Monthly car insurance payments whilst on DMP

ChillyP

Hi, 

Does anyone know if it's easy to pay for car insurance monthly if you are on a DMP?

Rob5342

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. 

DullGreyGuy

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. 

It is a loan, even if it is interest free. 

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. 

sourcrates

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.

freshstart2023

The bank I used to work for only asked about bankruptcy or unsatisfied CCJ’s to determine whether DD would be an option 

TheAble

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. 

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.