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The Guardian - UK

Business

Hilary Osborne

Car insurance: drivers paying monthly ‘face interest charges of more than 30%’

Insurance Poverty Which

Woman filling in car insurance form — Car insurance firms give customers the choice of paying one annual premium or paying in stages over the course of the year. Photograph: Andriy Popov/Alamy

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.

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