Big bills come with big earning potential, and if you’re into points and miles, you already know this. Auto insurance is one of those recurring costs that can help you collect a solid number of points—if you use the right approach.
Whether you’re aiming to meet a spending requirement for a welcome bonus or just want to get the most value out of every dollar, understanding how to turn insurance payments into rewards is a smart move.
Here’s a breakdown of how to earn points when paying for auto insurance, why using a credit card can be a game-changer, and strategies to get the most out of your spending.
Auto Insurance Costs: What to Expect and How to Make the Most of It
Car insurance isn’t cheap, and the numbers prove it. In 2025, the average annual premium nationwide hit $2,638—a 12% jump from the previous year, according to Bankrate.
That said, what you pay can swing dramatically based on several factors. Your driving record, credit history, type of vehicle, and even where you live all play a role in determining your rate.
Some states are far pricier than others. Florida and Louisiana top the list, with annual premiums averaging $4,171 and $3,978, thanks to a mix of extreme weather risks, high car theft rates, and other local factors that make insurance companies nervous. On the other end, Idaho and Vermont are the least expensive, with average premiums of $1,454 and $1,470.
Adding a teenage driver to your policy? Expect your rate to spike. Insurance companies see young drivers as high-risk, which means higher costs. The good news? Many insurers offer discounts if your teen maintains good grades or completes an approved driving safety course.
With car insurance eating up 3.39% of the average American’s income in 2025, it makes sense to turn this unavoidable expense into an opportunity. Using a credit card that earns points, miles, or cash back can help offset some of the cost, letting you squeeze extra value out of something you have to pay for anyway.
Auto Insurance Companies That Accept Credit Card Payments
Not every auto insurer lets you pay with a credit card, but plenty do. If you’re trying to rack up points or cash back, it’s worth knowing which companies allow it. Here are some big names that make it possible:
- Farmers
- Mercury
- USAA
- GEICO
- State Farm
- Clearcover
- Travelers
- Allstate
- Bristol West
- Lemonade
- Safeco
- Nationwide
- The General
That’s not the full list, so if your provider isn’t here, don’t assume it’s a no. A quick call or a check on their website can give you a definite answer.
Now, if you’re thinking about switching insurance companies, here’s something to keep in mind—applying for new credit cards right before shopping for a policy can backfire. When lenders run a hard inquiry on your credit report, your score can take a small hit. And since insurers factor in credit scores when calculating premiums, that minor dip could mean a slightly higher rate. To be safe, it’s best to avoid new credit applications for at least two months before requesting a quote.
Since we have to pay for insurance anyway, why not use it as a chance to earn rewards? If your provider takes credit cards, it’s an easy way to squeeze a little extra value out of an unavoidable expense.
Smart Ways to Use Your Credit Card for Auto Insurance Payments
Turning a major expense like auto insurance into thousands of points or miles is easier than you might think. With the right strategy, you can maximize your spending without overspending. Here’s how to make the most of it:
#1. Use It to Unlock a Welcome Bonus
If you just got a new rewards credit card, paying for auto insurance is one of the best ways to hit the minimum spending requirement for a welcome bonus. These bonuses are some of the most valuable perks in the credit card world, often worth thousands—or even hundreds of thousands—of points.
Most cards require you to spend anywhere from $500 to $20,000 within the first three to six months to qualify. If your auto insurance bill is high enough, you might hit that threshold with a single payment. Even if it doesn’t cover the full requirement, it can get you a good chunk of the way there.
If your goal is to earn a welcome bonus, monthly payments won’t cut it. Since these offers are time-sensitive, it’s better to pay your premium in full—either semiannually or annually—to meet the spending requirement in one go.
This approach has another advantage: some insurers offer paid-in-full discounts, meaning you could save money just for knocking out the entire bill at once. Plus, you’ll avoid those annoying monthly service fees that some providers tack on.
Using a credit card for auto insurance payments only makes sense if you pay off the balance in full before the due date. Otherwise, the double-digit interest rates on most credit cards will wipe out any rewards you earn. The goal here is to maximize value, not add unnecessary costs.
#2. Earn a Free Night or Companion Ticket Using Auto Insurance Payments
Welcome bonuses aren’t the only perks that come with spending a certain amount on a credit card. Many airline and hotel co-branded cards offer companion tickets and free night awards, but you’ll need to meet an annual spending requirement to unlock them.
If you’re not working toward a new welcome offer, your auto insurance bill can still be put to good use. Charging it to a co-branded airline or hotel credit card that comes with these perks can help you inch closer to the required spending amount.
Cards That Offer Companion Tickets and Free Night Awards
- Aer Lingus Visa Signature® Credit Card – Spend $30,000 in a year for a free economy companion ticket.
- Alaska Airlines Visa Signature® Credit Card – Spend $6,000 in an anniversary year to get Alaska’s $99 Companion Fare™ (plus taxes/fees from $23).
- British Airways Visa Signature® Credit Card – Spend $30,000 in a year to earn a Travel Together Ticket, which lets a companion fly on the same award ticket or gives you a 50% Avios discount on a solo flight.
