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Southern Colorado Insurance Center Blog

All You Ever Wanted to Know About Insurance

Cash or Credit?

There is a debate of how you should pay your monthly insurance premiums. Some say they prefer using credit cards, some say they prefer a check or schedule a withdrawal from their bank accounts. There are pros and cons to both, and it boils down to your personal comfort and preference, but here are some things to consider.

If paying by credit card:


  • You most likely will be automatically charged the same time every month so you won’t have to remember to schedule a payment.

  • You can earn reward points on some of the cards that offer the rewards.

  • It eliminates paper-billing and is better for the environment.

  • If you can’t afford it with the money coming in, you stay covered


  • You may forget to budget the credit charge every month which could cause larger monthly minimum payments for that card.

  • If you change cards, or receive a renewal for an expired card, you may forget to change that in the insurance bill. This could run the risk of missing a payment.

  • You may become dependent on using the card and not be able to pay it down before it racks up those finance charges.

  • You may get charged more due to processing fees.


If you pay with a check/debit card:


  • It will make budgeting much easier, especially if you do your banking online.

  • You will have written documentation of payments made, in case a “miscommunication” occurs.

  • You may save a few pennies due to a lack of processing fees…maybe.

  • This will help you maintain or increase your credit score, especially if you planning to apply for a home or car loan soon.

  • It will help to avoid relying on credit cards for “everyday” expenses, thus lowering their usage.


  • It may take longer for your payment to go through.

  • You may have to wait for a paper bill to come in the mail.

  • You may forget to pay or the check could get misplaced in the mail.

To find out more about payment options, insurance policies, or to get answers to any of your insurance related questions, give Debbie at Southern Colorado Insurance Center a call at (719) 329-4441 or email her at youarefirst [at] scicteam [dot] com.


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