www.iva.co.uk

My car insurance renewal came through this week, I obviously can't afford to pay nearly £600 in one go so I said monthly as I always have, paid a deposit and all was fine

Now I've had a letter through from Premium Credit saying I've applied for a loan through my car insurance company and they've refused it

How can this be? I've paid my car insurance monthly every year and I'm only 3 months away from finishing my IVA. I'll be glad when the whole thing is done to be honest - it's been a horrible experience

That's not good fuzzy, unfortunately it does seem to be happening more often at the moment.

The only thing I can suggest is that you phone round as there are companies willing to do monthly payments.

Well I've had my renewal through from my current company who use Close Premium Finance and they are absolutely fine with me carrying on paying monthly

How insane does a company have to be to refuse a £65 a month payment from someone on over £30k a year?

It's,very silly and, let's face it, if you don't pay then your insurance just gets cancelled.

Glad you got sorted! Some of these restrictions are crazy!

Happened to me with my home insurance - makes me really angry x

We have made a few claims over the past three years and have still had no problems with the insurance.

Be interesting to see what happens this year when it needs renewing!!

More insurers are using a 3rd party companies for the credit part of car insurance policies so more people will be turned down. We used swinton without any such troubles.

Paul

I used Diamond last year so will await my renewal with trepidation! All this is so unnecessary!

Well our renewal with Kwik fit was over 100% more than last year, but they were offering interest free monthly payments (paid for in the extornionate increase no doubt) so we went with LV instead which was 100% cheaper than Kwik fit but they wouldn't offer monthly payments so we had to pay it in one go.

Not sure what will happen when the house insurance is due in July

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Broke of London

I used Diamond last year so will await my renewal with trepidation! All this is so unnecessary!

Totally this BoL,if you opt to pay monthly and dont pay they cancel the insurance. Even if they asked for 2 months payment in advance then the rest of 10 monts(as some do).

To expect people to pay a year up front is just plain silly!!!

Paul

I don't mind paying the lot upfront if I can afford it and have done so in the past.

They should not penalise those of us who can't at the moment, especially when they can just cancel the insurance if you don't pay!!

I think a lot of the policies are changing though, I know with one I had a couple of years ago was if you cancelled the policy after the 14 days cooling off period, you still have to pay 75% of the premium plus an admin fee of £50, after 9 months of payments you still have to pay 100% of the premium, so I don't think a lot of policies now are just as cut and dried as only paying per month for what you have used.

I think the insurer pays the full year up front and so lends us the money which we repay monthly so there is the element that they 'lose' money is we default on our loan repayments. But who doesn't pay their car insurance...I'd rather go without electricity!

It depends upon how the deal is financed. Some insurance companies, simply allow monthly repayments and take the risk themselves. These aren't always credit checked. However, many companies finance the policy by you taking out a loan, through them, with a 3rd party finance company -- who will credit check.