UK motor insurance customers who choose to spread the cost of their policy are likely to end up paying more than they expected with many providers proving to be far from transparent about the costs of paying for insurance monthly.
UK car insurance providers should be enforced to clarify the increased costs of paying by direct debit according to financial research company Defaqto, who has released a report underlining the current challenges that the car insurance industry faces.
The attraction of paying for insurance in monthly instalments is that it is a way of budgeting for car insurance more easily instead of paying it all off in one significant lump sum. Although some insurers don’t charge extra for paying monthly, there are providers who charge as much as 11 percent extra than the original agreed quote.
Mike Powell, author of the report and Defaqto’s insight analyst for general insurance, said: "What should be a concern for the industry is the number of policies where the level of fees to be charged is unclear to the consumer. Professional researchers sometimes struggle to find this information, so what chance does an uninitiated customer stand?"
Posted:
20/08/2010 09:27:53 by
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