Car insurance advice

JTV93

Hello!
Just abit of advice to give people that I never thought about until now.
I was declared bankrupt on November 12th 2018, so with only 6 weeks to go, it's gone quick and haven't had many issues.
I had an email from my car insurance company, who I've been with for years, driving for 10+ years and 9years NCB.
The email reminded me my insurance was up in 2 weeks, but unfortunately are unable to renew my policy.
I phoned them to ask why, and they said they could only insure me if I pay it off in 1 go as I'm not allowed a DD set up with them any more as insurance is classed as a type of finance.
So I've had a look on comparison websites, and if I pay in one go, my insurance is only £500 for the year, however if I choose to pay monthly, its looking at £100 per month! I think a very unfair system.
Any who I am lucky that my father in law has offered to pay the £500 for the year as an early Christmas present so I've not issue there.
I just wanted to put this post up incase it's slipped any of your minds like it did when I was filing, so you can expect the same around your renewal and be prepared

Hope you're all having a good day.

MovingForwards

Insurance is one of the things I mention when people talk about CCJ's and bankruptcy.

As even with a CCJ I won't get accepted by all insurance companies, even if paid in full each year.

My advice is to always declare it and ask the company to check if there are any restrictions with the company insuring me, I then take their full name and extension number to cover myself.

Even on renewal, I raise it again in case they have changed their own T&C's, as well as reading them myself.

It's just not worth the risk.

thevdm

It's something that I thought of before bankruptcy. Although it is not impossible to pay monthly I don't really want the restriction of having 2 providers to chose from (who will no doubt be the more expensive insurers). I made sure that I put asside a proportionate amount of money each month after going bankrupt to cover the cost when the time came round (thankfully my car insurance was due a good few months after declaring bankrupt so I had time to prepare). Since the car insuracnce has renewed I have been putting £10 a week asside which should hopefully cover the cost on the next renewal.


I get that not everybody has the ability to pay insurance up-front, but it's a good feeling knowing it's paid up and it's a fair bit cheaper.

I include car insurance in my plans to never carry debts I can't pay immediatly (unless I can one day buy a house) and intend to continue saving throughout the year to pay it up front as long as I can.


In addition to what MovingForwards says, install one of the many free call recorders on your phone, then you'll have proof of what was said and won't be able to forget anything. Over the last couple of years it's come in handy a couple of times, but that's enough to warrant having it installed.

MEM62

JTV93 wrote: »

So I've had a look on comparison websites, and if I pay in one go, my insurance is only £500 for the year, however if I choose to pay monthly, its looking at £100 per month! I think a very unfair system.

It is not unfair. It is risk assessment.

When you pay for your insurance monthly, you are not buying one month of insurance with each payment - you are spreading the one-off annual cost of the policy over 12 months. ie You are being given credit. As a recent bankrupt you will be seen as high risk and therefore that is reflected in the charge.

SIM

I went Bankrupt in June 2019. My car insurance was due for renewal in September. I was worried that I wouldn't be able to get any or would have to pay for the year in full. Neither of these things happened.

I informed the insurers that I had been declared bankrupt. They said it didn't make any difference and that paying monthly was still an option. Therefore I renewed and it was even cheaper! It was under £500 btw.

Just to say, it's not all doom and gloom!

maxmycardagain

My broker told me a BR is considered a "moral hazard"


shame all the directors of folded LTD co's arent too then...


back in 2008 when i went BR getting insurance on finance was easy and cost no more than pre-BR - simply because if you dont keep up the payments the insurance is cancelled AND you still owe the money (its a loan).

Since then insurers have caught onto to charging £500 more to a BR..



Heres the odd bit tho....BR and a CCJ are what is asked but not IVA/DRO,etc

(well, not yet)


Insurers are worse than dodgy bookies



the reasons for BR are many and varied, illness, unemployment, divorce, etc, etc.. "Moral Hazard"?.....really?

jamiel1991

I have recently declared myself bankrupt, I used Aviva Plus which is monthly card payment not like a loan like normal i found them fairly competitive.

I know this will not help the OP, but could help someone in the future. I declared myself bankrupt on the 1st and car renewal was on the 7th, so had to find the solution fast, as i couldn't afford annual payment.