DRO car insurance pay monthly

magpiemad7

I am currently on the insolvency register and I am looking for car insurance for my car and I am unable to pay upfront. I understand that I must not obtain credit of £500 or more, without first informing them that I am subject to a debt relief order. Does Pay Monthly car insurance count as credit ?

mwarby

I think it would count as credit, most that I've seen is structured as a loan (often at not great rates) to pay the full premium.

I think you may struggle to get insurance paid monthly, it's possible from a thread in bankruptcy forum that you might be able to get a credit card with sub 500 limit and then use that to get insurance(the rate will be pretty high though). Edit - looks like you've just started DRO, a credit card is IMHO unlikely

If you can possibly save for next time you'll find things so much easier, and you'll save money both on interest and getting the cheapest policy(as very few will say no due to DRO for an annual policy)

sourcrates

Car insurance is obligatory by law, i have had pay monthly car insurance through both IVA and DRO with no problems whatsoever.

mwarby

The fact it’s obligatory to have insurance when you have doesn’t mean it obligatory for the insurers to offer it, not is running a car obligatory

I never had pay monthly for years, I was lucky that I had time to save for it. Good to know at least some insurers offer it even when your insolvent 

sourcrates

mwarby said:

The fact it’s obligatory to have insurance when you have doesn’t mean it obligatory for the insurers to offer it, not is running a car obligatory

I never had pay monthly for years, I was lucky that I had time to save for it. Good to know at least some insurers offer it even when your insolvent 

The point i was making is that because insurance is a legal requirement, most companies will still offer monthly payments to the worst of credit applicants as otherwise it would not be affordable.