Pay with credit or debit card?

L123

I am about to take our some new car insurance however, the broker will charge me an additional £6 on top of the insurance if I pay by credit card. If I pay by credit card I can then collect my M&S rewards points and pay the card off at the end of the month. Alternatively, I can pay by direct debit. Any advice? I always pay my insurance annually.

Thank you.

[Deleted User]

Depends on whether the points are worth more than £6.

L123

Any idea where I can work this out please?

InsideInsurance

Debit card or Direct Debit?

Normally DD is monthly installments which comes with a fairly high APR to pay for the loan you are taking. Debit card is normally a one off payment, same as credit card, so would be the cheapest option unless the broker is running a 0% APR promotion on installments.

L123

You are right - monthly direct debits are more expensive which is why I'm debating between paying by creidt card (additional £6 charge but I get my M&S points) or debit card - no fee. Apologies I got this mixed up. Any advice would be great.

InsideInsurance

So you get 1 point per £2 spent and 1point is worth 1p. So to break even you need to earn 600 points so a premium of £1,200 or more then it may be worth paying by credit card.

That doesnt factor in any promotional periods or if there is any bonus windows when points are worth more than normal etc