New car insurance warning as some people paying monthly fork out an extra £300 a year
dailyrecord.co.ukCar insurance customers face a growing divide between those paying monthly and annually, according to Which? The consumer group said those customers who can often least afford to pay "over the odds" may end up paying around an extra £300 on average.Data shared with Which?
by comparison website GoCompare in January indicated that, as of November 2022, nearly half (46%) of car insurance customers opted to pay in monthly instalments.
In November 2019, the average difference was £217, according to the research, however, by November 2022, the typical difference had increased to £302.Monthly payers faced paying just under £757.60 typically compared to £455.49 for annual payers.
While not every ‘pay monthly’ customer is paying more, the more severe price increases could be falling on the drivers least able to afford them, the consumer group said.According to GoCompare, younger customers often opt for monthly payments.
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