Monthly insurance payments: many unaware of additional fees

These fees, often called “installment fees” or “due date fees,” are added to the premium amount for car, home, and personal risk insurance contracts when payment is made monthly or quarterly, instead of an annual settlement. They can represent up to more than 8% of the total premium amount.

The study indicates that 31% of car insurance holders and 32% of home insurance holders believe they are not subject to these fees, while 27% confirm paying them for car insurance and 22% for home insurance. Among those who pay these fees, opinions vary: 27% believe they are less than 2% of the premium, and 33% (car) and 36% (home) estimate them to be between 2% and 4%. A percentage of 4% even state that these fees represent 8% or more of their car insurance premium.

Despite these fees, monthly payment remains preferred by more than 70% of respondents. Only 8% (personal risk), 15% (car) and 17% (home) opt for an annual settlement. Over the past twelve months, 5% have reduced the frequency of their payments, while 13% have increased it. The reasons cited include spreading out expenses (35%), financial difficulties (30%), a request from the insurer (28%), and the desire to avoid installment fees (25%).

The cost of insurance is not escaping inflation: 72% of respondents believe they have noticed an increase in their car, home, and personal risk premiums over the past year. For 37% of them, this increase has been significant (more than 5%), and for 36%, slight (more than 2%).