Finance & Insurance

Research on insurance financing shows “concerning” findings

Research conducted by Consumer Intelligence on behalf of Premium Credit has revealed “concerning” findings when it comes to financing insurance policies.

According to the insurance index study, which involved more than 1,000 adults, nearly a fourth of those who took on more credit to pay for coverage over the past 12 months have struggled to keep up. It was found that 10% of respondents who have used credit to buy insurance have taken on extra jobs.

The same poll, meanwhile, found that 9% have sold their cars, while around 6% have had to have pets put down because they couldn’t afford veterinary treatment. Also, according to Premium Credit, 4% have driven their vehicle uninsured while 2% claim to have turned to crime to raise cash to pay for insurance.

“It is concerning that people are struggling to afford important insurance and having to resort to selling their cars and taking on extra jobs as a result,” said Premium Credit strategy and brand director Adam Morghem, whose camp enables policyholders to pay for cover on a monthly basis.

“Premium finance is specifically designed for insurance buyers. Using the right credit to maintain important insurance policies is sensible. Looking to spread the cost of an annual policy into more manageable monthly payments works for many consumers and businesses.”

The survey also found that 5% of those who use credit to buy insurance have cancelled or amended their buildings cover while 7% have cancelled or amended their home contents insurance.