Credit Card Payment Options Removed from Insurance Payments

[AAstra]

My auto insurance policy (Erie Insurance) is expiring within a month, so as I typically do, I went to login and pay my new policy using one of my credit cards. However, to my surprise, I found out that I can no longer pay my policy in full using a credit card. I did note that you can still use a credit card for options such as quarterly or monthly payments but of course, an installment service fee will be charged for every payment after the first payment. So, you can either use your credit card but be charged a fee and not be eligible for the pay in full discount or not use your credit card at all. It is obvious that Erie is attempting to deter customers from using credit cards for payment. 

Has anyone else experienced something similar to this? Further, does anyone know why company's continue to put these restrictions in place against credit card usage? I've read that it is typically due to the fees that the credit card company's charge but does that really apply here? It would be one charge for one use of the credit card if paying in full. Doesn't seem like a huge deal to me but if it is to the insurance company, just charge me the service fee one time.

That's my rant. Feel free to move the post if it doesn't fit this forum category.

Cheers!

[austinguy907]

Like the Liberty Mutual commercial eludes to "Maybe I picked the wrong insurance company?!" comes to mind.  I tend to shop around every renewal just to keep things in perspective.  This year my renewal came in from Elephant for $2400/yr with no reason for a $600 increase from the previous period.  I ran some quotes as I normally would to see what the factors could be.  I ran one through Elephant for a new policy and it came back at the prior rate $1800/yr and then I ended up digging around online for some rate comparisons for the region.  I stumbled upon State Farm having some competitive rates and ended up coming in $100/yr less than Elephant even.  State Farm does accept pay in full by CC

I don't know how I would feel though going with their banking / CC products though since there's so many other options that are more lucrative than the CC they offer with insurance premium rebates (rewards).

Yes, I know I pay too much for insurance but, that comes with the territory when you drive a sports car and live in a high rate zone.  

[Viva-LV]

I pay my monthly State Farm auto/home premium w/Am Ex (points). I tired to CC pay a term life from Prudential monthly, got shot down. They said I could CC it annually.

[Gmood1]

One of the main reasons I switched my insurance was because they didn't allow CC payments. In the process I saved myself nearly $800 a year switching. Now I pay the premium every six months with a 0% 6 months no payments card and get 2% cash back on the back end. Nothing but a win for me! In fact I just paid it a couple of days ago. The bill isn't due till Jan of 2017.

[Anonymous]

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@Gmood1 wrote:
One of the main reasons I switched my insurance was because they didn't allow CC payments. In the process I saved myself nearly $800 a year switching. Now I pay the premium every six months with a 0% 6 months no payments card and get 2% cash back on the back end. Nothing but a win for me! In fact I just paid it a couple of days ago. The bill isn't due till Jan of 2017.

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What card do you have that gives you nevernding 0% on purchases?

[Anonymous]

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@Anonymous wrote:

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@Gmood1 wrote:
One of the main reasons I switched my insurance was because they didn't allow CC payments. In the process I saved myself nearly $800 a year switching. Now I pay the premium every six months with a 0% 6 months no payments card and get 2% cash back on the back end. Nothing but a win for me! In fact I just paid it a couple of days ago. The bill isn't due till Jan of 2017.

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What card do you have that gives you nevernding 0% on purchases?

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I'm pretty sure they are referring to the Blispay card. 

[Vegas4Play]

The way I see it is Insurance companies do not want to pay for credit card fees from accepting credit cards. Or they do not want to experience a charge back claim after they have paid out on an insurance claim maybe.

[Anonymous]

I've had Geico for many, many yrs.  They don't raise your rates all the time and they never charge you a fee for using your cc.  I have mine set to autopay with cc and love it.  Last month, I was sitting at a light and the person in front of me statting rolling back and I guess he slammed on the gas pedal instead of the brake and ran backwards into me.  Wrecked more than I thought in the front of my car.  Geico said np.  His fault, I'm fine.  Paid nothing & policy is still the same.  I often call once a year and check to see if I can get more cheaper, but I always stick with them.  I listened to the home oweners insurance broker who told me to keep upgrading my policy and paying and I will get to the point where I have the very best insurance at the lowest price.  It works well.  

[Anonymous]

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@Anonymous wrote:

I've had Geico for many, many yrs.  They don't raise your rates all the time and they never charge you a fee for using your cc.  I have mine set to autopay with cc and love it.  Last month, I was sitting at a light and the person in front of me statting rolling back and I guess he slammed on the gas pedal instead of the brake and ran backwards into me.  Wrecked more than I thought in the front of my car.  Geico said np.  His fault, I'm fine.  Paid nothing & policy is still the same.  I often call once a year and check to see if I can get more cheaper, but I always stick with them.  I listened to the home oweners insurance broker who told me to keep upgrading my policy and paying and I will get to the point where I have the very best insurance at the lowest price.  It works well.  

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If paying geico monthly don't they charge a service fee?