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Abbey Home Insurance warns about direct debit charges

09/03/07

Almost half of home contents insurance policies are more expensive if the homeowner chooses to pay by direct debit, a home insurance provider has claimed.
 
According to figures from home insurance company Abbey Home Insurance, there are 215 home contents insurance policies available in the UK, of which 94 charge extra for monthly payments by direct debit.
 
Moreover, the home insurance company has warned out that additional costs could accumulate rapidly, since the average charging policy demands an extra fee of 19.16 per cent.
 
And some home insurance policies apparently demand up to 34.9 per cent for direct debit transactions.
 
Commenting on the results, Prasad Shastri, head of insurance marketing at Abbey, argued that homeowner's insurance customers should not be penalised for choosing to pay monthly.
 
"There is no point using a competitively-priced insurer if they then go and add to your annual bill using back-door methods," he said.
 
"Customers should carefully look to avoid insurers that levy an additional fee for paying premiums over the course of the year."
 
In other home insurance news, home insurance customers were given tips earlier this week on how best to make a flood damage claim.
 
Among tips offered by home insurance provider Lloyds TSB Insurance, it was suggested that homeowners should avoid turning on gas and electricity supplies after flooding until the property has been checked over by a professional tradesman.
 
Moreover, the company has said that flood victims should contact their home insurance provider as soon as possible to ensure a speedy resolution to the claims process.
 
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