Aviva - Affects your credit rating !

Lucky_Luciano

Hello Everyone,
I wanted to post this information as I'm astounded at what I've just learnt about my Car Insurance with Aviva.

My circumstances have changed recently and I needed to speak with a debt management charity for advice. Anyway, they had to do a credit check on me and found out that I apparently have a "Loan" with Aviva ????? News to me !

It turns out that when you take out Car Insurance, they treat it as a loan and the amount (Full Annual Cost) sits on your credit file on a reducing basis until you pay it off !

Needless to say, I am now on your website looking for a new provider that doesn't affect my financial status. So be aware people, it may not be the best for you if you have poor credit x

dunstonh

It turns out that when you take out Car Insurance, they treat it as a loan and the amount (Full Annual Cost) sits on your credit file on a reducing basis until you pay it off !

As is the case for most monthly premium car insurances for the last 20 years.

Needless to say, I am now on your website looking for a new provider that doesn't affect my financial status. So be aware people, it may not be the best for you if you have poor credit x

Best way to avoid it is to pay annually in advance. Taking a loan to pay your insurance premiums is a credit agreement.

ermine

treat it as a loan

Not only that, they charge you a lot more for monthly payment too,

It's a bit sneaky IMO as the liability is accrued month by month, but since you have to have car insurance legally they get to set the terms, which is why I've always paid mine up front with a debit card

forgotmyname

Pay for it in full and they wont need to put add anything to your credit file.

They may still do a search though. A lot do that to verify you are a real person.

rev_henry

Yes...this is not news I'm afraid. Always been the way.

learningaboutinsurance

forgotmyname wrote: »

Pay for it in full and they wont need to put add anything to your credit file.

Whilst i agree this would be the more beneficial way, not everyone has means to do it like this. I know if my Insurance was £500 or less i would pay this all in one go but when its double this me paying this without credit will be hard hence why i believe the monthly instalment is very good for me.

Norman_Castle

It turns out that when you take out Car Insurance, and pay by monthly installments, they treat it as a loan, because it is a loan, and the amount (Full Annual Cost) sits on your credit file on a reducing basis until you pay it off !

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opinions4u

Astounding that borrowing money to pay for annual premium is a credit agreement?

I'm astounded that you're astounded.