Can't get car insurance because of bad credit!!...since when??

stressedmummyof2

I am 33 and have been driving for 10 years. I have bad credit but have done since i was 18 years old. I normally pay my car insurance by monthly installments and have never had a problem getting an insurance company to accept me.
I need my car to get me to work as i work about 26 miles from home and work nights so public transport would not be as easy.
I went to renew my insurance today as it runs out on the 6th, only to be told by 1 insurer that sorry they cannot let me take the montly installments option as i have bad credit!!..... So i try another one and again the same thing. I also tried the insurer i was with just over a year ago and again the same response.
Since when as this happened?? i am fuming as bad credit should not affect this as if you can't pay then they stop your insurance anyway.
I am really worried now as i don't have the money to pay the full amount of insurance that they all ask for and if can't drive i will lose my job
Why have they started doing this?
Someone please advise me.
Thanks

jonnyd281

When you pay for insurance monthly, you are taking out a credit agreement. The poliy is after all an annual policy not a monthly one.

Lovelyjoolz

Have you spoken with your current insurer? Most companies have their policies on auto-renew nowadays, so they might be happy to continue insuring you. What does it say on your renewal notice? Does it say that the policy will automatically renew?

wannabehermit

Go on the comparison sites.

Although not sure why you're having issues as I had a DRO a couple of years ago so have a very bad credit history and I have no problems paying my insurance monthly, for car or home. My car insurance last year was paid monthly and I'm just about to start up a new policy when my current one comes to an end, and DD set up adn everything. I change insurer each year as well due to cost and have never had a problem with paying monthly.

InsideInsurance

Getting credit to pay monthly is a different matter to not being able to get insurance.

Bad credit history can increase premiums because of the perceived fraud risk but not all insurers are doing this yet.

It somewhat goes without saying that having bad credit history would impact your ability to get credit. I suspect if you look at insurers that self finance the credit rather than using an external party that they are going to be more lenient on bad credit history as traditionally this often wasnt even looked at. Now of cause we are post credit crunch so rates of defaulting is spiraling.

forgotmyname

I had credit issues for a while and thought it wise not to change company as the direct debits were setup and renewal came automatically, I never had any issues.

Even though my credit rating must have been zero.

As soon as my situation changed i renewed my insurance elsewhere and paid in full before sorting out my finances.

Never again as they say. Bis lesson learnt. Dont have credit...

dunstonh

Since when as this happened?? i am fuming as bad credit should not affect this as if you can't pay then they stop your insurance anyway.

For the last 20 or 30 years it has been payable under a credit agreement. It's just that systems didnt give as much information as they do nowadays and the administration has been tightened up as it was full of loopholes until recently.

Car insurance is not pay as you go. it is an annual contract that requires you to pay up front. If you cant pay up front then most insurers offer a loan facility that allows monthly payments.

property.advert

Direct Line are offering no interest instalments at the moment I believe, or it could be Churchill !