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A news report reveals that car insurers are charging nearly 30% more for customers who choose to pay their premiums monthly instead of annually. This practice means policyholders pay an average of £55 extra each year. The study also found that those who opt to pay monthly are more likely to have lower credit scores, leading to higher insurance costs.
Why It Matters
The practice of charging extra for monthly payments highlights a potential financial burden on customers who may already be struggling with credit issues. This policy disproportionately affects those with lower credit scores, potentially creating a cycle of higher insurance costs. Understanding this trend can help consumers make informed decisions about their payment options and financial planning.
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