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News: Car insurance industry 'makes millions from Brits who pay...
Car insurance industry 'makes millions from Brits who pay monthly'
By Tom Farley, Mon 9 Jun 2008 - Published in Car Insurance
Motorists who are struggling to meet the rising cost of car insurance are forking out £624 million a year to pay in monthly instalments, according to uSwitch.
The website claims that annual motoring costs have soared by almost £500 in the past 12 months, with the average British driver shelling out £2,486 to insure and fuel their car.
It states that over half of all UK policy holders choose to pay for their insurance in monthly instalments and that by doing so they are paying almost £50 a year extra.
Commenting on paying monthly, Ashton Berkhauer from uSwitch said: "It may seem like a neat solution if you're cash strapped but it carries a hefty interest price tag so should be avoided where possible."
However, he accepted that for those who cannot afford to pay for car insurance in one lump sum, the option to pay monthly "could be a godsend".
Research by Fairinvestment.co.uk found that for 57 per cent of motorists the most important feature of car insurance is the price.