Bankrupt & Renewing Car Insurance

Oldzskool

I have just renewed my car insurance online and the total cost of the policy was below £500.00 so I have not had to tell anyone about my bankruptcy.

I used my cashminder debit card to make the initial deposit payment and then entered my bank details to set up the monthly direct debit. All this was accepted without any hitches.

I received an email after going through all this thanking me and promising the policy documents would follow soon. There was an attachment with the email including a few of the more important documents and also a copy of the credit agreement.

The point concerning me is the section of the credit agreement that says "Our right to end the agreement". One of these terms states if I "commit an act of bankruptcy". Question is... have I broken this credit agreement by being a bankrupt already or does this only apply to going bankrupt whilst the agreement is in place? They have taken my first payment and set up the DD for me so it seems they are happy to insure me at the moment.

Hope this makes sense and all opinions appreciated.

Mouse1812

I would take that as committing an “Act of Bankruptcy” during the period of the credit agreement. I suspect the clause allows them to escape from any future insurance (claim) liability if you go bankrupt. You go bankrupt and stop paying so they stop insuring you.

Oldzskool

Thanks Mouse that's how I was interpreting it. I am assuming that, as they have accepted my payments and set up DD then they have accepted me to be insured. I've not been asked anywhere during the application if I am currently bankrupt or if I have been bankrupt previously.

I half expected my application to fail when it came to the payment as the credit check would flag my bankruptcy but it didnt.

hButterflyH

Can you share what company you used please?

lifebeginstoday

When I renewed my car insurance last year (July 12) only a month after doing the deed I rang swiftcover my Insurer at the time and still current Insurer. I informed them of the bankruptcy (my premium is in excess of £1000) and they said informed it wasn't an issue but they wouldn't insure me for House Insurance:cool:

HTH

Oldzskool

The company is Esure. I used various comparison sites and found his one to be about the cheapest and most importantly under £500. I then completed the deal by following the "buy online" link. I thought I would get transfered to a "real" person at some point but didn't and then when it came to complete the payment I was expecting to be declined but again it all went through without a hitch. I then got an email saying my documents would be in the post. Hurrah!

arcon5

Did you check all the terms and 'assumptions' when going through the process to ensure they had nothing related to bankruptcy?

Oldzskool

I was not asked at any time about whether I was or had been bankrupt. The only mention of bankruptcy was in the credit agreement that I mentioned in the very first post where it says they can terminate the agreement if I commit an act of bankruptcy. I have, however, already committed the act of bankruptcy and that's what I'm wondering... If this counts or not.

arcon5

It doesn't matter if you was 'asked'... Generally when buying policies online there is a list of 'assumption', by signing up you are saying these assumptions are correct. Also their terms may have a clause about such. It may well be the case here that their terms and conditions etc say absolutely nothing in which case that's excellent - but the point I'm making is have you checked their terms to ensure nothing is included?

Regarding the clause in the credit agreement though, I'm interpreting it in the same way as you.