How does premium finance work?
Premium finance allows you to spread the cost of your Prima car insurance across monthly payments.
Prima is a credit broker, not a finance provider. So we partner with separate premium finance providers.
Essentially, the premium finance provider pays the cost of your insurance upfront. Then you pay them back in monthly instalments with interest. Your credit agreement outlines the terms of this arrangement, such as the interest rate and your repayment schedule.
Lots of drivers like to spread their insurance cost. But because there’s interest, it’s worth noting that premium finance does work out more expensive overall than paying for your insurance upfront yourself.
Abound or Close Brothers provide your finance
We’re currently switching our premium finance provider from Close Brothers to Abound. So depending on when you took out your Prima policy, it’ll either be Close Brothers or Abound that provides your finance and collects your payments.
If you’re not sure which company provides your finance, you can find out by checking:
- Who emailed you when you first took out your Prima policy
- Whose name appears on your bank statement
We get a commission for arranging your finance
With both providers, Prima gets a commission for introducing you and arranging your finance. The commission is a fixed percentage of the loan at any given time. Rest assured that this commission is already included in your monthly payments. So while it does impact what you pay overall, you won’t be hit with any extra bills.
If you’d like to check exactly how much this commission is, contact us.