- Iberia Visa Signature® Credit Card – Spend $30,000 in a year to get a $1,000 discount toward two Iberia tickets.
- Hilton Honors American Express Surpass® Card – Spend $15,000 in a year for a free night award.
- Hilton Honors American Express Aspire Card – Earn a second free night after spending $30,000 and a third after spending $60,000 in a year.
- World of Hyatt Credit Card – Spend $15,000 in a year to get a second free night award at a Category 1-4 Hyatt hotel.
- Marriott Bonvoy Bountiful™ Credit Card – Spend $15,000 in a year for a free night award (worth up to 50,000 points).
- Marriott Bonvoy Business® American Express® Card – Earn a second free night after spending $60,000 in a year.
- Marriott Bonvoy Bevy™ American Express® Card – Spend $15,000 in a year for a free night award worth up to 50,000 points.
Your insurance bill probably won’t get you to $15,000 or more on its own, but it can close the gap if you’re falling short of a spending threshold. Since most of these benefits work on a full calendar or anniversary year, you have more time to accumulate the required spending compared to welcome bonuses.
#3. Turn Auto Insurance Payments Into Extra Rewards
Even if you’re not chasing a welcome bonus, a free night, or a companion ticket, there’s still a smart way to earn back some of what you spend on auto insurance.
One of the best ways to maximize your auto insurance payments is by using the Chase Freedom Flex® when PayPal is part of its 5% rotating bonus categories. Chase often includes PayPal in these quarterly promotions, meaning if your insurer allows PayPal payments, you could earn 5% back on your premium.
But here’s where it gets even better—if you also have Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, or the Ink Business Preferred® Credit Card, you can convert that cashback into Ultimate Rewards® points.
How Much Can You Earn?
Let’s say your annual auto insurance bill is $3,000, and PayPal is an eligible category:
- The Chase Freedom Flex earns 5% back on up to $1,500 per quarter. That means you’d earn 7,500 points on the first $1,500 and 1,500 points on the remaining $1,500 (at 1X points per dollar).
- In total, that’s 9,000 Chase Ultimate Rewards® points.
If you transfer those points to:
- Chase Sapphire Preferred® or Ink Business Preferred®, they’re worth 1.25 cents each when redeemed through Chase Travel℠, making them worth $112.50.
- Chase Sapphire Reserve® bumps that value up to 1.5 cents per point, making them worth $135.
- If you transfer them to one of Chase’s 14 travel partners, you could potentially get even more value—enough for a domestic flight or a hotel stay.
Not all insurers support PayPal as a payment method, so be sure to confirm before going this route. If PayPal isn’t an option, using a high-earning rewards card still makes sense—whether it’s for cash back or transferable points.
#4. Top Credit Cards for Earning Rewards on Auto Insurance Payments
If you’re not working toward a specific spending requirement, the best credit cards for paying auto insurance are the ones that offer higher-than-average rewards on everyday purchases. Instead of settling for a basic 1X point or 1% cashback, using a card with a better baseline rate can help you earn more from a necessary expense.
The Chase Freedom Flex® is a fantastic option when PayPal is part of its rotating 5% bonus categories—but if your insurance bill doesn’t align with that timeframe, or if your insurer doesn’t accept PayPal, you’ll need other options.
Best Credit Cards for Auto Insurance Payments
- Bank of America® Customized Cash Rewards Credit Card – 1.25% to 1.75% cashback for eligible Preferred Rewards® members.
- Blue Business® Plus Credit Card from American Express – 2X points on all purchases (up to $50,000 per year, then 1X).
- Capital One Venture Rewards Credit Card – 2X points on non-bonus category spending.
- Capital One Venture X Rewards Credit Card – 2X points on non-bonus category spending, with premium travel perks.
- Chase Sapphire Preferred® Card – 1X points, but redeemable for 1.25 cents per point through Chase Travel℠.
- Chase Sapphire Reserve® – 1X points, but redeemable for 1.5 cents per point through Chase Travel℠.
- Citi Double Cash® Card – 2% cashback on all purchases (1% when you buy, 1% when you pay).
- Ink Business Unlimited® Credit Card – 1.5% cashback on non-bonus category spending.
- U.S. Bank Shopper Cash Rewards® Visa Signature® Card – 1.5% cashback on non-bonus category spending.
Since auto insurance payments don’t typically fall under bonus spending categories, using a high flat-rate card ensures you still get a decent return.
Make Your Auto Insurance Payments Work for You
Big expenses are a fact of life, and auto insurance is one of those recurring costs you can’t avoid. Whether you pay monthly, annually, or semiannually, there’s an opportunity to turn that spending into something more rewarding.
By using a credit card that earns points, miles, or cash back, you’re not just covering a necessary expense—you’re stacking up rewards that can be used for free travel, a new welcome bonus, or perks like companion tickets and free night awards. Instead of just paying the bill and moving on, you’re maximizing every dollar spent.
Want to stay ahead with the best strategies to earn and save on everyday expenses? Join our community for free, where we share insider tips on maximizing rewards, finding the best credit card deals, and making your money work harder for you. Don’t just pay your bills—turn them into opportunities.
