Car Insurance - Good or bad?

[Deleted User]

I'm planning to pay this year's Car Insurance renewal in one chunk, instead of monthly, as I've done in the past.

Will paying it in one chunk be good, bad, or have no effect, on my Credit Rating?

matttye

Does your car insurance company report to CRA's? None of my last three insurance companies even report!

In any event, it's not likely to have a big effect either way, but you'll save a fair bit by paying it in one go.

[Deleted User]

matttye wrote: »

but you'll save a fair bit by paying it in one go.

£42-05 to be exact.

Still, better in my account than theirs, and, with the poor interest rates for savings, certainly more than I'd get, by leaving the cash in an ISA.

lvm

It won't have any affect on your credit file as you are not taking out any credit.

When paying monthly, you are receiving a loan for 12*monthly payments and pay this off monthly hence why is appears on your credit file.

[Deleted User]

So, will not taking it on monthly payments be good or bad?

In other words, has my Credit File benefited, or suffered, from the previous years of monthly payments?

matttye

lvm wrote: »

It won't have any affect on your credit file as you are not taking out any credit.

When paying monthly, you are receiving a loan for 12*monthly payments and pay this off monthly hence why is appears on your credit file.

My last two car insurance companies haven't reported even though I've paid monthly. With my current one I started paying monthly, then decided to pay it in full after a couple of months. They haven't reported anything either.

matttye

Bedsit_Bob wrote: »

So, will not taking it on monthly payments be good or bad?

In other words, has my Credit File benefited, or suffered, from the previous years of monthly payments?

Which company are you thinking of going with? Perhaps someone can confirm whether or not they report.

happy_bunny_2

I usually pay monthly and none of my recent companies have reported. Tesco and AA.

lvm

You'd need to ask if they report to a CRA before taking it out.

If previous ones have shown on your report and you've paid on time, it shows you can handle credit.

If it doesn't show, it doesn't make a different.

[Deleted User]

matttye wrote: »

Which company are you thinking of going with? Perhaps someone can confirm whether or not they report.

I'm going with Hastings.

matttye

Bedsit_Bob wrote: »

I'm going with Hastings.

I'm with Hastings ATM - they definitely don't report.

Pay in one go and save yourself some money!