To pay or move to competition...

Cashflowbroke · 11 June 2018 at 2:51PM

Hello, new member and as you can tell by my user name I've had some cash flow issues recently. Well that is finally starting to turn around but today I have to make a decision.

I missed 3 direct debit payments with my car insurer (I always rang up and paid by card within a day ir two from the missed payment) but as this is the 3rd time they have demanded I pay the full amount by midnight today. Let's call them Insurer A

Out of curiosity I've been looking around at other companies and it turns out I can get a full 12 months cover from another insurer (B) for much cheaper even if I pay off outstanding amounts and admin fees with insurer A I'll save about £100 and have 12 months cover from today with insurer B. Or I spend an extra £100 and finish off my cover with insurer A which is about 7 months left.

What I don't know is if I cancel with A... is that going to hurt my credit rating more than the damage I've already done.

Appreciate any wise words or advice.

Thanks

Cashflowbroke

[Deleted User] · 11 June 2018 at 3:06PM

You don't have a credit rating - just credit files.

If you want to cancel the policy and pay the associated fees, that's not a problem.

What will be a problem is if you continue to miss payments and they cancel your policy.

System · 11 June 2018 at 4:27PM

If you don't pay the full amount by midnight today, regardless of whether or not you intend to cancel THEY will cancel your insurance. They will very likelyl not cancel your insurance if you request it whilst you have arrears with them and that deadline today so if you're looking at a way out of paying the money you owe them today without any negative impacts there aren't any. If they have cancelled your insurance because you've not paid what they ask for by midnight then when getting any quotes or applying for insurance with your next provider you MUST answer YES to the question "have you ever had a policy cancelled or declined?" That will alter how much you pay and could be quite significantly.

You will still owe the arrears and if you don't pay them they can pursue you through the county court and debt recovery companies.

Cashflowbroke · 11 June 2018 at 4:42PM

Thanks for your replies.

To be clear, the letter states if I don't pay the full amount for the rest if the year, yes they will cancel the policy.

However the letter also states I can call them pay them what I owe for the previous month (which I tried to do 2 weeks ago) and end the policy (+admin fee).

Doing the latter and getting cheaper insurance elsewhere is what I'm considering but I don't know what it would do to my credit rating (or file).

If I owe money, it gets paid, I've already tried. I wouldn't let anything go to court over a monthly payment and I'll happily pay the full amount for the rest of the year if that was my only option but it isn't.

sourcrates · 11 June 2018 at 4:50PM

Cashflowbroke wrote: »

Doing the latter and getting cheaper insurance elsewhere is what I'm considering but I don't know what it would do to my credit rating (or file).
.

Wont make the slightest difference as car insurance companies do not report on your credit file. (well mine don`t anyway).

Does yours, have you looked ?

Cashflowbroke · 12 June 2018 at 7:54AM

I hadn't, I just paid the full amount in the end so I'm covered until Jan. I think they would have had me on a cancellation fee to stop moving being worth it, they're running a business after all.

Cheers for everyone's replies

DCFC79 · 12 June 2018 at 9:01AM

If you choose to pay monthly then get a direct debit setup.

To pay or move to competition...

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