Paying for insurance premiums can be a significant recurring expense. Using the right credit card can transform these necessary payments into opportunities to earn valuable rewards, cashback, or even travel perks. This article explores the best credit cards for insurance payments in 2024, focusing on those that offer the most compelling rewards programs and benefits.
Top Credit Cards for Insurance Payments: A Comprehensive Comparison
| Credit Card | Rewards Structure | Key Benefits |
|---|---|---|
| Chase Sapphire Preferred Card | 5x points on travel purchased through Chase Ultimate Rewards; 3x points on dining, online groceries, and select streaming services; 2x points on all other travel; 1x point on all other purchases. | Travel redemption bonus: Points are worth 25% more when redeemed for travel through Chase Ultimate Rewards. Travel insurance: Trip delay reimbursement, baggage delay insurance, and auto rental collision damage waiver. Purchase protection: Covers new purchases for 120 days against damage or theft. |
| Chase Freedom Unlimited | 5% cash back on travel purchased through Chase Ultimate Rewards; 3% cash back on dining and drugstores; 1.5% cash back on all other purchases. | Introductory APR: Often features 0% APR on purchases and balance transfers for a limited time. No annual fee: Making it a great option for those who want to earn rewards without paying an annual fee. Purchase protection: Covers new purchases for 120 days against damage or theft. |
| American Express Blue Cash Preferred Card | 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%); 6% cash back on select U.S. streaming subscriptions; 3% cash back at U.S. gas stations and transit; 1% cash back on other purchases. | Amex Offers: Access to exclusive discounts and deals. Purchase protection: Covers eligible purchases against damage or theft for 90 days. Return protection: If a merchant won't take back an eligible item, Amex may refund the purchase price (up to certain limits). |
| Citi Double Cash Card | 2% cash back on all purchases (1% when you buy, 1% when you pay). | Simple rewards: Straightforward earning structure with no rotating categories or spending limits. Balance transfer options: Often features introductory balance transfer offers. No annual fee: A great choice for simple cashback rewards without added costs. |
| Capital One Venture Rewards Credit Card | 2x miles on every purchase, every day. | Flexible redemption: Miles can be redeemed for travel, cash back, or transferred to partner loyalty programs. Global Entry or TSA PreCheck credit: Receive up to $100 statement credit for Global Entry or TSA PreCheck application fee. Travel accident insurance: Provides coverage for accidental death or dismemberment while traveling. |
| Discover it Cash Back | 5% cash back on rotating categories each quarter (up to a quarterly maximum), then 1% cash back on all other purchases. | Cash back match: Discover will automatically match all the cash back you’ve earned at the end of your first year. Introductory APR: Often features 0% APR on purchases and balance transfers for a limited time. FICO Credit Score access: Free access to your FICO Credit Score. |
| Wells Fargo Active Cash Card | 2% cash rewards on purchases. | Simple rewards: Straightforward earning structure with no rotating categories or spending limits. Introductory APR: Often features 0% APR on purchases and balance transfers for a limited time. Cellphone protection: Get up to $600 of protection against damage or theft (subject to a $25 deductible) when you pay your monthly cellphone bill with your card. |
Detailed Explanations of Credit Card Features
Chase Sapphire Preferred Card: This card is a powerhouse for travel rewards. The 5x points on travel purchased through Chase Ultimate Rewards is a major draw, and the 3x points on dining, online groceries, and select streaming services make it valuable for everyday spending. The 25% travel redemption bonus through Chase Ultimate Rewards significantly boosts the value of your points. The card also offers robust travel insurance benefits, providing peace of mind on your trips.
Chase Freedom Unlimited: The Freedom Unlimited is a versatile card that offers a solid base rewards rate and bonus categories. The 5% cash back on travel purchased through Chase Ultimate Rewards and 3% cash back on dining and drugstores are excellent, and the 1.5% cash back on all other purchases is competitive. The no annual fee makes it an accessible option for those new to credit card rewards. The introductory APR can be beneficial for financing larger insurance payments or transferring balances.
American Express Blue Cash Preferred Card: If you spend a significant amount at U.S. supermarkets and on streaming services, this card is a top contender. The 6% cash back at U.S. supermarkets (on up to $6,000 per year) and on select U.S. streaming subscriptions is among the highest available. The 3% cash back at U.S. gas stations and transit is also valuable. Amex Offers provide additional opportunities to save money.
