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

pmduk

It's something you need to include into the cost of changing or giving up cars

CardinalWolsey

When cancelling, insurance companies will typically refund an amount proportionate to the cover that you haven't used - so in your case, they would refund ~25% (i.e. 3 months out of 12 that you won't have cover for). They then charge a cancellation fee to cover their administration costs, which as you have stated is £50. So (for the sake of easy maths), imagine your annual policy cost £1200. Cancelling with three complete months unused, you would expect a refund of £300. Less the admin fee of £50, and you would receive a net refund of £250.

However, you didn't pay for your insurance up front - you took a loan out with the insurer to pay for it monthly, at £100 (+interest) per month. The insurance company therefore have no balance to deduct the administration fee from, and refund the difference. Consequently, they have raised a bill for you to pay the £50 administration fee directly.

And yes, they or whomever they sell the debt on to, will a) raise a marker on your credit file and b) take you to court for the money.

macman

They don't need to take you to court for £50, but they'll certainly default you.

mattyprice4004

Harryc7 wrote: »

Yeah, I'll probably do that.

Been there myself in rough times - good luck.

flipmepoo

Reading this post with interest . First off all chances of getting a Ccj or default registered for one of these is minuscule.
The insurance market on the whole is unregulated by the consumer credit act and the terms of the instalment loans generally fall into this category too as far as the credit reference agencies are concerned, despite the insurance market being highly regulated in other areas. Best advise is not to worry, everyone knows these fees are a stripe up. The time will come when they can no longer charge them someday . In the meantime if anything does come up on your file just dispute it- happened to me with the aa and it got removed . They say the agreements are regulated credit buts its rubbish . Theyre not allowed to put anything on your file and they shouldn’t . There is an article on the checkmyfile website where this is mentioned.

unholyangel

flipmepoo wrote: »

Reading this post with interest . First off all chances of getting a Ccj or default registered for one of these is minuscule.
The insurance market on the whole is unregulated by the consumer credit act and the terms of the instalment loans generally fall into this category too as far as the credit reference agencies are concerned, despite the insurance market being highly regulated in other areas. Best advise is not to worry, everyone knows these fees are a stripe up. The time will come when they can no longer charge them someday . In the meantime if anything does come up on your file just dispute it- happened to me with the aa and it got removed . They say the agreements are regulated credit buts its rubbish . Theyre not allowed to put anything on your file and they shouldn’t . There is an article on the checkmyfile website where this is mentioned.

If you're going to give advice, please try and make sure its not of the type that could have some quite serious negative impacts on people.

Some insurers choose not to report to credit reference agencies.

They are (regulated). Just in order to affect your credit history, they need to make you aware defaulting can affect it and not all insurers bother doing that because they can instead just share with other insurance companies that you've had a policy cancelled.

When you take a policy on pay monthly, generally there are two contracts. One for the insurance and one for the "loan" you've agreed to take and pay back monthly. Not always, but usually. Gyms can operate in the same way. Its not the gym/insurance agreement thats being defaulted in those instances, its the loan.

davidmcn

flipmepoo wrote: »

Reading this post with interest.

But not enough interest to note it's from a year ago?

neilmcl

davidmcn wrote: »

But not enough interest to note it's from a year ago?

Excellent :rotfl::rotfl::rotfl:

nyermen

Please please tred carefully here. Normally the situation is this (of course there are always exceptions) that there are two parts if you pay monthly:
1) The years insurance (taken out as a year policy - check the documents).
2) The finance for the insurance, paid monthly (can be a different company to the insurer)
The two are both linked and separate: If you decide to cancel the policy, there will be a cancellation charge etc (as per the contract), based on the yearly policy. Then, there will be outstanding finance to pay (either remaining months, or all in one go). eg. if you make an RTC claim, the whole amount can sometimes be due in one go. The finance you have to be very careful with:
1) It is a credit agreement, therefore your credit file can be marked without any court case (and in fact should be, if the lender is using an agency, it's a two way relationship, they get your file info, and they should accurately report your behaviour in return...)
2) If you fail to pay at any point, then depending on the agreement, the finance may be terminated AND your insurance could be automatically cancelled with all the nasty "you have to declare a cancellation for life" that comes with that.

Sorry to jump onto what I've just realised is an old thread, but I believe "flipmepoo" isn't correct, and the bumping of this thread means it'll be back on search engines again.

neilmcl

nyermen wrote: »

Please please tred carefully here. Normally the situation is this (of course there are always exceptions) that there are two parts if you pay monthly:
1) The years insurance (taken out as a year policy - check the documents).
2) The finance for the insurance, paid monthly (can be a different company to the insurer)
The two are both linked and separate: If you decide to cancel the policy, there will be a cancellation charge etc (as per the contract), based on the yearly policy. Then, there will be outstanding finance to pay (either remaining months, or all in one go). eg. if you make an RTC claim, the whole amount can sometimes be due in one go. The finance you have to be very careful with:
1) It is a credit agreement, therefore your credit file can be marked without any court case (and in fact should be, if the lender is using an agency, it's a two way relationship, they get your file info, and they should accurately report your behaviour in return...)
2) If you fail to pay at any point, then depending on the agreement, the finance may be terminated AND your insurance could be automatically cancelled with all the nasty "you have to declare a cancellation for life" that comes with that.

Sorry to jump onto what I've just realised is an old thread, but I believe "flipmepoo" isn't correct, and the bumping of this thread means it'll be back on search engines again.

I refer you to post #18.