Insurance: Manufactured Spending

Old Dec 4, 18, 4:11 am
  #1  
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Insurance: Manufactured Spending

I had Geico auto insurance and got a better quote from State Farm. Went into a local agent's office and purchased a 6 month policy using a credit card. When I called to cancel my Geico policy they countered and gave me a better rate. So when I cancelled the State Farm policy that I just bought they sent me a reimbursement check instead of crediting my credit card. Either way I'm saving money and would have gotten a refund from Geico if they had not countered so it was a win-win situation.

Just wondering if anyone else had been doing this and if anyone can share which insurance company issues a refund via check. The good thing is you can shop around anytime and if you switch insurance companies they usually send you a prorated refund check. You also save money if you get a better rate. You could also choose a more expensive policy with the most expensive coverage and cancel that as well, but you may be wasting the agents time if dealing with a local one which is probably not nice.
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Old Dec 4, 18, 5:39 am
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Originally Posted by ICEE45 View Post
I had Geico auto insurance and got a better quote from State Farm. Went into a local agent's office and purchased a 6 month policy using a credit card. When I called to cancel my Geico policy they countered and gave me a better rate. So when I cancelled the State Farm policy that I just bought they sent me a reimbursement check instead of crediting my credit card. Either way I'm saving money and would have gotten a refund from Geico if they had not countered so it was a win-win situation.

Just wondering if anyone else had been doing this and if anyone can share which insurance company issues a refund via check. The good thing is you can shop around anytime and if you switch insurance companies they usually send you a prorated refund check. You also save money if you get a better rate. You could also choose a more expensive policy with the most expensive coverage and cancel that as well, but you may be wasting the agents time if dealing with a local one which is probably not nice.
Wouldn't it just be easier to buy a single $500 GC and pay the $5 for it and get your MO?
That is about what one spends for auto insurance unless you are in a high cost state (which will be the equivalent of 2 or 3 GCs??)

I am not trying to be snarky. You are going to go through a pile of stuff (submitting applications, transmitting personal information, submitting fees by CC) and then cancelling and waiting for a refund by check (which could realistically take weeks) for a measly $500 to $2000 (at best).???

Finally, in insurance areas which have high premiums (such as life insurance and disability) the companies don't allow you to use a credit card or money orders for that matter (at least mine don't). And if you read the small print very closely on these, the payments (if anything other than a personal check) get reported to the Feds as a cash transaction (I guess to prevent criminals from using life insurance to do MLing).

For me, this goes into the catagory of "Buy an item at store with CC, return it and try to get cash back for it . Not my cup of tea, thank you.

i
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Old Dec 4, 18, 5:46 am
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Originally Posted by radonc1 View Post
I am not trying to be snarky. You are going to go through a pile of stuff (submitting applications, transmitting personal information, submitting fees by CC) and then cancelling and waiting for a refund by check (which could realistically take weeks) for a measly $500 to $2000 (at best).???

Finally, in insurance areas which have high premiums (such as life insurance and disability) the companies don't allow you to use a credit card or money orders for that matter (at least mine don't). And if you read the small print very closely on these, the payments (if anything other than a personal check) get reported to the Feds as a cash transaction (I guess to prevent criminals from using life insurance to do MLing).
I think most insurance companies ask for SSN these days.
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Old Dec 4, 18, 5:28 pm
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Wouldn't it just be easier to buy a single $500 GC and pay the $5 for it and get your MO?
That is about what one spends for auto insurance unless you are in a high cost state (which will be the equivalent of 2 or 3 GCs??)
It's just another option. You can never have too many options and some methods may become extinct or harder to complete one day. That's how I'd like to think of it because the game is always changing.

I am not trying to be snarky. You are going to go through a pile of stuff (submitting applications, transmitting personal information, submitting fees by CC) and then cancelling and waiting for a refund by check (which could realistically take weeks) for a measly $500 to $2000 (at best).???
I would say the main objective could just be to save money on your auto insurance. Manufactured spending can come as a bonus. Some people may have multiple family members on a policy or expensive cars/homes. You should always shop for better rates.
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Old Dec 4, 18, 7:54 pm
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I overpay my car ins. by 2x every 6 months and so far have gotten paper check mailed to me for the overage ~6 wks later. Have not tried more. Is about 1800 x .2.625% for a rebate of ~47 twice a year. Small potatoes, but other than the float is fee-free and painless. Also overpay fed. IC tax just before filing (to reduce float time), but fees of 1.87% cut into rebate so only 75 made per 10K charged. Used to overpay real estate tax too and get check but current loan terms require escrowing. Overpay med bills when I can use CC via web, and do get a check back (sometimes takes 2 mo.) but have only done small amounts. Not sure what they'd do with a 2K overpay.Have tried overpaying power, water, mobile, and cable but they just hang onto the $$. Back when Discover had 10% back on Apple Pay I found I had to pay at ATT store (corp. not franchise) because website limited overpays - ran that one up to over 3K (in chunks of 380-ish) for a solid 300 rebate. Guy there had to override POS warning but was able to do. Did not try paying at in-store kiosk.
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Old Dec 5, 18, 2:18 am
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I've paid my homeowners insurance, which is paid by escrow early - and I've been cut a check. Same idea.. Always try to get a little generic spend in during this time of year.
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Old Dec 5, 18, 6:51 am
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Most all dental practices I've been to make you pay (or at least give you the option) up front and then they handle the claim with insurance and cut you a check in 2 weeks.
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Old Dec 5, 18, 4:57 pm
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Very good info guys! I appreciate it and it's great to learn new ideas that I've never thought of before.
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