Car insurance - cc or dd?

VfM4meplse

Hi all,

I usually make all purchases over a single pound on my credit card (which I pay off fully every month), for items over £100 its a no-brainer. I'm about to renew my car insurance and the additional charge for using my cc I feel is unnecessary. Is there any good reason to use my credit card over debit facility for car insurance? The insurer is a subsidiary of Admiral, which I suspect is unlikely to go bust in the next year.

Views?

neilmcl

Well buying car insurance on a monthly basis via direct debit will obviously incur interest. How much is the charge to use your CC?

VfM4meplse

neilmcl wrote: »

Well buying car insurance on a monthly basis via direct debit will obviously incur interest. How much is the charge to use your CC?

Sorry I meant paying the bill for the annual insurance via my debit card and not in installments. I don't really understand what's to be lost.

It will save about £10, so not a fortune nor a poke in the eye with a sharp stick.

onomatopoeia99

Pay it on the debit card, Admiral aren't going anywhere.

I also use the CC for everything and clear it every month, unless the retailer makes a charge. I don't see any point in paying out an extra 2% or whatever unless I'm very suspicious of the vendor.

MattTheMoneyGuru

I tend to use my credit card for high value purchases (As well as online) because of the purchase protection.

Not sure if your insurance would be covered, but section 75 of the Consumer Credit Act should tell you

Johno100

There's 100% protection via the Financial Services Compensation Scheme (FSCS) in the unlikely event that they go bump.

As an example Enterprise Insurance went bust last year, customers were either transferred to a different underwriter or received a refund ( I assume pro-rata).

http://www.moneysavingexpert.com/news/insurance/2016/10/enterprise-customers-begin-to-receive-compensation-after-insurer-goes-bust

I understand that the Admiral Group charge a flat fee of about £6 to pay by credit card, another reason not to use them.

Hasbeen

VfM4meplse wrote: »

Hi all,

I usually make all purchases over a single pound on my credit card (which I pay off fully every month), for items over £100 its a no-brainer. I'm about to renew my car insurance and the additional charge for using my cc I feel is unnecessary. Is there any good reason to use my credit card over debit facility for car insurance? The insurer is a subsidiary of Admiral, which I suspect is unlikely to go bust in the next year.

Views?

Just started new insurance with Debenhams paid for year with credit card. No charge. Looking to get £69 cashback and £50 store voucher. Cashback now down to £40ish

pogofish

Insurance is one of the things I always pay up-front on my bank card, so there can be no issues with screwed-up payments or extra charges for paying monthly or by other means.