Paying insurance premiums can be a significant recurring expense. Using the right credit card to pay these premiums can unlock valuable rewards, cashback, and other benefits, effectively offsetting some of the costs. This article explores the best credit cards for paying insurance premiums in 2024, focusing on maximizing your returns and making the most of your spending.
Best Credit Cards for Insurance Premiums: A Comparison
| Credit Card | Rewards Structure | Key Benefits |
|---|---|---|
| Chase Freedom Unlimited® | 1.5% cash back on all purchases, including insurance premiums. 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores. | No annual fee, intro APR offer, access to Chase Ultimate Rewards portal. |
| Blue Cash Preferred® Card from American Express | 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations and transit, 1% on other purchases. | Annual fee applies, but rewards can easily offset it. Strong rewards in common spending categories, Amex Offers, purchase protection. |
| Citi® Double Cash Card | 2% cash back on all purchases (1% when you buy, 1% when you pay). | No annual fee, simple and straightforward rewards structure, balance transfer options. |
| Capital One Venture Rewards Credit Card | 2 miles per dollar on every purchase, every day. | Earns miles, not cash back, which are redeemable for travel or statement credits. Strong signup bonus, travel benefits like TSA PreCheck/Global Entry credit. |
| Discover it® Cash Back | 5% cash back on rotating categories each quarter (up to quarterly maximum, then 1%), 1% on all other purchases. | No annual fee, rotating bonus categories can sometimes include insurance-related expenses, Discover matches all cash back earned in the first year. |
| Chase Sapphire Preferred® Card | 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, select streaming services, and online groceries, 2x on all other travel purchases, 1x on all other purchases. | Annual fee applies, but points are worth more when redeemed for travel through Chase Ultimate Rewards. Travel and purchase protections. |
| American Express® Gold Card | 4x points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1%), 4x points at restaurants worldwide, 3x points on flights booked directly with airlines or on amextravel.com, 1x on all other purchases. | Annual fee applies. High rewards on dining and groceries, valuable Amex Membership Rewards points, dining and travel credits. |
| U.S. Bank Cash+® Visa Signature® Card | 5% cash back on two categories of your choice each quarter (up to $2,000 in combined purchases), 2% cash back on one everyday category, 1% on all other purchases. | No annual fee, customizable rewards categories allow you to potentially select insurance-related categories. |
Detailed Explanations
Chase Freedom Unlimited®: This card offers a simple and effective way to earn rewards on all your purchases. The flat 1.5% cash back on everything, including insurance premiums, makes it a great choice if you prefer simplicity and don't want to worry about rotating categories or bonus spending. The additional rewards on travel, dining, and drugstores are a bonus.
Blue Cash Preferred® Card from American Express: If you spend a significant amount on groceries, gas, and streaming services, this card is a powerhouse. While it has an annual fee, the high cash back rates in these categories can easily offset the cost. The 1% cash back on other purchases, including insurance premiums, is lower than some other cards, but the overall rewards structure is very compelling for everyday spending.
Citi® Double Cash Card: Simplicity is the name of the game with this card. You earn 1% cash back when you make a purchase and another 1% when you pay it off, effectively giving you 2% cash back on everything. This makes it an excellent choice for those who want a straightforward rewards structure without having to track bonus categories or spending limits.
Capital One Venture Rewards Credit Card: Instead of cash back, this card earns miles. You earn a flat 2 miles per dollar on every purchase, which can be redeemed for travel or statement credits. This card is best for those who frequently travel and can take advantage of the travel redemption options and benefits like the TSA PreCheck/Global Entry credit.
Discover it® Cash Back: This card features rotating 5% cash back categories each quarter. While the categories change, they sometimes include online shopping or other areas where you might be able to indirectly pay for insurance (e.g., purchasing gift cards to use for premiums). The first-year cashback match is a significant benefit, effectively doubling all the rewards you earn during that year.
Chase Sapphire Preferred® Card: This card is aimed at travelers and offers valuable points that can be redeemed for travel through the Chase Ultimate Rewards portal at a higher value. While the bonus categories don't directly cover insurance premiums, the points can be used to offset travel costs, freeing up budget for insurance payments.
American Express® Gold Card: This card is ideal for those who spend heavily on dining and groceries. The high rewards rates in these categories can help you accumulate points quickly, which can then be used to offset other expenses, including insurance premiums. The annual fee is significant, but the rewards and credits can make it worthwhile for the right spender.
U.S. Bank Cash+® Visa Signature® Card: This card offers a unique level of customization. You get to choose two categories to earn 5% cash back on each quarter, up to a certain limit. It's crucial to check if any of the available categories align with your insurance payment methods or related expenses.
Frequently Asked Questions
Can I pay my insurance premium with a credit card? Yes, most insurance companies accept credit card payments, but it's always best to confirm with your specific provider.
Are there any fees for paying insurance premiums with a credit card? Some insurance companies might charge a small processing fee for credit card payments, so check with your provider.
Which credit card is the best for paying insurance premiums? The best card depends on your spending habits. If you want simplicity, a flat-rate card like the Chase Freedom Unlimited® or Citi® Double Cash Card is a good choice. If you spend a lot on groceries or gas, the Blue Cash Preferred® Card from American Express might be better.
Will paying my insurance premium with a credit card affect my credit score? Using a credit card responsibly and paying your bills on time can positively impact your credit score. High credit utilization (using a large percentage of your available credit) can negatively impact your score.
What is the Chase Ultimate Rewards program? Chase Ultimate Rewards is a rewards program offered by Chase that allows you to earn points on eligible purchases and redeem them for travel, cash back, gift cards, and more. Points are often worth more when redeemed for travel through the Chase Ultimate Rewards portal.
Conclusion
Choosing the best credit card for paying insurance premiums depends on your individual spending habits and preferences. Consider factors such as rewards structure, annual fees, and redemption options to maximize your returns. By selecting the right card, you can effectively earn rewards and offset the cost of your insurance premiums.