• Sharp rise in number of consumers willing to use credit, Premium Credit’s Insurance Index shows
• Increasing financial confidence and more credit being available is driving the trend

Insurance customers increasingly are accepting the use of credit to pay for cover as they look for ways to improve budgeting and make their money work harder, new research* from the UK’s leading premium finance company, Premium Credit, shows.

Premium Credit’s Insurance Index found nearly a third (30%) of consumers say they have become more willing to use credit for insurance payments in the past year confirming a growing trend. Last year** 22% of consumers were more willing to use credit for insurance while in 2023*** it was 24%.

The move towards using credit to pay for insurance is being driven by more credit being available and consumers becoming more financially confident. Around 35% say availability of credit is making it easier while 33% say they are more financially savvy.

Around 26% say they have become more accepting of using credit as it means they are financially better off while 26% expect interest rates to be cut further.

However Premium Credit’s study found that being accepted for credit is an issue for some – around one in five (19%) say they have found it harder to secure credit since the beginning of the cost of living crisis while one in seven (15%) have been turned down for a credit card over that period.

Premium Credit research shows more consumers are working harder to find the best price and quality of insurance cover – this year 70% say they are putting more time into shopping around compared with 62% last year and 53% in 2023.

Jon Howells, Chief Commercial Officer, at Premium Credit said: “Credit is an important financial tool to help consumers manage insurance payments and our research underlines that they increasingly are more willing to use credit to manage their insurance payments.

“Premium finance can help consumers avoid the pain of an annual lump sum. It can also be a good alternative to other forms of credit like credit cards or bank overdrafts.”

Notes:

(*) Independent consumer research conducted by Viewsbank among a nationally representative sample of 827 aged 18-plus between March 7th and March 10th 2025
(**) Independent consumer research conducted by Viewsbank among a nationally representative sample of 1,122 aged 18-plus between March 15th and March 18th 2024
(***) Independent consumer research conducted by Viewsbank among a nationally representative sample of 1,106 aged 18-plus between March 10th and 12th 2023