Research from Premium Credit has found that 49% of customers use credit to pay for their home insurance, up from 40% a year ago. It also found that 48% of customers pay for motor insurance with credit compared with 40% last year.

Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed twice yearly, saw increases in the use of credit for all categories of insurance it covers including pet, health, travel, critical illness and specialist insurance.

Adam Morghem, strategy, marketing and communications director at Premium Credit, said: “There has been a sharp rise in the number of people turning to credit to pay for one or more insurance policies as the cost of living pressures continue to tighten budgets.

“The increases have been particularly notable in car and home insurance but the rises are across the board underlining not only the importance of credit in the insurance market but also the need to find the most efficient payment options available.”

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