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Monthly car insurance payments whilst on DMP
ChillyP
Posts: 61 Forumite
Hi,
Does anyone know if it's easy to pay for car insurance monthly if you are on a DMP?
Does anyone know if it's easy to pay for car insurance monthly if you are on a DMP?
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Comments
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Ive been on a dmp for three years with four defaults and I've never had any problema paying for car or home insurance monthly. It's a very low risk for them as there is nothing to recover, they can simply cancel the insurance if you don't make payments.
If it is a problem for you the Aviva let you pay monthly with no loan, I don't see why all companies can't be like that really.0 -
It is a loan, even if it is interest free.Rob5342 said:Ive been on a dmp for three years with four defaults and I've never had any problema paying for car or home insurance monthly. It's a very low risk for them as there is nothing to recover, they can simply cancel the insurance if you don't make payments.
If it is a problem for you the Aviva let you pay monthly with no loan, I don't see why all companies can't be like that really.
As why dont all companies offer interest free loans? The same reasons banks dont. Intermediaries in particular have to pay for the policy in full up front to the insurer and some simply dont have the cashflow to be able to do this hence they use external premium finance companies as to preserve their cashflows.0 -
Car insurance is a statutory requirement and is not subject to the same credit checking scrutiny other credit products are.
If you don`t pay, you don`t get insured, pretty simple really.
I`ve been through two insolvencies and have always paid monthly for car insurance, on a rolling 30day contract, never once being declined ever.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The bank I used to work for only asked about bankruptcy or unsatisfied CCJ’s to determine whether DD would be an option0
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The time value of money. A premium received up front can be invested immediately; the same amount received in installments can only be invested as it trickles in over time. The interest charged on the loan offsets this differential.Rob5342 said:
If it is a problem for you the Aviva let you pay monthly with no loan, I don't see why all companies can't be like that really.0
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