Cashback/reward credit cards and car insurance

pcguy

I'm looking at getting a cashback or reward credit card and my car insurance is due to renew soon. Would car insurance (annual not monthly) contribute to the qualifying offers where you can spend x amount in the first x months to get higher cashback or a better reward?

Also wondering if car insurance companies generally charge a fee to use a credit card, if so then it probably wouldn't be worth doing.

Thanks

guesswho2000

pcguy wrote: »

I'm looking at getting a cashback or reward credit card and my car insurance is due to renew soon. Would car insurance (annual not monthly) contribute to the qualifying offers where you can spend x amount in the first x months to get higher cashback or a better reward?

Also wondering if car insurance companies generally charge a fee to use a credit card, if so then it probably wouldn't be worth doing.

Thanks

Paying your car insurance would count towards whatever spend requirement your card has, it's classed as a purchase.

I've never been charged a fee by an insurance company personally for paying by CC, but only said company will be able to answer that question for sure.

For the record, I recently paid my car insurance (Tesco) in full by credit card (Nationwide Select) - no fees.

ic

Fees are becoming common on credit cards - I don't remember the precise numbers, but I know Aviva and More Than both charge in the region of 1.5% to 2% for payment on credit card.

If you got the Barclaycard cashback card and it timed right, you'd get 6% this year, and 4% each year when your insurance comes up for renewal. There is an annual fee though, look into it.