Monday, January 16, 2017
The argument for paying for insurance with a credit card
Progressive, GEICO, State Farm, Allstate, Esurance — all major insurance companies let you pay for your insurance with a credit or debit card.
And you know what? You should. Because if you have a rewards or cash-back credit card, you’re getting rewards or cash back on a big expense: the thousands a year you spend on insurance. If you have a typical $900-a-year car-insurance plan, your card will kick back $18 each year; if you spend $3,000 a year on homeowners insurance, your card will refund $60 every year.
You’ve got several kinds of insurance to pay. You’ve got utility bills, too—same trick. It adds up handsomely.
As a handy bonus, you can set up a recurring, automatic charge to your card each month. That way, you never forget to pay your premium (and never have to bother).
For a typical American consumer, this trick will save you about 150 bucks a year.