Having a panic over rolling insurance

Becsie

Hello All


I have a mortgage appointment for a decision in principal on Wednesday that until about 5 minutes ago I was expecting to go quite well.


I bought a home contents insurance policy in January 2015 for around £25. My debit card expired in the autumn of 2015. I received a letter in January 2016 stating that auto renewal was coming and it was double the price so I didn't want to renew. I then received a letter stating that they had not been able to collect the renewal fee as the card was no longer valid, and if this was not received they would begin to recover any lost funds. It totally slipped my mind to give them a call, and a week later I received a more friendly worded letter stating that I had not been renewed as they hadn't heard from me and they hoped I would come back to them again for business etc.


I have quickly tried to register on Experian not realising that it will take a good five days to get access to the report which is too late.


Does anyone honestly think that this could possibly be on my credit file as a none payment? No proceedings whatsoever were taken against me, and I did get that friendly letter stating they acknowledged I wouldn't be renewing.


Panicking over nothing?
Thank you
Rebecca

benroles

Yes... insurance isn't a credit product. You simply pay up front (or pay pro-rata each month) and consume the 'product'. Whilst they'd love to take the money and auto-renew you again, if you say no (or they cannot take the money) you just don't have insurance again for the follow-on period.

No need to panic then.

Even it this hadn't have happened and you'd decided to renew with them anyway, it wouldn't be on your report.

Credit is quite simply that - where there is the potential to consume BEFORE you pay, so:

- Cards
- Loans
- Utility (Gas / Electric) - you use and then pay after meter read
- Phones (mobile etc.) - even if you pay for your contract 'up front', you have the potential to over-spend on extra minutes etc. which would then be settled post-bill

B.

Becsie

Thank you so much for your reply. That has really put my mind at ease.