The car payment card can get a little confusing when it comes to car insurance.
If you are buying a car that you’re leasing and need to pay for it with your car payment, there are a few things to know.1.
If your car payments come from a credit card, they’re subject to the same credit card processing rules as other purchases.2.
You can’t transfer your car insurance to a different credit card.3.
If the card is issued by a credit union, you have to wait for the union to approve your car loan before you can transfer your payments.
If not, your car will be charged interest on the balance that’s still outstanding.4.
If there’s a charge on your credit account for the car payment you’re making, it won’t appear on your statement until the next business day.5.
If an agreement you’ve signed with a credit company includes a payment for your car, it can still be charged for car insurance on your next credit card statement.6.
The first payment is the car loan and the second payment is your insurance premium.
If it’s a second payment, it will have to be paid off within 60 days of signing the agreement.
If you’re unsure about whether a car insurance company is a good choice for your financial needs, check out our guide to car payment options.