'Free' credit for house insurance - same as cash price

Living_proof

Last year I had house insurance through Kwik Fit and Aegas and I paid it outright as I don't like paying interest when I have the money available.

This year the renewal has come in and it's offering me interest free credit by paying monthly direct debit, and the price is the same as paying cash. I object to this as there should be a deduction for cash payers or they end up funding the interest-free buyers.

Has anyone else come across this please? I have a lodger and therefore have to have specialist insurance, so can't just shop around in the normal way.

Quentin

See if a local broker (not Swinton) can get you a better deal. Otherwise pay by instalments and use the interest you make to buy a daily mail or a small mars bar at the end of the year.

paddyandstumpy

More and more brokers are offering interest free D/D. There was an article recently saying some brokers were charging up to 50% interest, it was bad press and I know KFIS have been pegged in the past with things like this.

As a side note, a lodger isn't too unusual nowadays, a lot of "off the shelf" insurers wouldn't bat an eyelid at that.

Living_proof

paddyandstumpy wrote: »

As a side note, a lodger isn't too unusual nowadays, a lot of "off the shelf" insurers wouldn't bat an eyelid at that.

That's interesting to know, thank you. It's a few years since I first enquired. Ironic really as my lodger has been a security guard for the past five years so has been heavily vetted in the past, but the terms of insurance are that they would only pay out if the house was physically broken into. So if a midget gets through an open window in the summer, no insurance.

dacouch

Most Insurers find that customers paying via monthly instalments are far more likely to renew their policy than someone who pays via one payments.

The chances are, Axa are using the profit from the extra customers who renew due to paying via monthly instalments to finance the interest free customers and thus ensure even more customers renew.

A lot of people see interest free instalments as a major policy benefit