Can You Pay For Insurance With A Credit Card?


Insurance policyholders have to make monthly payments to hold onto their policies, but many insurance providers give you flexibility in how you make payments. Many companies let you use credit cards to make payments. While credit cards provide more financial flexibility, minimizing risk is crucial so you don’t get into too much debt. We’ll share how the process works and ways to build your credit while keeping up with your insurance premiums. 

How paying for insurance with a credit card works

Most insurance companies have payment policies that determine how and if you can make payments using your credit card. It’s best to review your insurer’s website or talk with a representative to see how you can make insurance payments with a credit card.

Can you pay for car insurance with a credit card?

Most car insurance companies allow policyholders to pay with a credit card. You should review the insurance provider’s rules and see if it accepts credit cards.

Can you pay for health insurance with a credit card?

Most policyholders won’t have a problem accepting insurance payments paid by a credit card. People enrolled with Medicare can log into the portal and submit an online bill payment with a credit card, debit card or bank account. You can set up Medicare Easy Pay for a checking or savings account to enable monthly recurring payments, so you don’t have to remember.

Can you pay for life insurance with a credit card?

Many life insurance providers let you make payments with your credit card. However, this rule depends on your insurer. Connect with your life insurance provider to see if they accept credit card payments.

Can you pay for home insurance with a credit card?

You can pay for home insurance with a credit card. Some insurance providers also let you set up recurring payments that happen automatically. You won’t have to worry about remembering to make payments.

Can you pay for pet insurance with a credit card?

Insurance companies often let their policyholders use credit cards to pay premiums. Pet insurance holders can use their credit cards to make payments.

Benefits of paying insurance with a credit card

Are you considering credit card payments for your insurance policy? Credit cards present policyholders with several benefits.

Take advantage of cashback and points

Most credit cards have reward programs that give you points or cash back on every purchase. You can accumulate points and get some money back from every premium payment. Since you planned to spend money on your insurance policy anyway, you might as well get some rewards for it.


You don’t have to repay credit card debt right away. You can gradually repay it leading up to the bill’s due date. Credit cardholders can get into serious debt if they only make the minimum payment, but getting your balance back to $0 before the end of each month will protect you from high interest rates. This protection lets you benefit more from the flexibility of credit card payments. You don’t have to worry if your bank account doesn’t have enough funds to support your debit card payment.

Build credit

Credit cards allow you to improve your credit score if you make on-time payments. Payment history makes up 35% of your credit score, and each insurance payment can give you a few points. Those extra points can help you qualify for higher loan amounts and lower interest rates. Even if you don’t plan to borrow money, building credit is still important. Most landlords will look at your credit report when you submit your tenant application.

Disadvantages of paying insurance with a credit card

While your credit card can cover insurance payments and provide numerous benefits, you should know the risks before getting started. Here are some reasons to be wary of paying insurance with a credit card.

Interest charges

Credit cards have high interest rates, and since they’re variable, these rates stand to increase as the Fed raises rates. Your credit card balance will increase significantly if you wait to pay it off.

Racking up debt

It’s easy to spend with a credit card. Debt can rack up quickly before you think about how you’ll pay it off. The high-interest rate will cause the debt to snowball, and it can put you in a challenging situation. When repaying your credit card, do not stop at the minimum payment. Although this practice will protect you from late fees, your debt will grow silently.

Credit score Implications

Racking up too much credit card debt will hurt your ability to make on-time payments. Each late or missing payment will hurt your credit score. A lower credit score translates into higher rates, an uphill battle to get any loan and other obstacles. Conversely, you’ll be rewarded for on-time payments. If you pay insurance with your credit card and repay the debt before it’s due, your credit score will increase.

Alternatives to paying insurance with a credit card

You don’t have to use a credit card to pay for insurance. You can explore these alternatives to make insurance payments. 

Checking account or savings account

Insurance companies let you automate premium payments through your checking or savings account. You won’t have to worry about missing a payment and losing out on the policy.

Debit cards

A debit card connects to your bank account and is a viable alternative to paying insurance. You won’t accumulate debt like you can with a credit card, but you need enough funds in your bank account to support the transaction.

Online payments

You can set up online payments with your insurance company. You can make these payments automatic and link a funding source. 

Call in

Insurance companies give their policyholders various payment options. You may have additional options, such as writing and mailing a check. Policyholders can call their insurance providers to discover their options.

Government assistance

The government helps with some insurance payments, depending on your income. If you are in a lower income bracket, you may be eligible for government assistance for your health insurance policy. 

Need Help With Insurance? Your Credit Card Can Get The Job Done

Credit cards make it easier to buy goods and services, including insurance policies. You can make credit card payments towards your policy so it’s available when you or your loved ones need it the most. You should talk with your insurance provider to discover your options and how to set up an automatic plan.

What bills can you pay with a credit card?

Credit cards help you cover various expenses and bills. You can use your credit card or obtain a credit card cash advance, although the latter is not recommended.

Can I pay a loan with a credit card?

Although you can pay for a loan through a credit card cash advance, it’s not a good idea because of fees and higher interest rates.

Can you pay an insurance deductible with a credit card?

Yes, you can pay an insurance deductible with a credit card.

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