On DMP - Paying Insurance Monthly?

itsnowtime

Hi All,

Finally commenced my DMP in September of this year and have to say it's all thanks to this site! :T - Like a lot of people say - just wish I'd have done it sooner.

However I am now coming to the time when I will be renewing my house insurance (end Nov) and Car Insurance (end Dec). Now I currently pay these monthly via Direct Debit.

Will I still be able to do this or will the fact I'm on a DMP cause me problems?

Thanks all

Snaggles

I'm not sure of the answer to your question, but as far as I know, when you are on a DMP, you agree not to take on any new debt. Whether that extends to monthly insurance premiums or not, I don't know. But also while you are on a DMP, you technically don't have any disposeable income, because you are set a strict budget, and the rest goes on debt repayment, so there is little opportunity for saving up.

Who is your DMP through? Could you ring and ask them, so that you can put your mind at rest?

chevalier

I would have thought that if you need the insurance to keep you legal (ie the car), then this would be ok. Technically you don't need house and buildings insurance, but I would have thought it to be unreasonable to be forced to do without these. If you are paying it monthly now then then CCCS would have seen it on your income/expenditure form so think this is ok

As an aside don't forget to check you are getting the best deal for both before you get your new insurance. Also you can get cash back for taking out a new policy through sites like www.quidco.com and www.topcashback.co.uk

regards
chev

itsnowtime

Hi,

Thank you for your replies. My House Insurance has renewed automatically onto the existing direct debit. The premium rose ever so slightly and it is a very good deal so that's no longer a problem.

However in December my Car Insurance is due for renewal, I'm not concerned re the CCCS I am concerned that if I want to change companies that they may credit check me if I request to pay monthly and because my credit rating wont be that great they might not allow me to pay for it monthly..

Anyone had any experience of this - or am I worrying for nothing?

Thanks