Car Insurance - Can you pay the deposit ?

McClane54

Hi Guys and Girls

1) Just wondering if you could pay the deposit of a car insurance policy with a credit card?

2) Also then the can the monthly payments be used as a direct debit through my credit card or do i have to use my bank account ?

thanks

Ems!

definitely yes to qun 1.

qun 2 I'm not so sure - I would think no but I may be wrong.

McClane54

Hi

Thanks, that's ok, all i want to do is pay the deposit on the CC (insurance is up and dont get paid till next week) then do monthly direct debits from my bank account for the monthly payments, thanks

opinions4u

It depends on the company. So ask them.

Ems!

yes you will be able to pay deposit on cc then monthly payments by dd from your bank.

kwmlondon

I believe yes to both, though they may charge a fee each time. Depends on the company.

thenudeone

Why don't you ask the insurance company you want to go with? Ultimately, it's up to them. No-one here can give you a definite answer.

dalesrider

No such thing as a DD from a credit card.
Continuous payment authority, YES... But that's a whole diffrent ball game.

Why not pay the whole lot in one go on your credit card?

alexjonsson

You'll be better paying for the whole thing on your credit card - even if it takes you the whole year to pay off. The interest rate you're likely to get on paying your car insurance in monthly instalments is likely to be astronomical compared to your credit card interest rate.

McKneff

Why not just ask the insurance company if they do credit over the year, probably a lot cheaper than a credit card payment.

Often they don't charge for credit.

alexjonsson

Sorry, I just wanted to say that you may well be better off using the insurer's own credit facility. I had thought that all the APRs were high, but my own insurer, Your Cover by Allianz has a representative rate of 13.9% APR.

Now this is the fun part - this thread spurred me into checking my own policy schedule. I was on ESA and hence unemployed when I took my insurance policy out and I was quoted ~33% APR + 12% service charge. Yeah not great, but needs must at the time.

However, since then I have changed address twice with my insurer and have returned to work. I noticed that my APR has increased to 44.99%. How can this possibly be?!

The T&Cs do not state anything about variations in APR, only that they may increase the service charge with ten days' notice.

Is this possible legal - I simply don't get it? I can't imagine that entered into a 'new' credit agreement just be changing my address - wouldn't I have had to be formally advised the change in APR?

Sorry to hijack this thread - it's semi relevant. If you like I can go off and start my own...