Insurance customers are becoming more accepting of using credit to buy cover, research from Premium Credit shows.
Around a quarter (24%) of customers said that over the past year they have become happier about using credit to fund cover, slightly higher than last year’s figure of 23%.
However, the study found accessing credit such as credit cards, mortgages and loans was becoming more difficult for some.
Around one in seven (14%) of adults found it harder to borrow since the start of the cost-of-living crisis, and 17% had been rejected for cards.
Premium Credit’s data showed that 70% of adults used some form of credit to pay for one or more types of cover, including credit cards and loans, as well as premium finance and finance from insurers.
The numbers of people using some form of credit to pay for one or more insurance policy was 66% in March 2022 and 69% in October 2021.
More than a third (35%) of those who were more accepting of using credit said it was because they have become more financially savvy, while 33% said more credit was available.
A fifth (20%) said they are better off and more comfortable using credit.
More than two out of five (41%) of those questioned said their level of savings had dropped since the cost-of-living crisis started, while 12% had no savings.
Around 17% said their level of savings dropped dramatically, while just one in five (20%) had increased their amount of savings over the period.
Adam Morghem, strategy, marketing and communications director at Premium Credit, said: “Using some form of credit to pay for one or more insurance policy is widely accepted although many people may be unaware they are using credit when they finance from their insurer.
“While customers are becoming confident about using credit to buy insurance there is a growing issue that getting credit and credit cards in particular is becoming more difficult.
“Premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow.
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments.”
