Consumer Intelligence suggest the fall was ’driven by increasing competition and regulatory pressure’
Reductions in the fees to pay home and car insurance in instalments have seen policyholders save over £100m in the past year.
Data published by Consumer Intelligence on 4 April 2025 showed that the average total instalment cost on top of paying in a lump sum has fallen to 10.1% from 11.3% in the past year.
The firm suggested that the fall was “driven by increasing competition and regulatory pressure”.
Consumer Intelligence also reported that the number of people using instalments to pay for motor insurance has risen, up from 7.5m (25% of customers) in late 2021 to 12.6m (42% of customers) in late 2024.
In the same period, the number of people using instalments to pay for home insurance rose from 5.8m (31% of customers) to 8.62m (46% of customers).
Campaign
Consumer Intelligence published the data as it launched a campaign called “APR Awareness Month”.
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The firm said this will “correct common misconceptions around APRs and emphasise the importance of looking at the total instalment cost (TIC) instead”.
Ian Hughes, chief executive at Consumer Intelligence, said: “Focusing solely on APR can mislead consumers, particularly vulnerable customers who rely heavily on instalment payments.
“APR Awareness Month will clarify the real costs and encourage insurers to keep instalment charges transparent and fair.”
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