car insurance questions - no credit check though

scott7saunders

Hello,

I am a new driver and have recently purchased a car after passing my practical driving test 3 weeks ago. I am 33 years old and most definitely not a boy racer however the whole "car insurance" situation is causing me some serious head aches.

The problem I have is that most of the car insurance companies generally process a credit check when they are provide monthly payment plans for people and this is proving to be a massive stumbling block. My credit rating is rubbish and even why buying the car, I had to use a sub prime lender where I am paying 39% APR....

After using some of the price comparison sites to get some quotes, the only company that I could get accepted with was with Admiral however they are charging me a fortune for car insurance and along with APR on the monthly payments.

Does anyone know any company that does not do a credit check when buying insurance and opting to pay monthly?

The price I am looking at beating is Admirals insurance which is current £2784 per year....

Any help would be gratefully appreciated.

Thanks

cleggie

It shouldnt be a problem really. I have an appalling credit history, nobody in their right mind would give me credit...but i have never had any probems getting car insurance to agree me paying monthly.

property.advert

You have a credit record shot to pieces, presumably because you failed to repay past debts but are paying 39% on a depreciating asset which seems to be such a racy number as to warrant a huge insurance premium that you also cannot pay up front but rather need additional credit to get on the road.

How long before the penny drops ?

scott7saunders

I asked for some advise on insurance etc not for your opinion on my motoring or consumption of credit...neither of which I give a !!!! about...

Has the penny dropped for you about me not being interested in your option or do you need me to expand !!

scott7saunders

cleggie wrote: »

It shouldnt be a problem really. I have an appalling credit history, nobody in their right mind would give me credit...but i have never had any probems getting car insurance to agree me paying monthly.

Thanks for the reply, can I ask which company you have gone with please ?

cleggie

I have been with elephant and i am now with ecar.
Good luck, i hope you find somewhere to insure you.

Wutang_2

scott7saunders wrote: »

Has the penny dropped for you about me not being interested in your option or do you need me to expand !!

I think you need to expand. You're statistically awful with money. Expand.

scooby75

property.advert wrote: »

You have a credit record shot to pieces, presumably because you failed to repay past debts but are paying 39% on a depreciating asset which seems to be such a racy number as to warrant a huge insurance premium that you also cannot pay up front but rather need additional credit to get on the road.

How long before the penny drops ?

Besides the fact that this is completely besides the point of the question asked and seems to me to be posted only to be rude, some people have little choice but to do what the OP has done.

keith1950

The problem I have is that most of the car insurance companies generally process a credit check when they are provide monthly payment plans for people and this is proving to be a massive stumbling block.

Hi, I think you are missing the point about these 'credit checks', there are several types of check that are only done for the purposes of checking your identity.

Where a check is reported as 'generic' check or 'identity' check or 'insurance quotation' they are not visible to other people viewing your credit files, they are only visible to you.

My credit rating is rubbish and even why buying the car, I had to use a sub prime lender where I am paying 39% APR....

Your problems will be down to your poor credit rating and these invisible 'insurance searches' will not make the situation any worse.
I think every insurer providing monthly payments will do a check and if your file is as bad as you suggest you will have problems.

j2009

Are you sure your credit history is affecting the interest rate that the insurer is charging? Generally speaking insurers charge high interest rates to all customers for credit so it may be that your are getting the same rate as everyone else!

How high is the credit limit on your credit card or might it be possible to get a new one with a 3k limit? You will often find the interest charged by insurers is higher than the rate you would pay if you put it in your credit card and pay it off over the next 12 months.

The other thing to consider is that some insurers may allow you to overpay the monthly premiums which would reduce the amount of interest you pay. So accepting the high interest rate be a means to and end if you can overpay or transfer to a different credit mechanism in the future.

I know you don't want advice on how to manage credit but it would be remiss of me not to highlight that doing this requires a lot of financial discipline and by your own admission your credit history is chequered so you need to think carefully - if you don't pay it all off by renewal time you will have even bigger problems trying to pay it off and afford next year's insurance.

Oh and one last thing after typing all this. Direct line are advertising 0% APR at the moment so may be worth trying them.

mumof3kids

my husband was in pretty much the same position and i tried an online search with moneysupermarket dot com , auto trader and confused dot com and the usual price comparison websites where they search a few different companies altogether, this brought up the cheapest quote and was a lot quicker than doing loads of individual searches.
also try quinn insurance, based in ireland but has been the cheapest for us for a few years!
good luck, its criminal how much they charge for new drivers!