CCa 1974 for house insurance?

[loopinlouie]

Is it quite common for house insurance companies to get you to sign credit agreements to pay for 12 months house insurance in 12 monthly installments.

 

I rang up was told quote for house etc.....and was good offer and accepted it. Got the credit agreement today and suprised to see interest rate of over 20%.

 

Just suprised this rate of interest, it wasnt even explained to me that pay a fee or interest, just told how much a month.

 

Thinking about ringing them up and seeing if cheaper to pay in lump sum as this wasnt offered to me.

 

Anyone else signed to cca agreement for house insurance, I have no problems with the policy just feel uneasy with this agreement it even goes down to bounced dd for whatever reason twenty pound charge etc.....late payment 15.00. xx

[dx100uk]

typically they dont charge interest and its not normally financed through the ins co, but an outside finance company

 

dx

[unclebulgaria67]

 

For personal Insurances e.g. Home and Car, if you pay monthly most Insurers will charge interest, but the apr's vary quite a lot. This is a way for the Insurers to earn additional revenue and also reflects that they will not have the annual premium paid up front to use to fund payment of claims

 

When the Insurers provide the quote they should confirm that the monthly instalments do include interest and what the overall amount payable is. You can then make the choice to pay annually to avoid the interest. Some Insurers offer a discount for paying annually.

 

If you of a certain age, Age Concern who use Fortis, don't charge any interest for paying monthly.

[loopinlouie]

Thanks for comments, the letter doesnt give total but the cca lists interest rate and total charged as twenty pound odd, as the interest is twenty odd percent and premium nearly twenty two pounds a month x 12 doesnt make sence.

 

Will ring them to clarify what I am paying and probably try and prepare for next year to save money.

[dx100uk]

try swift they do not

 

dx