The argument for paying for insurance with a credit card

Pogue’s Basics: Money – 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.

http://finance.yahoo.com/news/pogues-basics-money-the-argument-for-paying-for-insurance-with-a-credit-card-215400124.html

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