Several weeks ago I went to my local Office Depot and with my new Ink Bold MasterCard I purchased a Vanilla VISA card for $500 plus the $4.95 fee. After activating this prepaid card I called State Farm and told the representative I wanted to make a prepayment for my automobile insurance. (State Farm does not except AMEX here in Pennsylvania.) I received an email confirmation from State Farm that my payment had been applied to my auto insurance. So I was happy to earn more than 2500 Ultimate Rewards points and have $505 towards my $10,000 spend on the card.
Today I opened my snail mail and found a check from State Farm for $500. The note with the check stated that this $500 was for an overpayment on my account. I deposited the check into my checking account and expect to receive my insurance bill early next month. I plan to purchase more Vanilla VISA Cards to pay my insurance. Looking forward to earning more Ultimate Rewards points and I hope sharing this will help you earn more points too.
What is your experience making advance payments for insurance with prepaid cards?
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