A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 14, 2021

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Important facts to know...

  • Not every car insurance company offers credit card payment options
  • Credit card payments may come with processing fees
  • Pay attention to payment options when looking for a car insurance policy

So much of your car insurance policy and the options that you have are dictated by the car insurance carrier that you choose.

It is, therefore, important as a consumer to always do your homework, look at the details, and compare what one insurer is offering to the others.

Doing those things is how you are going to be able to tell if you have the ability to:

  • Alter your coverages and payment terms
  • Get discounts on your premium
  • Have options to pay or your premium, such as with a credit card

Payment options that are accepted by insurers are going to vary from one insurer to the next.

It is not a hard and fast rule or set of practices that every single insurer has to follow when it comes to receiving premium payments from consumers. The only thing that they all have in common is that all insurers want to get paid.

When they are paid the premium that they have calculated, the coverage that you have purchased is going to continue.

How they get paid is based on the agreement between you and the insurer.

If you want the best auto insurance rates out there, start comparison shopping by entering your ZIP code above!

The Credit Card Option

One of the most common questions that consumers have when it comes to car insurance is whether they have the ability to pay for their insurance with a credit card.

As a consumer can you actually use your credit card to make an annual, semi-annual, or even monthly installment payment to pay down that premium balance?

The answer to this question is always going to be, “it depends.”

It truly does depend on your car insurance carrier in terms of whether or not the credit card option is going to be there for you.

What most car insurance carriers are going to allow is for you to pay via check, money order, or even cash in some instances. Credit cards and whether or not they are accepted will vary widely, though.

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Fees Associated with Processing

The biggest reason as to why so many car insurance carriers may choose not to accept credit card payments as a form of premium payment is due to the fees that are associated with the processing of these payments, so you may want to find another way to pay.

The reality with credit card payments for service providers is that they are going to be allowing the credit card companies to take a cut of their earnings.

Look at an insurance premium of say $1,000 that the insurance carrier is charging you for the policy. That premium amount is something that you may have the option to pay for via credit card.

In the event that you choose to go with a credit card payment, the credit card provider is going to take a cut of that $1,000 in premium that the insurer was expecting to get. That cut reduces the revenue from that policy that the insurer had calculated.

Discounts for Paying Without a Credit Card

Some car insurance providers may actually give you the option as a consumer to pay for your premium with a credit card.

In the event that you choose not to take advantage of this option, though, they may give you a discount on your premium in exchange for that.

The flip side option of this is the fact that if you choose to pay with a credit card, you may actually have a fee charged to you because of it.

Credit card processing fees being charged by insurance carriers in exchange for allowing the use of a card are more common than you think.

The reason this is done is to give you as a consumer the convenience of being able to use a credit card while allowing the insurance carrier to not take a hit on premium revenue because of the option.

Whether or not you can pay for your car insurance with a credit card is going to largely depend on your car insurance carrier.

As a consumer, if you want the option to pay for your car insurance with a credit card, be sure to be on the lookout for this as you shop around for your policy.

Do comparisons of the varying payment options each insurer offers so you end up with one that is going to be most favorable to you.

Start comparison shopping today with our FREE online quote tool! Enter your ZIP code below to get started!