need to buy rental car insurance — your credit carte company might actually cover you. Some credit card companies offering standoff damage waiver coverage, but not liability coverage.

If yous charge the price of your rental car to your credit carte you should be able to access coverage through your credit card company. That means if you become into a covered accident or your rental car is stolen, then your credit card company volition reimburse y'all upward to a sure limit.

You should contact your credit card company to brand sure they offering rental car coverage. Some credit cards that come with rental car insurance include:

Hunt Sapphire Preferred and Hunt Sapphire Reserve cards
Chase Hyatt and Chase Globe of Hyatt cards
Hunt United Explorer and United MileagePlus cards
Chase Amazon Rewards Visa Signature cards
American Limited Dark-green, American Express Aureate, and American Express Platinum cards
American Limited Hilton Honors and Starwood Preferred Guest cards
American Express Delta SkyMiles cards
Mastercard
Capital letter I Visa Platinum bill of fare

Car Insurance with a Credit Bill of fare FAQs

Is it bad to pay automobile insurance with a credit carte du jour?

Information technology is not necessarily bad to pay for your auto insurance with your credit card, as long as yous're able to pay off your credit carte in full and on-fourth dimension. Missed payments on your credit carte du jour tin can lead to interest on your car insurance, which means you'll have to pay fifty-fifty more in addition to your premium.

Does paying your motorcar insurance help your credit?

There is no direct correlation between making your car insurance payments and your credit score. If y'all're paying for your motorcar insurance with a credit card and you miss a payment, your credit score may be affected (just like missing whatsoever payment would affect your credit score), but paying your machine insurance with a credit menu will non "help" your credit.

Tin can you lot pay a deductible with a credit carte du jour?

You may be able to employ a credit bill of fare to pay your deductible if your repair shop takes that form of payment. When y'all file a merits for comprehensive or collision coverage, your deductible is usually paid directly to the machine body store earlier your insurance visitor will cover the remaining repair costs.

Authors

Kara McGinley is an editor and licensed dwelling house insurance expert at Policygenius, where she writes virtually homeowners and renters insurance. As a journalist and every bit an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

Editor & Home and Auto Insurance Expert

Stephanie Nieves is a former editor and insurance adept at Policygenius, where she covered home and automobile insurance. Her work has as well appeared in Business concern Insider, Money, HerMoney, PayScale, and The Muse.

Questions about this page? Email us at editorial@policygenius.com.