Car owners who pay for their insurance monthly rather than with a one-off lump sum are being charged interest of more than 30%, research has found, in what has been described by campaigners as a “poverty premium”.
Insurers give customers the choice of paying one annual premium or breaking it up and paying over the course of the year.
However, while the monthly payments are lower, the total cost is typically higher because the premiums are treated as a loan, and insurers add an…
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