We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Car Insurance Credit File

Options
Hi Guys,

Took out a car insurance policy with Tesco Bank today and signed up for the monthly payment offer as it wasn't too steep.

The advisor said they only soft check and don't report to credit agencies unless you default.

Does that sound accurate to you guys? Their documents are quite light on the ground surrounding what they do or don't do.

Thanks
JGUK
Thanks
JG

Comments

  • xlnc99
    xlnc99 Posts: 1,673 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    never had any soft check or hard check when ive done car insurance

    ive seen other threads on this where they have. Im not sure on the protocol regarding insurance but i alwways do monthly payments and have never been credit checked any sort of way

    maybe they do it as an identity check and maybe ive never had to do it because ive always had no claims bonus and they always do a check on that so they have never needed to do a credit check for me
  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    xlnc99 wrote: »
    never had any soft check or hard check when ive done car insurance

    ive seen other threads on this where they have. Im not sure on the protocol regarding insurance but i alwways do monthly payments and have never been credit checked any sort of way

    maybe they do it as an identity check and maybe ive never had to do it because ive always had no claims bonus and they always do a check on that so they have never needed to do a credit check for me

    House insurance has resulted in a litany of soft checks whenever I've done a comparison.
  • JGUK
    JGUK Posts: 222 Forumite
    Seventh Anniversary 100 Posts Photogenic
    Yes but when you pay the car insurance off in instalments over the year and in this specific case via Tesco Bank Car Insurance & Tesco Bank, do they post the account reporting to any of the credit files?

    Aviva have done in the past to CallCredit/TransUnion only - but I think they've stopped all that now with their new Aviva Plus insurance.
    Thanks
    JG
  • Ask Tesco if they report to the CRA’s
  • sambaird
    sambaird Posts: 152 Forumite
    Third Anniversary 100 Posts Name Dropper
    I don’t think that they would report the monthly payments to a CRA as paying for an insurance premium on a monthly basis is not a credit agreement.
    If you missed a payment, the policy coverage would simply be terminated.
  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    sambaird wrote: »
    I don’t think that they would report the monthly payments to a CRA as paying for an insurance premium on a monthly basis is not a credit agreement.
    If you missed a payment, the policy coverage would simply be terminated.

    Actually, it is.

    Insurance is (usually) an annual policy, so by opting to let you pay monthly you are being extended credit and along with that there is a credit agreement. Whether that is reported to the CRAs I couldn't tell you as I pay annually.

    A few links to people getting credit agreements for insurance being paid monthly...

    https://forums.moneysavingexpert.com/discussion/4902638
    https://forums.moneysavingexpert.com/discussion/3132608
    https://forums.moneysavingexpert.com/discussion/4897202
  • sambaird
    sambaird Posts: 152 Forumite
    Third Anniversary 100 Posts Name Dropper
    Happy to stand corrected!
  • had car and bike insurance on pay monthly (10 payments per yr or whatever) , lots of soft credit searches

    this year is the first time that motorcycle insurance is shown in my credit file , each month showing how much is left to pay
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.