Insurers charging rates similar to credit cards for monthly cover – Which?

Some motorists could be charged nearly 40% APR (annual percentage rate) when paying for their insurance monthly, according to Which?

And some home insurers are charging nearly 35% APR on monthly payments, the consumer group said.

It added that the rates being charged by some insurers to pay for monthly cover resemble the interest applicable for credit card borrowing.

Which? asked 39 car insurers and 34 home insurers what APRs were being applied to monthly payments.