DRO & Car Insurance

CurlySue2017
CurlySue2017 Posts: 462 Forumite
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in IVA & DRO
Hello again!

I have posted previously about my OH and our (his) DRO journey and have received brilliant advice, so I have another quick question please:

His car insurance is due for renewal and his current insurer have sent the renewal pack through, which is surprisingly very reasonable! So ideally, he would like to just let it renew. The insurers have offered a monthly payment plan - basically nothing has changed however I am unsure of what he needs to do.
The policy is over £500 (just) and we are aware that there is a £500 rule about credit whilst subject to a DRO.

So my first question is - will this be classed as credit? I'm thinking no because it is a legal requirement to have insurance - but of course I am not sure.

The second question is - does he have to specifically advise them about the DRO? I would assume that they credit checked him before sending the renewal and it does not ask anywhere in the paperwork about informing them, so is he safe to just renew and leave it at that?

Thanks again for any help!

Comments

  • CurlySue2017
    CurlySue2017 Posts: 462 Forumite
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    Anyone? :o
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
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    edited 18 January 2019 at 3:01PM
    Hi, don`t worry about it, everyone needs insurance, as you say, its a legal requirement.



    You do not need to do anything, or tell anyone anything, just re-new as per normal.
    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-letter
  • Craig1981
    Craig1981 Posts: 769 Forumite
    First Anniversary
    £500 does seem high for car insurance (if the vehicle is low valued as you on a DRO)

    have you used a comparison site just to be sure this is a good deal?
  • fatbelly
    fatbelly Posts: 20,454 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    All insurers offer monthly plans - you pay a bit of interest but I guess you don't have access to any other way of paying at the moment. I've never known anyone with a DRO have any problems with that.

    However, you should not just 'let it renew' - at the very least phone and haggle.

    There are massive savings to be made on car insurance precisely because most people 'let it renew'. So companies try to hook you in with new customer deals.

    There is lots of advice here

    https://www.moneysavingexpert.com/car-insurance/
  • CurlySue2017
    CurlySue2017 Posts: 462 Forumite
    First Anniversary Name Dropper First Post
    Thankyou for taking the time to reply.

    Now that we know that he has the option to "shop around", we will get on the comparison sites and I'm sure that we can get this price down, we were just concerned that he may be rejected for monthly payments with a new company due to the DRO.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    I'd definitely recommend shopping around for car insurance, given that your car when you have a DRO isn't supposed to be worth any more than £1000. £500 is far too high! I've had a DRO, will complete my 6th year next month, phew! And I have been allowed to pay some items monthly. I think it just depends on individual companies. Good luck, but I have to say that the DRO saved my mental health but you have to be very careful with finances during the 6 years.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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