Car Insurance Credit Agreement

rashi_2

Hello MSEs. I'm an 18 year old student, and recently I took out insurance for my new car. This is my first time taking out insurance for anything, so I'm pretty confused.

The insurance company (Autosaint) I took out insurance with gave me a monthly fee I have to pay for nine months to be covered for the year. I am comfortable with this amount, and am able to pay it each month.

What is really confusing and scaring me is the credit agreement I received from Premier Credit through my insurance company. Apparently I have taken out a loan with them?

I understand this is a way for the insurance company to be protected. What I really want to know is that will this intermediary charge me more (monthly) than I originally agreed with the insurers? There are fees and rates stated on the credit agreement which I just do not understand. Anyone have any experiences with these policies?

Thanks for reading, any help will be greatly appreciated!

forgotmyname

The payment will be exactly what you agreed. The monthly fee is what they told you.

Perfectly normal for them to arrange the payments this way.

Only extras will be if you fail to keep up with the payments. Or change the policy in anyway mid term.

When your course ends your no longer a student £50 to change your job title. Move home thats another £50, Change cars another £50 Plus any extra premium they wish to charge you.

In the 1st year keep the changes to a minimum but you MUST keep them informed of any changes.

Going through the same thing again. But prices are worse than before. £3800 for a 15 year old KA? ouch.

rashi_2

forgotmyname - Thanks, you've put my mind to rest!

InsideInsurance

The company you have bought from is a broker and they arrange the insurance on your behalf from the insurer.

The insurer in these arrangements have to be paid in full but a lot of end customers cant afford to do this. Some brokers will therefore finance this themselves, they give you credit out of their own pocket, some and particularly smaller ones, dont want to do this so use a third party company to give you the credit instead.

The prices quoted will have been based on you paying by installments, ie by having the credit