The ThisIsMoney Blog has blown the whistle on Kwik-Fit’s rip off car insurance deal for those who choose to pay it off in instalments:
I notice that if I choose to pay in instalments Kwik-Fit will charge me interest at 32.3% APR.
Crikey! 32.3% APR! As the article rightly points out, you could get a loan for cheaper to pay it off in one, or use a 0% credit card (if you can find one).
How do they get away with this sort of deal? Probably because they are seen as a “trusted” brand by many of their customers, who still think they’re getting a good deal.
By the way, this sort of interest rate on paying for your insurance in instalments is nothing new, as we mentioned back in March. The moral of this story? Check that there’s no nasty surprises with your insurer before signing on the dotted line, and shop around for better deals.