Can I pay my insurance deductible with a credit card?
Short answer. Usually yes, because on a roof claim you pay the deductible to your contractor, not to the insurer, and many roofers accept cards. Some pass along a processing fee, and carrying the balance at a card's interest rate can cost more than a financing plan, so compare before you swipe.
Who you are actually paying
Your insurer never bills you for a deductible on a property claim. It simply pays that much less. The contractor collects the difference as part of the contract price, so the payment methods are whatever the contractor accepts: check, card, bank transfer or financing. Ask up front which methods the contractor takes and whether any fee applies.
Card advantages
- A clear record of payment and dispute rights if work is never done.
- Rewards points.
- A few weeks of float if you need it.
Card drawbacks
- Processing fees of a few percent that some contractors add.
- High interest if you carry the balance.
- Credit limits, if you have a large percentage deductible.
Other ways to spread it out
- Contractor financing with fixed monthly payments.
- A home equity line, for very large percentage deductibles.
- Setting money aside now: a 2 percent wind and hail deductible on a $300,000 dwelling limit is $6,000. See percentage deductibles.
What is never acceptable
A roofer offering to skip, shrink or rebate your deductible is breaking Georgia law. Card or cash, the full deductible is part of the price. See can a roofer pay your deductible.