Households Struggling with High Interest Charges
Households are being warned about an easy insurance mistake that could add hundreds of pounds to their bills. Motorists are facing staggering 40% interest charges when paying for insurance monthly, while home insurers are charging a hefty 35% APR on monthly payments, according to research by Which?.
Rising Insurance Costs
Car insurance premiums have soared by 56.4% in the last year, with home insurance premiums also increasing by 40%, putting additional pressure on households. Many insurers charge extra fees for monthly payment plans, making it difficult for customers to manage their budgets.
How to Avoid the Costly Mistake
Customers can avoid these charges by paying annually, but for many households, this may not be feasible. Insurers often apply varying APRs to monthly payments, with some not disclosing their rates. It's essential to shop around for the best deals and consider adjusting your excess and job title to save money on premiums.
Cutting Car Insurance Costs
By tweaking your excess and making small but accurate changes to your job title, you can lower your car insurance premium. Shopping around for renewal quotes from different comparison sites and insurers like Direct Line can also help you find the best price.
Reducing Home Insurance Costs
When it comes to home insurance, never settle for your current provider's renewal quote. Check comparison websites, assess the cover you need, and consider factors like security measures at home to lower your premiums. Renewing your policy well ahead of time can also save you money.
Don't Fall for High Charges
It's crucial to be aware of the potential high interest charges on monthly insurance payments and take steps to avoid them. By being proactive and informed, you can prevent unnecessary financial strain and ensure you're getting the best deal on your insurance.
Did you miss our previous article…
https://hellofaread.com/money/popeyes-introduces-double-stack-sandwich/
