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What is a Pay Monthly Shortfall Insurance policy?Pay Monthly Shortfall Insurance


There are two main types of pay monthly Shortfall Insurance and it is really important that you understand the differences so that you can make real informed choices and compare levels of cover.


We must stress that as long as your policy or policies are over £150, you will have the ability to pay in monthly instalments. If you are only purchasing an Excess Insurance policy at just £17.50, you will not have the ability to pay in monthly instalments.


The first level is one that we do not offer. This is a monthly renewable. What this means is after all the insurance jargon is stripped away is that you choose to renew your policy each month and that your cover is totally reliant on your payment being made each month. This means that the moment that you stop paying you policy is null and void. 


The second level is where a standard policy is simply funded by a specialist. For example our Return to Invoice Gap Insurance for a 5 year policy is £158.00. The policy remains exactly the same. the way in which it performs remains exactly the same. Only the way in which you choose to pay for it changes.


This second level of policy is the type that we offer our policy holders and website visitors. We feel that it is a fair and more transparent level of protection.


You can elect to pay for any policy or combination of policies monthly providing that they are over £150.00. You will pay no deposit and instead pay your first payment normally 10-14 days afterwards and then the remaining 12 monthly installments on the same calendar month as on the day that you bought your policy.


This means that even though you may only be paying for your policy for 12 months your cover will continue long afterwards.

Are you charged Interest if you choose to Pay Monthly?


Yes, if you elect to pay for your policy via a pay monthly solution there will be a nominal amount of interest.


In line with our ethos of being fair, upfront and transparent we feel that this is there fairest way.


We all know that there is no such thing as free. Free does not exist and everything has a cost. Even interest free. Some one somewhere is paying and if we offered 0% interest free, we would in effect have to agree to pay a subsidy.


Based on the profit margins we work with this would have meant a price increase across the board.


We feel that this would therefore discriminate against policy holders who would prefer to pay for their policies in a lump sum. Instead when you elect to pay monthly our system will show you the total policy or combination of policies prices. it will then show you the total charge for credit which includes any administration fee then the total amount repayable if you decide to pay monthly.


For example

Shortfall Watermark

Pay Monthly at Shortfall



How do you pay over monthly instalments?


Your bank account will be debited each month. It is a simple direct debit that will take the same amount on the same date each and every month for the first 12 months.


The Funding Company Premium Credit Limited is one of the UK's largest funding companies and work with other house hold names such as Mercedes Benz and Eon to provide short term finance and flexible payment solutions.


Your first payment is taken normally 10 - 14 days after you have purchased your policy and then every calendar month. (this is normally the same date that you set your policy live). Please remember that you must be over 18 years of age and that finance is subject to status.


For example you buy a policy on the first of July.


Premium credit will write or email you so that you can confirm that it is your policy and that you understand that the payment will be over 12 months.


your first payment will be taken in or around the 10 of July.


After this first payment your normal monthly payments will then be on or around the first of each month.


Premium Credit Limited

Premium Credit are also like us members of BIBA.


Premium Credit Limited

Premium Credit House, 60 East Street,

Shortfall Watermark
Epsom, Surrey KT17 1HB

Registered in England and Wales No 2015200