Car insurance

fiveyearplan

As you know I went BR in April. My car insurance comes out of my husband's bank account and although I have not driven my car since end of February (since I knew I was going BR and the tax ran our I didn't see the point in paying new tax) I haven't cancelled it. Now this months payment didn't go through and they have sent a letter saying that I will default etc. if I don't pay by certain date.

Can I tell them I'm bankrupt and this debt forms part of my BR? They just got lucky and received 3 months extra payments

or

Do I have to pay it?

peachyprice

Do you still have the car?

As this is a debt incurred after your BR date because you didn't cancel the policy I don't think you can add it.
If you cancel the policy now you may not have to pay this last instalment, depends whether it's paid in advance or arrears.

General_Hogwart

If you lost your liscense or sold your car and didn't need the insurance anymore can't you just cancel your insurance and that's it job done? - I assume it's the same in this situation.

Just cancel the policy and you won't have to pay it? I assume.

If you don't pay your car insurance, what will happen - you won't be insured. You don't need the insurance so just don't pay it / cancel it. I can't see it being a problem. They shouldn't have a problem with it, or need to know you are BR. Give them a ring andsee if you are able just to cancel it.

fiveyearplan

I'l have to phone them tomorrow. The other thing is, we have 2 car insurance policies with the same company. They are 2 quite separate policies but the direct debits come out on the same day and as one amount. So this letter has gone to my husband for both of us. His car insurance will be paid but I need to cancel mine.

Richard_S

Hi Fyp,

When you pay an Insurance policy by installments, they're usually a credit agreement, and if you read the policy documents you'll be able to confirm this. If that's the case, then when the policy commenced, it was in fact the same as a loan, and if the policy was dated before your Bankruptcy Order date then it should be included in your estate in bankruptcy.

It may complicate matters a little with your O.H having a policy with the same company and both being paid together, but you should be able to sort it out, providing you get to speak to somebody who's reasonably capable.

Richard

fiveyearplan

Thanks Richard, thats what I was hoping would be the case.