Thursday 8th March 2007
Homeowners in the UK are being warned of extra fees that may be incurred when paying for home insurance by direct debit.
According to Abbey, 44 per cent of home insurance providers charge customers an additional sum if they choose to use the automatic payment system, with the average levy found to be £31.
Some 9.3 million people currently use this method of providing cover for their property, although many may not be aware of the extra costs involved, the high street lender warned.
"There is no point using a competitively-priced insurer if they then go and add to your annual bill using back-door methods," remarked Prasad Shastri, Abbeys head of insurance marketing.
"Using direct debit to buy home insurance is not a service you should be paying for."
Those looking to switch home insurance providers are also being advised to consider companies which are given a five-star rating by independent research group Defaqto.
Abbey also offers a range of personal finance products including current accounts and credit cards.
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