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.
Council tax rises would have hit the poorest
The coalition government has today stepped back from a potential revaluation of council tax bands because of concern that any increase would see the poorest in society hit hardest. This is a sensible approach from the coalition authorities who have been accused of milking the poor to save the rich in light of recent austerity measures announced and set to be introduced in the short to medium term....Read More
Critical illness insurance 'is better financially' than life insurance
Critical illness cover represents a better financial solution than life insurance policies, it has been claimed. According to Dr Marius Bernard, the South African surgeon, a critical illness policy, which provides a lump sum payment in the event of your becoming seriously ill, is more practical given advances in medicine.Moreover, with life expectancy having increased, coupled with doctors' abilit...Read More
Have you reviewed your financial situation since the turn of the year?
While there have been signs that the UK economy may be stabilising in the short term, many people are still burying their head in the sand with regards to their own financial affairs and hoping everything will "come right" in the end. However, even if the UK economy was to recover in the short to medium term there will still be a significant lag in the employment market with unemployment set to ri...Read More
How many different shaped economic cycles are there!
Over the last few months we have seen a number of suggestions regarding how the UK economy will perform in the short, medium and longer term with suggestions such as a V shaped economic cycle, a W shaped icon and even an Adidas tick shaped cycle. So how many different types of economic cycle are there and what exactly is the UK economy going through?
The truth is that whatever the e...
Have you considered pet insurance for your four-legged friend?
The UK has long been renowned as a pet loving nation and while pet insurance has increased in popularity over the years, there are still a significant number of pet owners who have not even considered let alone taken out pet insurance. Anybody who has taken their pet to the vet over the last few years would have seen a substantial increase in general veterinary care costs but what about specific o...Read More