Is it safer to pay insurance monthly in case insurance co goes bust?

facingthefuture

After all, if the banks can get in the bother they have - how far behind are insurance companies. Although more expensive, if I paid a years insurance and then the company were to go into admin then kaput - I am not insured. So by paying monthly, I reckon I am playing safe........................or am I being silly?:think:

Quote

You're being silly.

mattymoo

In some cases the monthly payments are a separate agreement managed by a premium credit company. Even if the insurer goes bust, they can still chase you for the premium.

mattymoo

Quote wrote: »

You're being silly.

Actually, its not a daft question. I work in the London markets and we are watching two firms very closely. This is in connection with commercial insurances but one of the firms also does retail motor business.

We fully expect at least one of them to fail this year.

Quote

That may be, but it's not really got much to do with the premise of this thread.

"Is it safer to pay insurance monthly in case insurance co goes bust?"

Safer how? What? Huh? Surely the least of your worries will be how you're paying or have paid for your insurance if your insurers go under.

And like you said, sometimes the collection of instalments is outsourced.

I stand by my silly answer, as it were.

mattymoo

Depends on your premium I 'spose. Young driver - £2k down the drain if insurer goes bust? Might get it back but will take time, has to fork out another £2k to get cover elsewhere in the meantime.

Quote

...and the likelihood of your young driver paying it off in a lump sum anyway is...?

iceburn

Is quite common Quote... Parents pay it to say on interest, or Grandmother, they get a loan, save up etc.. Or even if pay monthly, still can be alot with the deposit you need to pay and stuff. Afaird I do agree with other post it not really silly question.. Cause if he pay monthly "AND" it not been outsource, than when they go bust, the insurance is now VOID but he can stop paying the monthly payments and lost max one month. If pay upfront, lose the flexibility of that money in bank account, interest (granted not much) but most importantly upto 12 months of premiums. Which can be quite alot

To the OP your money it seem no matter how you paid (ie monthly/annually) is safe. Under the FSA scheme. As pointed out on this link

http://www.moneysupermarket.com/c/news/what-happens-if-my-insurance-firm-goes-bust/0003084/

I am sure there was a big insurance company (not including the one on that link) that went cloe to going bust, or did go bust recently to due with Sept 11th 2001 and stuff.. And now might repeat due to huge losses in the stock market crash to name just one place they lost £££$$$$.

facingthefuture

mattymoo wrote: »

Actually, its not a daft question. I work in the London markets and we are watching two firms very closely. This is in connection with commercial insurances but one of the firms also does retail motor business.

We fully expect at least one of them to fail this year.

I much appreciate the comments and this confirms my own suspicions. I am more worried about any pension repercussions this would have.

Quote

Seriously, who on earth is wandering around during the day worrying about their insurance company folding? Who is doing that??? Because if you start down that path then you might as well just stay in your house.

Don't go outside.

Think of the money you'll save.

Think how protected you'll be from harm.

No need for car insurance. No need to worry about instalments.

I appreciate the comments expressed, but this thread makes me want to stab myself in the face.

Jesus wept.

facingthefuture

Quote wrote: »

Seriously, who on earth is wandering around during the day worrying about their insurance company folding? Who is doing that??? Because if you start down that path then you might as well just stay in your house.

Don't go outside.

Think of the money you'll save.

Think how protected you'll be from harm.

No need for car insurance. No need to worry about instalments.

I appreciate the comments expressed, but this thread makes me want to stab myself in the face.

Jesus wept.

I bet all those that put their investments in the Icelandic banks were sorry they hadn't the chance to re-assess before it/they folded....and I am sure your face is just lovely and it would be such a shame to ruin it. Don't read the thread if it upsets you.:eek: You have such terrible thoughts.....