Car insurance: drivers paying monthly ‘face interest charges of more than 30%’

‘Poverty premium’ penalises drivers who cannot pay one-off lump sum, say campaigners

Car owners who pay for their insurance monthly rather than with a one-off lump sum are being charged interest of more than 30%, research has found, in what has been described by campaigners as a “poverty premium”.

Insurers give customers the choice of paying one annual premium or breaking it up and paying over the course of the year.