Credit card cheques for monthly insurance payment, will it work?
 

dumb question, but hoping someone will know, i have some credit card cheques laying around and was hoping this will work for monthly car insurance payments, i hate having to pay full cash at one time just to insure my car since i am tight on cash... i have no time to go to the bank to get a void check... if the credit card cheques doesnt work how about just normal bank checks? are the bank cheques the same as void cheques? just that void cheques only work once to prevent fraud? i am a cheque rookie, never liked cheques cause my signature is super easy to copy

Negative. Cheques for insurance must be from a branch bank account with your name already printed on cheque.

damn, another question, would a void cheque even work if i have almost no money in the bank?? every time i put my pay cheques in my bank it goes pretty much striaght off right away to paying off my credit cards, so there is pretty much only 100 bucks or less in my bank account most of the time due to credit card payments..

edit: say if my yearly insurance payment was 2,200 a year, do i need to have 2,200 in my bank account for them to take out monthly payments?? i brought void cheques in a long time ago but didnt work, i am guessing because i didnt have enough cash in account?

If the first payment that ICBC tries to withdraw from your bank account goes NSF pretty much meaning the money was not available to be taken out, then ICBC will charge you $18 for the first time it was not able to come out. ICBC then tries to withdraw the money again a few days later. If this keeps happening or if your payment can't be withdrawn the 3rd time then your account will be closed and you will owe the whole amount to ICBC and it will follow you as a debt. In the future if you try to get auto insurance or make any changes in your insurance it will pop up saying you owe money and are not allowed to do any transactions. ICBC will also not allow you to go on monthly payment again until you built up a credit with them for few years.

okay so pretty much when i hand in the void cheque i have to make sure i have atleast 300 bucks in my bank account which will cover for the first month of insurance.

Why not just pay with your CC? I pay mine in full every year on my CC.

that way you would have to pretty much have pay off in full the next month right? i dont have the money to pay off in full, if i do i will be late for my credit card payment next month lol.. so monthly payments would be best for me.

Just pay for a month of insurance on your credit card.

minimum is 3 months. that is what i usually pay on my credit card, but the thing is my aircare is due in a few months so i wanna pay off for 1 year and i kind of dont have enough cash for that, unless i pay off monthly from automatic withdrawels from my bank account

Take the bus?

he's saying pay your entire premium on your CC.

however, to answer your question: yes, have enough money in your account on the day payment is withdrawn and you'll be fine.

I think you can also set it up on monthly payment and go into an autoplan insurance place to 'prepay' every month a few days before your withdrawal date. It will just be left sitting on your account as a credit, therefore the credit will be the first amount they access first before your bank account.

apply for overdraft at your bank

my plan is to get a void check, make sure i have at least $500 in bank account befor i hand in the void check to the insurance guy and i should be good to go. thanks all!

You can set it up on monthly payments with a void cheque or a pre authorization form. As others have said, you can "pre-pay" for that particular month using credit card, cash or debit.

If you the withdrawal comes out and there's no money:

1. The payment will come back
2. Will try again in few days and plus a $18 NSF charge
3. If second try comes back again
4. ICBC will try a final third attempt (double-up) next month, for 2 payments (previous month + current month).
5. If this "double-up" payment returns, there is another $18 charge and icbc will close the account. You will then need to pay the difference in full.
6. If you don't pay in full, it will turn to debt owed to icbc. icbc will first remove optional coverages off your insurance, and the refund will be applied to debt.
7. If you still don't pay the difference they will send out a bailiff to get your plates and you are then forced to cancel (refund gets applied to debt), and if you want to re-insure your vehicle you must pay the difference.
8. You will be placed on "cash status" for the next 2 years = no payment plan.

also remember, the bank may charge you a 42.50 NSF charge on the banks end too, so 42.50 + 18 all together.

Why does aircare factor into this? Are you trying to avoid aircare?

Sounds like you have credit card problems. How much credit card debt do you have. I would fuck driving untill my debt is in order.

First time i tried using those cheques found out they have like a 25$ service charge or something. Never again.

just get a direct deposit from the bank... go to your insurance and do a pre-authorized payment on your credit card...

thats what i do... i pretty must use my credit card.. put 85-90% of my money onto my card, keep 10-15% in my savings account to save up... prolly a bad idea but oh wellz...

Guy, you need to learn some financial basics.

A "void cheque" is a regular personalized cheque with the letters VOID written across it (by you). You make it. You take a regular cheque (for your bank account) and take it to the insurance broker. The numbers on the bottom of the cheque allow ICBC to debit your bank account for the payments.

If you don't have the money for your payments in the bank account, the payment bounces. ICBC will even give you a print out of when the payments are going to be taken out of your account, and for how much. So you can plan ahead.

You need financial help.

i don't actually but almost, i don't use cash, i use a credit cards to pay for everything unless its $10 or under. reason for this is so i can track my spendings. pretty much i have been spending my money on stupid things, maybe that can stop and i can actually save some money if i use my brain properly. barely making enough money to get by but atleast i am not in debt yet, 10 bucks an hour is not helping me much..



my aircare is over in feb which is 3 months from now, i usualy insure my car every 3 months and if i do that now than i will have to renew my aircare when the insurance is over and i don't wanna go threw the hassle.

but if i insure for maybe 6 months or 12 months that would hold off air care for a bit, i am not sure if it will pass because the car is a 88 shitbox

You don't have to have all the money in the bank all the time. Just make sure you have the amount for your due date. My insurance payments come out of a bank account I barely use. I just make sure I put money in it every month.

Credit cards to track your spending? Ever heard of bank statements, and online banking? I know I am coming across as a dick but you should chop up them cards.

For me personally, credit cards are only for online purchases, buying flights/hotels, and other random only credit card uses. So my total transactions a month are 3-5. I don't buy a flight etc unless I have preloaded the visa account. 18% interest is silly and bad habits are easy to fall into.

Adjust living to means accordingly.

I'm the opposite. I buy everything on my credit cards. I pay it all off fully every month too. I figure that if I'm buying essential goods regardless, why not buy it on one of my cards that gives me a good return, rather than paying cash or using debit and not getting anything back.