Insurer’s bill bonanza

INSURANCE firm Esure pocketed £21.8m from struggling families who paid their premiums monthly in the first half of 2017.

Customers who choose to make regular payments rather than paying up front are charged 11.6pc interest, meaning they pay more for the same cover.

Esure’s earnings for this socalled ‘instalment income’ hit £21.8m in the period, up 22.5pc on the first six months of last year.

Campaigners have criticised the practice, which they believe penalises the poorest most severely. The company wrote £531.3m of vehicle premiums during the half-year, up 27.4pc, and the number of drivers it covers rose by 16.4pc to 1.7m.

Home insurance premiums fell 6pc to £42m, while customer numbers dropped 11pc to 517,000 because the firm hiked prices to guard against rising inflation more than rivals.

Esure’s overall profits rose 44.6pc to £45.1m. Its stock fell 4.2pc, or 12.6p, to 289.5p.