Premium Credit’s research shows 24 per cent of those who have taken on more credit to pay for insurance over the past 12 months have struggled to afford policies in the past year.
Its Insurance Index study, which monitors insurance buying and how it is financed, shows 10 per cent of people who have used credit to buy their insurance over the past 12 months have taken on extra jobs as a result, while nine per cent have sold their cars. That is three times more than respondents who sold their cars in Premium Credit’s 2020 surveying.
Cancelling and amending policies
Around six per cent say they have had to have pets put down because they cannot afford veterinary treatment, four per cent have driven their vehicle without insurance, and two per cent turned to crime to raise cash to fund insurance.
Others have cancelled or amended policies – around one in 20 (five per cent) of those who use credit to buy cover have cancelled or amended buildings insurance because they can’t afford the total cost of their insurance, and seven per cent have cancelled or amended home contents insurance.
Adam Morghem, Premium Credit’s Strategy & Brand Director, said: “It is concerning that people are struggling to afford important insurance and having to resort to selling their cars and taking on extra jobs as a result.”
ITIJ assessed the many factors affecting the rise in health insurance premiums, including increasing treatment costs, higher incidence of chronic conditions, evolving and expanding regulatory requirements, and the accelerated use of insurtech.