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Aviva Motor Insurance Monthly Instalment Interest Charge

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  • 16-08-2013 1:23pm
    #1
    janeinsur1
    Registered Users Posts: 1 ✭


    hi all


    I had a look at the Aviva insurance site for a motor quote today for comp insurance. Its quoting me e 428 for what they call full pay and 569.71 for part pay. Full pay seems to pay in full by credit card and part pay seems to be paying my instalments. It then quotes 609 for paying my instalments.


    So paying by credit card up full you get charged 428 but if you pay by instalments you are charged 609 (for same car driver etc). This is a difference of 181 euro which would be 42% interest and not a an APR which would be much much more higher.

    I note that they do say that if you pay by instalments they will increase the premium and then charge you interest on top of that, To me that would seem like they are hiding interest which i dont think is fair on a consumer and especially in our economy where cash is tight. I have never seen any other insurer do anything like this to their Irish customers.

    I even had a look at the interest calculation using the 569.71 figure as an apr of 22.5% - I think this is wrong as they ask for a deposit of 114 so i think the calculation is underestimated in terms of apr.

    We have seen Aviva transfer jobs from Ireland to the UK and then from Ireland to I India and transfer their deposits from Irish banks to UK banks, so i feel this is just another attack on the irish economy by the British insurer.

    Does anyone if this sounds correct?


    Thank u


Comments

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    #2
    peteb2
    Registered Users Posts: 1,813 ✭✭✭peteb2


    You are correct that they are charging a cheaper premium if you pay in one. Aviva have decided that payment type is a rating factor when it comes to underwriting the price. I expect they feel there is some moral hazard and they not get paid in full. They're within their rights to do this unfortunately.


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