Utilizing DD to spread the associated fee - could mean that your motor insurance cover prices as much as 20 per cent more. Around 83 per cent of motor insurance coverage policies cost interest for those who pay by direct debit, with 8 per cent not stating whether you will be charged till you get a quote. The average APR is 21.27 per cent but the high price is 37.12 per cent, charged by Provident, which might add £283 to the common fully comprehensive premium of pound 762.
It's possible you'll be higher off paying on your car insurance in a lump sum or using a low-interest bank card, which you'll be able to repay at a lower charge than the one supplied by your insurer. Insurers that don't cost interest for paying by direct debit on motor insurance coverage embrace Virgin Money and Age Concern.