Car insurance curveball...

davidgmmafan

Got a letter today from some random company saying my application for a loan had been turned down. As I hadn't applied for a loan I first thought it was a scam.

Further down it refers to some convoluted trading name of my car insurance company. As it refers to information held by equifax I guess I should start there.

I have a couple of concerns. Firstly I'm assuming its to do with bankruptcy, yet this is strange logic as surely that means I am now in a better position to pay bills than before? Also on this subject I have seen many threads about car insurance and bankruptcy but they all seem to focus on the question of whether or not it will affect the premium. Haven't seen anyone who was declined purely because of bankrupcty.

This leads me to my other concern, if I can't pay monthly it could put me in a difficult spot. I need the car to get to work, and the only way of me having the full amount to pay for the year is buy downgrading the cover and cancelling other priority payments for this month. Being an undischarged bankrupt kinda suggests I don't have loads of month sloshing around.

In case you are wondering I have an NT only IPA so I can't even look for temporary help there. Anybody know of any bankrupt friendly insurers as I imagine I'm going to encounter the same problem with most.

wildheart83

Co-op insurance seems to be BR friendly and is competitve for a lot. Try giving them a ring rather than using websites as it allows you to ask any questions there and then

davidgmmafan

Thanks I'll give them a try, afterall they were good enough to give me a bank account.

It it a little ironic I think that in bankruptcy you are given enough to live on from payday to payday yet insurance companies helpfully decide you have to pay in full. I realize its a business decision, but it doesn't seem based in reality to me.

I probably need to have a look at my credit file anyway to see if there are any defaults still being registered as my understanding is they should all ideally be showing the date I went bankrupt, or at least the discharge date when I am discharged.

wildheart83

To be honest with you I'd save the £6 for now because your credit files will be a mess at the moment. There was a thread somewhere recently about which car insurance companies are BR friendly, I'll see if I can find it. Also be careful about your insurance being over £500 as you'll have to tell them you're BR, but it's a good idea to do it anyway.
Good luck

alastairq

As wildheart says, Co-op insurance are good, and probably will accept instalments.

[I, too, cannot see the issues surrounding BR..after all, if an instalment is missed, the cover is cancelled [with only obligatory 3rd party liability in force if a claim is subsequently made....statutory duty of insurer, etc.]]

My latest year's cover a bit cheaper than last years...

freddy911

Can you not just carry on with your original insurance? if you take out a new policy with a new provider then they will usually credit search you, if you just continue with your renewal with original provider they wont bother. Thats what I just did.

Ineedaname

That depends once again whether there is a BR clause in the policy!

IF

This is the lastest thread that may help.

Car insurance thread - Click here

Best wishes
If...x

davidgmmafan

freddy911 wrote: »

Can you not just carry on with your original insurance? if you take out a new policy with a new provider then they will usually credit search you, if you just continue with your renewal with original provider they wont bother. Thats what I just did.

This is exactly what I did, but it is renewal time now. My insurance is due in March and I went br in May. I got a quote through the post from my current provider giving the rate for the year and the extra if I wanted to pay monthly. Then I got a letter from whomever they use to provide the finance saying they had declined my application.

For the past couple of days there's one point I have been mulling over. I haven't actually applied, yet, with them so why were they doing a credit search?

Surely the process is to send out the renewal then I contact them if I want to go ahead?

alastairq

Surely the process is to send out the renewal then I contact them if I want to go ahead?

As a result of good{?} business practices...and the onset of continuous insurance [ and the liabilities the insurers now take on board as a result]....some [most?} insurers now do the exact opposite.

Now...they invite renewal, outlining the terms, changes, etc...then if the policyholder wishes to continue uninterrupted with the cover, nothing is done by that policyholder.

Any changes of cover, or indeed, if the PH no longer wishes to renew, then the PH notifies the insurer.


This policy of 'utilising customer inertia' is not confined to insurance...the AA has such a policy, once they've lured you in with a massive discount for breakdown cover...the next year, they automatically take the new 'premium' from your account..and there wont be any kind of discount applied, believe me!

One has to be quick on the ball to avoid that scam.


Try Co-op insurance.

davidgmmafan

I understand the inertia thing, many companies rely on it, but the does this also apply for a credit search. Surely you need to consent to this in advance?

Anyway its not all bad as with a bit of jiggling I'll be able to pay in full which is better all round.