Paying for car insurance: credit or debit card

graham17_2

Hi all,

Just a quick question.

About to renew my car insurance, and wondering whether to pay by credit or debit card.

A debit card attracts 0 fee, whereas the credit card (as is often the case) attracts a 2.5% fee.

I realise that as a general rule, it makes sense to pay for things on a credit card. I just wondered in the case of car insurance, would it be necessary/advisable to use a credit card, or would a debit card be fine. The fee would come to almost £10. I'd obviously rather not have to pay it, but if it's going to be a much better idea to use a credit card, then I would.

If I used a debit card, I'd use a visa debit. I believe there is some protection with them these days.

Just looking for opinions before I take it out.

Thanks,

Graham.

huckster

Yes Visa includes charge back, so if there is a mistake or issue with the payment then you have more protection than a standard debit card.

I don't think it is worth using a credit card, unless you don't have the cash to make the payment at the moment. I am not sure the section 75 protection given using a credit card is of much use regarding an Insurance issue. Also with a credit card payment, if you cancelled the policy early due to a change in circumstances, the refund would normally go back onto the payment card used.

graham17_2

Hi,

Thanks for that.

So the credit card won't offer me any more protection for something like car insurance anyway? Don't want to waste £10 for the sake of it anyway :-)

Graham.

huckster

graham17 wrote: »

Hi,

Thanks for that.

So the credit card won't offer me any more protection for something like car insurance anyway? Don't want to waste £10 for the sake of it anyway :-)

Graham.

I can't see that using a credit card would offer any more protection in regard to Car Insurance arrangements.

Over to others, if they have further or contrary information.

thenudeone

If the insurance company went bust (yes it could happen), you would probably be covered under the Financial Services Compensation Scheme, regardless of the payment method, so it's probably not worth paying the extra to use a credit card.

https://www.fscs.org.uk

graham17_2

Hi,

Thanks all for the information.

Will pay it by debit card.

Graham.