Some home insurers are charging nearly 35 APR on monthly payments, the consumer group said.
The rates being charged by some insurers to pay for monthly cover resemble the interest applicable for credit card borrowing
“We offer a range of APRs from 5% to enable us to provide credit to as many customers wishing to pay monthly as possible, including those with low or poor credit scores. Over the past quarter less than 2% of customers paid our highest APR.” Co-op Insurance said an insurance partner performs regular benchmarking, adding: “This benchmarking has led us to review these rates and we are looking to reduce them; we will update our customers on this as soon as we can.
Which? said that, in January this year, the average credit card rate was 34.8% with the majority of cards charging up to 25%. Which? said the regulator should produce an action plan to make sure that firms are providing fair value in the interest rates they are charging customers. It called for a league table of providers to be produced by the regulator.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Insurers charging rates similar to credit cards for monthly coverSome home insurers are charging nearly 35% APR on monthly payments, the consumer group said.
Read more »
Record £573m paid out by insurers for storm damage across UKRecord pay out as serial storm-lashed Britain suffers flood and frozen pipe damage
Read more »
US insurers use drone photos to deny home insurance policiesOf course, it helps if you don't live in a potential disaster zone
Read more »
Motor Insurers Pay Out Record Amount in Claims in 2023Motor insurers paid out a record amount in claims last year, according to the Association of British Insurers (ABI). The £9.9 billion paid out in 2023 is the highest annual figure since the ABI started collecting data in 2013. The overall number of claims settled, at 2.3 million, also rose by 10% compared with 2022. Payouts for vehicle theft and thefts from vehicles also jumped, to £669 million. This total, and the average theft of a vehicle claim of £12,600, were both the highest on the ABI’s records. The cost of providing temporary replacement vehicles, at £597 million, increased by 35% compared with 2022.
Read more »
Anti-Oil Activists Up Their Game Against Insurers Of Big OilThe threat of reputation damage is unlikely to be enough to make that industry use its superpower to kill oil and gas.
Read more »
Insurers are STILL stinging drivers by undervaluing written-off cars, says FCAIf your car is damaged to the point it cannot be driven or fixed, insurers are meant to pay you a fair sum. But the city regulator has warned that's not happening.
Read more »