People who live in West Hartford, Connecticut rely on credit cards to pay for almost everything. They are no different than people in Miami, Denver or Dallas. Almost every Connecticut insurance provider will give you the option of using your credit card to make a payment or payments on your home insurance policy.
One of the reasons why you might want to use your credit card to pay your premium in full when you take out home insurance is that you may qualify for a discounted rate compared to spreading out your payments over the year through the finance company. Insurance companies may give as much as a 10 percent discount if you pay all at once.
If you do not have the money sitting in the bank, it might save you some money if you put the cost of your home insurance on your credit card and then pay the card off in a couple of month. Even though credit cards have high interest rates, you will come out ahead as long as you pay off the balance in a reasonable amount of time.
Naturally, it is nice to be able to save 10 percent on your premium, but what can you do if you do not have money in the bank or a credit card with enough available credit to cover the one-time payment. You can ask your spouse to use her credit card, or if you have a really close friend, ask them to pay the premium on their charge card. As long as you get permission from the person whose card you want to use, you can pay your insurance company with another person’s credit card.
Just be sure to pay that person back as soon as you can. Any interest or other charges that are billed to the person who lent you their card are also your responsibility to pay. While it may be okay to use someone else’s card, be very careful if you do. If you do not pay them back, you may get sued and will probably lose a good friend.
If money is tight and you are thinking about using someone else’s credit card, give us a call first. An independent agent may be able to get the terms of your financing agreement changed so you can afford the premium and not impose on a friend or family member.