Car Insurance whilst on a DMP

Ellieseleven

I have just completed the debt remedy forms with the CCCS to go onto a DMP and realise that I can't now take out any new credit but my car insurance is coming up for renewal in the next couple of weeks. Does the fact that I will now be on a DMP mean that I can't pay my car insurance in installments?

I've had a letter from my current provider but the payments are going to rise by £15 per month:eek:

Thank you
Ellie

Sorry, I've got lots of questions whilst I get to grips with all of this:T

jonathon

im on a dmp with payplan and i pay my car insurance monthly and its on my soa as such

Marisco

Hi Ellie, I should imagine it would form part of your SOA as monthly outgoings, the same as gas, electric etc. You would then pay it every month to the ins company, I wouldn't have thought a DMP would bar you from paying monthly, as a DMP helps you to see what is left after normal monthly outgoings, then what is left is divided between the creditors. I might be wrong mind, and stand to be corrected;) But that is how I worked our DMP, paid all the bills and then paid a reduced payment to creditors.

Ellieseleven

Thanks for your answers, yes I have included a monthly figure on my SOA but the insurance is up for renewal... can I still shop around for a better quote?

Numpty_Monkey

Of course you can shop around
http://www.moneysavingexpert.com/insurance/
you can then either update your SOA or save the extra few £'s for an emergancy fund or to make a F&F at a later date for a smaller debt;)

Ellieseleven

Thanks Numpty Monkey, I wasn't sure whether I would be refused because of my credit rating now being shot to pieces.

jcorbygas

I know what your query is about and it has occurred to me too, as if you go with a new company they are very likely to credit check you as you are taking out a credit agreement with them - I have been lucky with my renewal for last week as the company is still the most competitive but because my basic bank account doesnt do direct debits I have to pay it as a recurring payment from my debit card.
I think you will have to ask CCCS as they do say not to take on any more credit or maybe you can look around for other quotes and when you have found a cheaper one ring your existing insurer and see if they will match it or come near the price and then you dont have the problem.
You will be OK for next year as you can budget and pay it as a one off payment.

Jackie