Alternative payment methods

Alternative payment methods in insurance represent non-traditional mechanisms, such as ACH transfers and mobile payments, that insurers accept for premium or claims transactions. US insurers increasingly allow policyholders to pay premiums via Apple Pay and PayPal; 24% of top property-casualty carriers supported these as of 2023.

Health insurers often offer recurring EFT setups, enabling automatic withdrawal from checking accounts monthly; UnitedHealthcare and Anthem both provide this option. Life insurance providers let customers pay with online bill pay through major banks like Chase and Wells Fargo, streamlining account management.

Some auto insurers, including GEICO and Progressive, accept debit cards for immediate policy activation or renewal. Insurers sometimes incentivize electronic payments with discounts–Nationwide gives a $30 annual discount for setting up recurring ACH payments.

Certain dental and vision plans accept Health Savings Account (HSA) cards for premium remittance; Delta Dental and VSP list HSA/FSA among approved payment forms. Mobile wallets comprise 12% of digital insurance payment volume according to the Federal Reserve’s 2022 report.

Commercial insurers may permit wire transfers for large premium payments exceeding $10,000, especially for business liability policies, according to documentation from Your Insurance Info. E-checks allow paperless processing and nearly instant confirmation, adopted by firms like State Farm since 2018.

Cryptocurrency remains rare but select brokers and specialty insurers, such as InSure DeFi, piloted Bitcoin acceptance starting in 2021.