Most people assume that if a credit card doesn’t reward insurance payments, it’s useless for premiums. That’s only half true. In 2026, several premium credit cards still allow insurance premium payments to count toward milestone or annual spend targets — helping you unlock fee waivers, vouchers, free nights, or bonus rewards.

This guide explains which cards actually allow this, how it works in practice, and how to use insurance premiums strategically.

What Does “Insurance Counts Toward Milestones” Mean?

Even if a card does not give reward points on insurance premiums, it may still:

  • Count insurance payments toward annual spend milestones

  • Help unlock:

    • Annual fee waivers
    • Travel vouchers
    • Bonus points
    • Free hotel nights

This is especially valuable when:

  • You pay large annual premiums
  • You hold premium credit cards
  • You are close to a milestone threshold

Cards Where Insurance Payments Count Toward Milestone Spends (2026)

🏆 HDFC Regalia Gold / Infinia / Diners Club Black

Why they work

  • Milestones based on total eligible retail spends
  • Insurance payments usually post as retail transactions
  • Helps unlock:
    • Annual fee waivers
    • Travel vouchers
    • SmartBuy bonus rewards

Best for:
High-income users paying ₹50,000+ in annual insurance premiums

Watch out:
Reward points may not post, but milestone spend usually counts. Always confirm MCC eligibility.

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🏆 SBI Prime / SBI Elite (Variant-dependent)

Why they work

  • Milestone rewards based on annual cumulative spends
  • Insurance often contributes toward spend targets

Best for:
SBI cardholders targeting milestone vouchers

Watch out:
SBI rules change frequently — confirm for your specific variant before payment.

Apply Now

🏆 ICICI Emeralde / Times Black (Premium ICICI Cards)

Why they work

  • Milestones based on total spends
  • Insurance premiums typically count toward spend thresholds

Best for:
Users with large premiums and ICICI premium cards

Cards That Do NOT Count Insurance for Milestones

Avoid using insurance premiums on:

  • Axis Magnus
  • Axis Atlas
  • Axis Select / Privilege

Insurance is explicitly excluded from both rewards and milestone calculations on most Axis cards.

 

Smart Strategy: How to Use Insurance to Unlock Milestones

1️⃣ Check how close you are to a milestone
2️⃣ Time insurance premium payments to push you over the threshold
3️⃣ Confirm eligibility with bank support (email/chat)
4️⃣ Keep proof if milestone benefits matter

Who Should Use This Strategy?

  • Premium cardholders
  • Users paying large annual insurance premiums
  • People aiming for fee waivers or milestone rewards

If you don’t track milestones, this strategy won’t help.

 

Apply & Earn via PickMyWork

With PickMyWork, you can apply for these Milestone-based cards and also earn by helping others apply.

How it Works

  1. Download the PickMyWork app
  2. Sign-Up with Mobile Number (no investment)
  3. Promote the right Credit Card – You will find it in the Credit Card Section
  4. Earn incentives for each successful activation

Perfect for: gig workers, students, part-time earners, and anyone in Tier 2/3 cities.

👉 Start exploring these cards now — and earn with PickMyWork by helping others discover them.

Insurance premiums may not earn points — but on the right cards, they can unlock far more valuable benefits.

Used strategically, insurance becomes a milestone accelerator, not a dead expense.

 

Frequently Asked Questions (FAQs)

    • Do insurance payments earn reward points on credit cards?
      In most cases, no. Insurance premiums are usually excluded from reward points. However, on some cards, insurance payments still count toward milestone or annual spend targets, which can unlock other benefits.

 

    • Which credit cards count insurance payments toward milestone spends?
      Premium and mid-premium cards from HDFC, SBI, ICICI, Kotak, DBS, and Standard Chartered are more likely to count insurance premiums toward milestone spends. Axis Bank core cards usually do not.

 

    • Do HDFC credit cards count insurance payments for milestones?
      Yes, many HDFC cards (like Regalia Gold, Diners Club Black, Infinia, and Regalia First) typically treat insurance payments as eligible retail spends for milestone calculations, even if reward points don’t apply.

 

    • Do SBI credit cards allow insurance spends to count for milestones?
      On cards like SBI Prime and SBI Elite, insurance payments often contribute toward annual milestone spends. However, this can vary by card variant and policy updates, so confirmation is recommended.

 

    • Do Axis Bank credit cards count insurance for milestone benefits?
      Most Axis Bank core cards (Magnus, Atlas, Select, Privilege) exclude insurance payments from both rewards and milestone calculations.
      Exceptions are LIC co-branded Axis cards, which reward LIC premiums directly.

 

    • Do insurance payments count toward annual fee waiver spends?
      On many premium cards, yes. If the card’s fee waiver is based on total annual spends, insurance premiums can help you cross that threshold.

 

    • Does it matter how I pay the insurance premium?
      Yes. Insurance payments made – Directly on the insurer’s website or Via authorised payment gateways are more likely to be treated as eligible retail spends. Aggregators or wallets may change the merchant category code (MCC).

 

    • What are the other Credit Cards options for me?
      Check out all types of credit cards here –  Choose your credit card & fill your digital credit card application right away.
      Check out Best Credit Cards for Insurance Payment here.

 

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