Car insurance

SIM

This is a bit odd but I went Bankrupt in June this year.

My insurance renewal has come up and I rang the Co op who gave me a great quote. I advised them I was bankrupt and the lady said that shouldn't make any difference. She then gave me 2 payment options, one of which was monthly via direct debit.

I said, I was surprised that was an option due to the bankruptcy but she said she could only go on what was offered on her screen and that as far as she was concerned it was fine! I am confused? It's great that I can pay via monthly payments but am confused as to whether it will be taken away?

The quote was about £400 for the year so does it make a difference that it is under £500.

Any ideas?

TheGardener

Ask for confirmation in writing. It may be that its because its under £500 - or it maybe that the lady at the call centre is on commission...

terrence45

I doubt it can be taken away if you take the deal and they send you the terms and conditions and you're not breaking them. If, of course, she lady is wrong and the policy T&Cs would not cover you for monthly direct debit, then you'd have to cancel.

maxmycardagain

terrence45 wrote: »

I doubt it can be taken away if you take the deal and they send you the terms and conditions and you're not breaking them. If, of course, she lady is wrong and the policy T&Cs would not cover you for monthly direct debit, then you'd have to cancel.

and cancel yourself, the worst thing you can get on your insurance history is "have you ever had a policy cancelled by an insurer" "yes"

mwarby

so the £500 rule from https://www.gov.uk/bankruptcy/restrictions
- borrow more than £500 without telling the lender you’re bankrupt

You've told the insurance company that your bankrupt, its likely that they will have done some form of credit check, and your details will be insolvency register. I think it'd be difficult for insurer to say they werent aware

Written confirmation would be ideal of course, but probably not easy to get. One option might be to have them add a note on your policy, and then to call back to check the note is actually there

maxmycardagain

Credit for insurance is unique in that any default in payments sees cover cancelled....hence rarely to users default