Insurance, Charge for Direct Debit - 29 percent !

[J4CKO]

Have been reviewing all my direct debits and the insurance for the people carrier, the charge to pay it monthly was £41.68 ! 29 percent APR, I like direct debit as it avoids peaks and troughs in monthly outgoings but I am going to pay them all in full this time if I can, that is quite a steep APR for £368 worth of credit.

Dread to think how much interest young people are paying, would be better to pay it on a credit card than though the insurance co, going to make sure that the money is there for the next renewal.

Not a vast amount but am annoyed with myself for not spotting it and paying £41.68 I didnt have to.

[ben5732]

My insurance at 24 is around the 800 mark, if I paid monthly it was over 1400!

[Sam1990]

J4CKO said:

Dread to think how much interest young people are paying, would be better to pay it on a credit card than though the insurance co, going to make sure that the money is there for the next renewal.

This. Stick it on a credit card with 0%APR, pay off, don't use credit card until next renewal. Sorted.

[Razzy Man]

Paying monthly for my policy and I remember when shopping around, I saw a quote from elephant that was £1045 (note I am 21 and live in a crappy post code) but that was yearly, monthly it would have worked out at £1870 or something.

[nosittap]

Was paying £206 a month in my first year driving due to the 'pay monthly APR rape' they quoted me around £1600 initially and I don't have that kind of spare cash at the time, but you loose the 'online discount' and then get charged APR on top, £2472 for insurance my first years cost me!

It's dropped a fair bit since mind, paying it up front works out at £65pm now, if I'd paid monthly it would have been over £100pm.

They charge that much simply because they can, if it's the high ranking naval officer company they are much cheaper than anyone else even with the APR rape.

[deadslow]

Another brilliant insurance/financial services rip-off. Insurance products are consumed day by day and ought to be purchased like newspapers - you would never expect a newsagent to insist you paid for a full year in advance, then offer you extortionate credit to 'assist' with your purchase. Free monthly payment arrangements for insurance ought to be the norm.