speak for ACKO
speak for ACKO
speak for ACKO
Home / Car Insurance / Articles / Can You Use a Credit Card for Car Insurance Payments?
Can You Use a Credit Card for Car Insurance Payments?
Nikhila PSJan 16, 2026
Share Post
Yes, you can use a credit card to make car insurance payments. By doing so, you can enjoy several benefits, including ease of use, rewards, and improved money management. Currently, many vehicle owners choose to use credit cards to pay for major expenses, such as insurance premiums, as it gives them better control over their money. Most insurance companies allow insurance premium payments through credit cards, along with other payment methods.
Contents
How to Use a Credit Card to Pay Car Insurance
The steps are easy and mostly the same for different insurers:
Navigate to the insurer's website or app: Click on the "Buy Insurance" or "Renew Policy" option.
Enter the required details: This may include vehicle number, policy number, and personal information.
Select your insurance cover: In addition to the basic cover, options such as zero depreciation, roadside assistance, and consumable cover can be chosen if desired.
Proceed to the payment stage: At checkout, choose Credit Card as the payment method.
Enter card details securely: Provide your card number, expiry date, CVV, and then enter the OTP for verification.
Receive confirmation without delay: In most cases, your policy document is available for download or is sent to you by email instantly.
The whole process takes a few minutes to complete this transaction.
Why Choose a Credit Card for Insurance Payments
There are several advantages to paying for your car insurance with a credit card. Let’s explore them.
1. Better Management of Finances
Sometimes,the cost of car insurance can be quite high, particularly if you have a comprehensive policy or have added some extra features. Using a credit card to make the payment will enable you to keep control over your money as your bank balance will not be directly impacted.
2. Reward Points and Cashback
Most credit cards provide reward points, cashback, or air miles for utility or insurance payments in some way. So, if your bank is giving you a reward for such a transaction, it is just like making money while you pay, by just selecting the right payment method.
3. EMI Options for Large Premiums
There are banks that provide a feature with which an expensive operation can be changed into EMIs. So, it is possible to pay the insurance premium from the monthly budget in a comfortable way. The interest rates are different for each card issuer. Therefore, you need to see the terms before you make a decision.
4. Payment Tracking and Security
Monthly statements for credit cards are detailed and thus they become easy to keep track of the expenses incurred. Besides, they provide sophisticated fraud-protection features, OTP verification, and tools for settling disputes.
5. Convenience and Speed
The money transfer is done instantly, and there is no waiting required for the net banking pages to load, or if the bank is down, you don't have to worry about it. In addition, renewal reminders and automated payments (if allowed) are some of the means through which due dates can be less that you be forgotten.
Things to Keep in Mind Before Paying Insurance Premiums with a Credit Card
Using credit cards for insurance payments can be convenient and can even earn you rewards, but there are some things to watch out for. For instance, if you miss your credit card due date, the issuer can charge you high interest and late fees; sometimes, the cost to you of the premium can be far more than the original plan.
There might be cases where some payment gateways also charge small convenience fees, thus increasing the total amount. If not done properly, your credit card limit utilisation ratio may be temporarily affected by large insurance premiums, which in turn could impact your credit record.
Additionally, the credit card EMI option may incur processing fees or interest, so it's wise to compare the total EMI cost with a single upfront payment.
Conclusion
It is now very convenient and advantageous to use a credit card as a mode of payment for your car insurance premium. Doing so correctly and on time will bring you a few benefits like reward points and EMI (Equated Monthly Installment) options, along with secure and trouble-free transactions.
If you want to experience a seamless, digital-first car insurance purchase or renewal, then ACKO is one of the very few customer-friendly and simplest ways to accomplish that. With instant quotes, instant policies, and hassle-free online payments, including credit card options, ACKO is the ideal way to alleviate car insurance stress and enjoy a transparent system.
Was this article helpful?
Recent
Articles
Pure Term Insurance vs Money Back Policy: Which Is Better in India?
Neviya Laishram Jan 14, 2026
Is ULIP Really Worth It?
Neviya Laishram Jan 14, 2026
Should I Rely Only on Employer Group Term Insurance or Buy a Pure Term Plan?
Neviya Laishram Jan 14, 2026
What Does ‘Pure Term Insurance’ Really Mean for Your Loved Ones?
Neviya Laishram Jan 14, 2026
Why Life Insurance Isn’t Meant to Be an Investment
Neviya Laishram Jan 14, 2026
All Articles
Want to post any comments?
Upto 80% off, prices starting ₹2,094*
Car insurance starting ₹2,094*
Getting a brand new car?
Save up to ₹40,000* on your insurance
Check prices
#36/5, Hustlehub One East, Somasandrapalya 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102