Insurance customers increase borrowing to ‘dodge’ vital cover

According to Premium Credit, insurance customers are increasing the amount they borrow so they can continue to afford cover during the pandemic

Insurance customers in the UK are continuing to borrow more in order to avoid vital cover, according to finance company Premium Credit.

The group’s survey of insurance customers revealed the rising financial cost of living during the pandemic is the primary motivator for consumers’ desire to borrow.

Some 16% of people polled by Premium Credit have borrowed more to help pay for their insurance cover, compared to 6% who have taken on less credit or the same amount.

Around 19% of those who have borrowed more in 2021 to help pay for their insurance say it is because their total insurance premiums have increased, while 21% say credit is so cheap it makes more sense to borrow money to fund insurance.

Adam Morghem, Premium Credit’s strategy and brand director said: “Premium finance is specifically designed for insurance buyers. Using the right credit to maintain important insurance policies is sensible. Looking to spread the cost of an annual policy into more manageable monthly payments works for many consumers and businesses.”

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