»

MSE News: Insurers failing to give clear information on payment options

New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: NEW MSE Coronavirus Guides

NEWSFLASH
FOREIGN OFFICE TRAVEL ADVICE * FURLOUGH UPDATE * MORTGAGE LENDING

MSE News: Insurers failing to give clear information on payment options

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
14 replies 1.7K views
Former_MSE_PalomaFormer_MSE_Paloma News reporter
531 posts
I've been Money Tipped! Newshound!
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
People buying home and car insurance online are not given clear information about payment options, the FCA says ...
Read the full story:

Insurers failing to give clear information on payment options

OfficialStamp.gif


Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
«1

Replies

  • gadgetmindgadgetmind Forumite
    11.1K posts
    Ninth Anniversary Combo Breaker
    ✭✭✭✭✭
    So consumers are now incapable of multiply by 12 and doing a subtract? Sheesh!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    gadgetmind wrote: »
    So consumers are now incapable of multiply by 12 and doing a subtract? Sheesh!
    No.

    But most are not capable of turning that simplistic scrap of arithmetic into an APR.

    I don't quite understand the mindset of the financial anoraks on here who always seem to be against the provision of further information for consumers. Banks and credit-card providers have been giving this kind of information for years so what's so special about the insurance companies that they need not?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • gadgetmindgadgetmind Forumite
    11.1K posts
    Ninth Anniversary Combo Breaker
    ✭✭✭✭✭
    One more divide and the APR is staring you in the face but I'd expect many people just want to know how much extra it will cost them to pay by instalments.

    Don't get me wrong, I can't see why insurers shouldn't give this figure, but equally well it's not something to get excited about.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    I regret that it is not as simple as you make out. Even with a spreadsheet, finding an APR is a recursive calculation. You could use APR tables but how many people have even heard of such things?

    I do, however, take your point that many people don't even understand the significance of an APR.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • CaddymanCaddyman Forumite
    341 posts
    The only thing I'm ever interested in when I renew my insurances, is to make sure I'm not being deceived into committing myself to a Continuous Payment Authority, which I firmly believe should be made illegal, and making sure I don't get deceived into ticking boxes which would involve getting junk mail.

    I guess I'm lucky, I always pay the whole year up in one go on my policies thus avoiding the ridiculous interest payments paying monthly.
  • minislimminislim Forumite
    350 posts
    Tenth Anniversary 100 Posts Combo Breaker
    ✭✭
    its only been around since 2000 when i did my first online quote.

    why has it only taken 15 years for this to be realised by everyone else?

    it was however refreshing to see the postoffice home insurance have scrapped apr on monthly payments when i was pricing up last month.

    and it was the second cheapest too!
  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    minislim wrote: »
    . . . it was however refreshing to see the postoffice home insurance have scrapped apr on monthly payments when i was pricing up last month.
    Not quite sure what that means.

    Have they scrapped charging interest on monthly payments (i.e. same annual subscription whether by monthly or annual payments) or have they just stopped declaring the APR? - the latter is exactly what the FCA is complaining about.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • chanz4chanz4 Forumite
    10.3K posts
    Tenth Anniversary 10,000 Posts Xmas Saver!
    ✭✭✭✭✭
    Can you confirm on money supermarket are they in the clear
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • rs65rs65 Forumite
    5.5K posts
    Eighth Anniversary 1,000 Posts Combo Breaker Car Insurance Carver!
    ✭✭✭✭
    I don't quite understand the mindset of the financial anoraks on here who always seem to be against the provision of further information for consumers. Banks and credit-card providers have been giving this kind of information for years so what's so special about the insurance companies that they need not?

    Most consumers don't need to know anything other than what the monthly cost will be.
  • gadgetmindgadgetmind Forumite
    11.1K posts
    Ninth Anniversary Combo Breaker
    ✭✭✭✭✭
    rs65 wrote: »
    Most consumers don't need to know anything other than what the monthly cost will be.

    Really? Their monthly cost will be less if the pay up front, so it's not that simple.

    I've run the sums for every insurance renewal (and TV license BTW) and have always decided to make a one off payment.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
This discussion has been closed.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support