Tens of millions of UK customers are nonetheless paying off money owed used to purchase insurance coverage regardless of the insurance policies having expired, analysis suggests.
A examine commissioned by Premium Credit score calculated that 2.three million individuals within the UK are nonetheless servicing debt repayments for insurance coverage merchandise they not want, with the common debt at £229. This equates to round £530m in whole.
Whereas the bulk (43%) had money owed of as much as £100, one in 20 customers mentioned that they had money owed of £1,000 or extra.
The survey additionally discovered that 41% of customers are counting on credit score in response to cost rises on motor, house, pet, journey and life insurance coverage premiums. One in 5 (21%) mentioned they should borrow as their disposable revenue is being squeezed.
The preferred type of credit score to unfold the price of insurance coverage is bank cards that are being utilized by 60%. Nonetheless, 39% plan to make use of premium finance and pay month-to-month for insurance coverage moderately than in a single lump sum.
Adam Morghem, technique and advertising and marketing director at Premium Credit score, mentioned selecting the suitable credit score technique generally is a smart, handy solution to buy insurance coverage.
“Premium finance was particularly developed to fulfil this want and is more and more being utilized by UK customers to purchase essential insurance coverage far more effectively,” he added.
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