#21 ·
Andrew Rogers15 said:Look, >, since you clearly know everything there is to know about Allianz, I’ll say it again: paying the annual premium upfront is just smarter. Like you pointed out, if you use a Mastercard, the surcharge is only about 3.5%, whereas monthly installments usually bump that up to 5 or 6 percent. And before anyone starts—I wasn't "claiming" that this applies to every single card type; I already said it doesn't. But I am standing by my word: paying the full year at once on a credit card is more cost-effective, and nobody can argue with that math. Even with the extra fee, it’s still cheaper than dealing with those annoying paper checks or money orders. Plus, the bill gets bundled right in with all your other monthly expenses. You aren't going to forget to pay your credit card statement, whereas you could easily lose track of a random check or ignore a bill sitting on the counter. Furthermore, let's say you set up your policy in December and pay via card—that's perfect timing because you'll be looking at that tax refund for the previous year soon. Honestly, you seem to get worked up the second someone mentions Allianz; take it easy, it’s not good for your blood pressure. Oh, and I didn't realize they had those specific co-owners, which actually makes it even worse when they can't accommodate their own clients by offering an annual payment option without a markup.
Honestly, just paying cash upfront is the best move. For the seller, taking an American Express is great, and for the client, there isn't much difference. That extra 1% or so doesn't even hurt. Plus, the seller doesn't have to worry about the policy getting canceled for non-payment.
I also mentioned that it doesn't work the same for every card, so I wasn't "arguing." Again, I stand by my point: paying the annual premium with a card is more cost-effective, and nobody can tell me otherwise.
Sure, but if you're short on cash, you might end up overdrawing your account if the card hits your paycheck. Those overdraft fees are way higher than that tiny 1% fee! But if you don't have the money, you can just skip a check or a bill and catch up later. It all depends on how you look at it. 😉
No matter what the fee is, it's smaller than paying via individual checks. Plus, the bill comes all at once along with your other monthly credit card expenses, so you won't forget to pay it. You could easily overlook a random paper bill.
That's the point—you can skip a check if things get tight and fix it later, but if you go into the red on a card, there's no turning back.Furthermore, say you set up a policy in December and pay by card—that's awesome because you'll get your tax refund for the whole year.
That’s the only real perk and why the fee is lower, though you did say there is no fee. So really, the only benefit is that tax refund.
Let's be real, I sell these kinds of policies too. Either they're annual, or I don't bother with them because monthly plans are too risky. Does this offer a real advantage? Not a huge one. Sure, people "feel" like using their card is better, but mathematically, it's basically the same. It's just that Americans are used to putting everything on a card, so it makes the sale easier. I don't even mention monthly options; I talk annual numbers, and when they ask about monthly, I just say we can do it on a card. 😉 I don't sell via paper checks anymore. Using a card isn't exactly a "perk"—cards aren't designed to be perks. But you probably already know that.