Direct Debit insurance 'con'
The average charge each year levied against Britons choosing to pay for home contents insurance via Direct Debit is £31, a new survey shows.Abbey Home Insurance estimates that British households are paying a total of £290 million per year simply for the convenience of paying their home contents insurance premiums by Direct Debit.An estimated 9.3 million people pay for home insurance by Direct Debit and many are not aware that they are often charged for doing so, with 44 per cent of the 215 home contents policies on the market levying a fee for Direct Debit customers.Average APR on charges for payment by Direct Debit is 19.16 per cent per home insurance policy, with the highest rate charged set at 34.9 per cent. This means that, with the average annual premium for contents insurance at £160 a year, customers are paying an average of £31 a year extra for Direct Debit transactions.Prasad Shastri, Abbey head of insurance marketing, said: "Using Direct Debit to buy home insurance is not a service you should be paying for. There is no point using a competitively priced insurer if they then go and add to your annual bill using back-door methods."A recent study by financial website MoneyExpert discovered that car insurance customers pay as much as £182 extra in fees when they opt to pay their premiums monthly by Direct Debit.Consumers are advised to check that they have the appropriate level of home contents cover and are not being charged high additional amounts to pay their premiums by Direct Debit in order to ensure they have the best rate for the level of cover they require.
Thug behaviour hits business costs
Yob behaviour cost UK businesses an average of £5,000 in 2006, more than double the costs of the previous year, according to research by Royal and SunAlliance.A quarter of business owners feel that the introduction of 24-hour drinking has increased the problem of hooligan damage. Despite a reduction in the number of businesses affected from one-third in 2005 to one-fifth in 2006 the survey reveal...Read More
Travellers urged to study insurance cover
Britons should familiarise themselves with the terms of their travel insurance or risk serious financial consequences, it has been claimed. A new study from MoneyExpert found that 12 per cent of people do not know what travel insurance covers. This could potentially lead them to missing out on claiming or worse may result in them being underinsured in the event of a serious accident. The widesprea...Read More
Virgin Money changes terms for credit cards
In a move which will be welcomed by consumers up and down the country, Virgin Money has announced plans to introduce a whole new credit card payment system from 1 September. Currently any payments made to your credit card will go towards your cheapest debt first, which for many people is the 0% transfer deal, as opposed to purchases/payments and cash withdrawals - all of which attract a significan...Read More
UK insurer bonus rates slashed
Friends Provident has today announced a 20% reduction in with-profits payments as the insurance sector continues to feel the pain of the economic downturn around the world. While this move is no surprise and reflects the general conditions of the market it could severely handicap many who depend upon their insurance investments for their long-term financial well-being.
As an example...
Financialadvice.co.uk New Years Summary- What happened?
29/12/2014 So it’s finally arrived, the end of 2014. Again, it seems to have absolutely flown by! It feels like only yesterday we were saying goodbye to 2013, and now, in only a short time, we will be welcoming in 2015. We’ve decided to have a look back at some of the biggest financial events this year, and how they have had an effect on us all, and how they may impact on the future....Read More