Credit cards are commonly used for shopping and booking tickets, but did you know you can also pay your insurance premiums with them? Paying your premium with a credit card is not only convenient but also offers several advantages. Here’s how you can use your credit card to pay your insurance premiums on time and enjoy its benefits.
Step-by-step guide to pay premiums with credit card
- Visit the website or open the app of your insurance company.
- Navigate to the Payment section.
- Choose the Premium Payment option.
- Select Credit Card as your payment method from the available options.
- Enter your credit card details as required.
- Confirm the payment to complete the transaction.
Can also choose option of auto-debit
You can also set the option of auto-debit facility in insurance premium payment. By doing this, your premium will be paid automatically. Using a credit card to pay insurance premiums can be a better option, but it is important to weigh its benefits and disadvantages as well.
Advantages and disadvantages of premium payment with credit cards
- Pay without bank balance: You can make the payment without keeping the full amount in your bank account.
- Improve Credit Score: Timely payment can help improve your credit score.
- Reward Points: Many credit cards offer reward points on payment of insurance premiums.
- Timely Payment: Choosing the auto-debit option from credit cards ensures that your premium is paid on time.
- Additional Charges: Some insurance providers charge additional charges for credit card payments.
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