Premium finance costs ease ahead of FCA report
The cost of home and motor premium finance has fallen in the past six months, according to research by Pearson Ham.
The specialist pricing consultancy calculated the typical motor insurance finance cost dropped back to just over 10% on average in April 2025.
The charge for paying in monthly instalments was down by 0.6 percentage points compared with six months ago and roughly one percentage point lower than April 2024.
The analysis showed premium finance interest rates in the motor sector now range from 1.7% to 20.1%.
Within this banding, almost all car insurers (around 95%) charge between 5% and 15%.
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