Citi Double Cash Card: This card is known for its simplicity and straightforward rewards. The 2% cash back on all purchases (1% when you buy, 1% when you pay) is a consistent and reliable way to earn rewards without having to worry about rotating categories or spending limits. The no annual fee makes it a low-risk option. The balance transfer options can be useful for consolidating debt.
Capital One Venture Rewards Credit Card: The Venture Rewards card is a strong choice for those who want flexible travel rewards. The 2x miles on every purchase is a solid earning rate, and the miles can be redeemed for travel, cash back, or transferred to partner loyalty programs. The Global Entry or TSA PreCheck credit is a valuable perk for frequent travelers.
Discover it Cash Back: This card is unique due to its rotating 5% cash back categories. The 5% cash back on rotating categories each quarter can be very lucrative if you align your spending with the categories. The cash back match at the end of your first year effectively doubles your rewards. The introductory APR can be helpful for managing expenses.
Wells Fargo Active Cash Card: This card provides a simple and rewarding experience with a flat-rate cash rewards structure. Earn 2% cash rewards on purchases, making it easy to accumulate value on every transaction without the need to track rotating categories or spending limits. The card also offers an introductory APR for a limited time, allowing for interest-free purchases and balance transfers. Additionally, the card includes cellphone protection when you pay your monthly bill with the card, providing coverage against damage or theft.
Choosing the Right Card for Insurance Payments
When choosing a credit card for insurance payments, consider the following factors:
- Rewards Structure: What type of rewards do you prefer (cash back, travel points, miles)? How well does the card's rewards structure align with your spending habits?
- Annual Fee: Are you willing to pay an annual fee for a card with more lucrative rewards?
- Introductory Offers: Does the card offer an introductory APR or bonus rewards?
- Insurance Payment Acceptance: Confirm that your insurance provider accepts credit card payments and whether they charge any fees for doing so. Some providers may only accept certain types of credit cards or may charge a convenience fee.
- Credit Score: Ensure you meet the credit score requirements for the card you're interested in. Applying for cards you're unlikely to be approved for can negatively impact your credit score.
- Spending Habits: Analyze your spending habits to determine which card offers the best rewards for your everyday purchases, in addition to insurance payments.
Maximizing Rewards on Insurance Payments
Here are some tips for maximizing rewards on insurance payments:
- Automate Payments: Set up automatic payments to ensure you never miss a payment and avoid late fees.
- Meet Minimum Spending Requirements: If the card offers a sign-up bonus, make sure you meet the minimum spending requirements within the specified timeframe.
- Pay Your Balance in Full: Always pay your credit card balance in full each month to avoid interest charges, which can negate the value of your rewards.
- Track Your Rewards: Monitor your rewards balance and redeem them strategically for maximum value.
- Consider Balance Transfers: If you're carrying a balance on another credit card, consider transferring it to a card with a lower APR or an introductory balance transfer offer. This can save you money on interest and help you pay down your debt faster.
- Check for Insurance Company Discounts: Some insurance companies offer discounts for paying your premiums in full or setting up automatic payments. Combine these discounts with credit card rewards to maximize your savings.
Frequently Asked Questions
Can I pay my insurance premiums with a credit card? Yes, most insurance companies accept credit card payments, but it's always best to confirm with your provider.
Are there any fees for paying insurance with a credit card? Some insurance companies may charge a convenience fee for credit card payments, so check with your provider.
Will paying insurance with a credit card help build my credit score? Yes, making timely payments on your credit card can help improve your credit score.
What if my insurance company doesn't accept credit cards? Consider using a service like Plastiq, which allows you to pay bills with a credit card even if the recipient doesn't accept them directly (fees may apply).
Can I use a prepaid card to pay for insurance? Most insurance companies do not accept prepaid cards, but it's best to check with your provider.
How often should I review my credit card rewards strategy? Review your credit card rewards strategy at least once a year to ensure it still aligns with your spending habits and financial goals.
What is a good credit score for applying for a rewards credit card? Generally, a credit score of 700 or higher is considered good and will increase your chances of approval for most rewards credit cards.
Conclusion
Choosing the best credit card for insurance payments depends on your individual spending habits, financial goals, and risk tolerance. The Chase Sapphire Preferred Card and Capital One Venture Rewards Credit Card are excellent options for those who prioritize travel rewards, while the American Express Blue Cash Preferred Card is a strong choice for those who spend a lot at U.S. supermarkets. The Citi Double Cash Card and Wells Fargo Active Cash Card offer simple and straightforward cashback rewards. Always compare the rewards structure, annual fee, and other benefits of each card to make the best decision for your needs.