Homeowners looking to spread the cost of home insurance may wish to pay by monthly instalments, but research by moneysupermarket.com reveals there can be extra costs involved, and shows how these can vary between providers.
Analysis by the comparison site found consumers who want to pay their annual home insurance premium in monthly instalments may have to pay extra for the privilege. The research found that on average homeowners could expect to pay an additional 11.89% on top of the cost of the original premium.
However, by shopping around for the best deal, the extra cost could be reduced to 5.36% and in some cases, 0%.
Pete Harrison, insurance expert at moneysupermarket.com, said: "Paying for home insurance on a monthly basis is a great way to help manage the household budget - ensuring the cost is spread out over the year, rather than taking the hit of a one-off payment.
“Homeowners need to be aware, however, that choosing to manage their finances in this way can come with an additional price tag. While not all providers charge an APR for those wishing to pay by monthly instalments, it's essential to search the whole market to see who does charge, and what percentage they ask for, before comparing this against the rates from those who don't, to find the most reasonably priced deal."
