Can Admiral car insurance put a default on my credit report?

Harryc7

Hi all

I have had car insurance from Admiral for about 9 months but due to financial difficulty I had to sell my car, and I don't need the car insurance anymore, but when I called to cancel the insurance they told me that I'll have to pay a cancellation fee which I'm unable to due to my current situation. They're now sending me threatening letters about defaults, so I was just wondering if they're actually able to put a defaults on credit reports? I always thought it's only something that phone companies could do!

marliepanda

Harryc7 wrote: »

Hi all

I have had car insurance from Admiral for about 9 months but due to financial difficulty I had to sell my car, and I don't need the car insurance anymore, but when I called to cancel the insurance they told me that I'll have to pay a cancellation fee which I'm unable to due to my current situation. They're now sending me threatening letters about defaults, so I was just wondering if they're actually able to put a defaults on credit reports? I always thought it's only something that phone companies could do!

Only phone companies?

Please explain why you think only phone companies can do that?

Even I could marr your credit report, little old me, if I took you to court and won. I don't understand. (I am not a phone company)

SuperHan

Harryc7 wrote: »

Hi all

I have had car insurance from Admiral for about 9 months but due to financial difficulty I had to sell my car, and I don't need the car insurance anymore, but when I called to cancel the insurance they told me that I'll have to pay a cancellation fee which I'm unable to due to my current situation. They're now sending me threatening letters about defaults, so I was just wondering if they're actually able to put a defaults on credit reports? I always thought it's only something that phone companies could do!

Wrong board, but yes they can.


When you pay your car insurance monthly, you are essentially taking out a loan to pay the whole thing on day one and then repaying the loan.


If you don't repay the loan, they can (depending on specific terms of the financing agreement) default the loan and report to the credit agencies as appropriate.

mattyprice4004

You really need to read up on what defaults are, and who can apply them
It's not just phone companies. ANY credit provider can - and taking out insurance monthly is a credit agreement.

I'd sell something to cover the fees before they add a default - because it'll be there for 6 years if they do.

pinkshoes

Surely the admin fee is less than the remaining 3 months that you still need to pay?

unholyangel

There are 2 ways something can negatively affect your credit record.

One is if credit/finance is involved. If you are late with a repayment then they can put a default on your file (as you have defaulted on your agreement with them).

The other is where anyone (even when credit isn't involved) takes you to court, wins and you fail to satisfy the ccj within the allocated time (usually a month).

However with car insurance, I believe your insurer will try to take the money again if it fails the first time. But if the 2nd payment fails then you'll have much bigger problems than a default on your credit history as missing the 2nd payment usually leads to your policy being cancelled. Having a policy cancelled (by your insurer) means less insurers willing to quote you and higher prices (as insuring you comes at a higher risk).

Try and borrow the money if you can. If you work, perhaps ask your employer for an advance.

Harryc7

marliepanda wrote: »

Only phone companies?
Please explain why you think only phone companies can do that?

I thought if you buy something on a instalment basis, like a contract phone, and miss payment then they could put a default on your credit history.

marliepanda wrote: »

Even I could marr your credit report, little old me, if I took you to court and won. I don't understand. (I am not a phone company)

I'm aware of that, but I don't think Admiral would take me to court over £50.

Harryc7

SuperHan wrote: »

If you don't repay the loan, they can (depending on specific terms of the financing agreement) default the loan and report to the credit agencies as appropriate.

Such an unfair system, they have exorbitant cancellation fees, how can it cost them more than a fiver to end the policy...

Harryc7

mattyprice4004 wrote: »

I'd sell something to cover the fees before they add a default - because it'll be there for 6 years if they do.

Yeah, I'll probably do that.

Harryc7

pinkshoes wrote: »

Surely the admin fee is less than the remaining 3 months that you still need to pay?

It's around £50, to me it's just exorbitantly high for just cancelling a policy.

Aylesbury_Duck

But you agreed to it when you signed up to them. You're now finding out why they are usually one of the cheapest insurers out there - they'll charge an admin fee for every minor amendment to your policy.