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Millions of drivers warned over paying for car insurance monthly

Document Cited in Related
Vincent
Published date17 April 2024
Publication titleBirmingham Mail: Web Edition Articles (England)
Which asked 39 car insurers and 34 home insurers what APRs were being applied to monthly payments. The average rate across 27 providers that charge interest and disclosed their rate was 23.37 per cent, the consumer group found

1st Central told Which: "We understand it is important to customers that we keep the price of insurance as low as possible -and benchmarking tells us that we are competitive for both annual premiums and for those that wish to pay monthly through a credit arrangement.

"We offer a range of APRs from 5% to enable us to provide credit to as many customers wishing to pay monthly as possible, including those with low or poor credit scores. Over the past quarter less than 2% of customers paid our highest APR." For home insurance, the highest rate in the Which study was from Co-op Insurance.

A spokesperson for Co-op Insurance said: "Co-op Insurance welcomes this survey analysis from Which We recognise the importance of premium finance as a product in the insurance industry, giving customers the option to spread the cost of their insurance over the course of a year."

Co-op Insurance said an insurance partner performs regular benchmarking, adding: "This benchmarking has led us to review these rates and we are looking to reduce them; we will update our customers on this as soon as we can. At Co-op, we are committed to transparency for...

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