www.iva.co.uk

Hi I entered an IVA in May 2018 and the first problem I’ve encountered is today when I’ve just been refused a direct debit for my car insurance. As my 19 year old daughter is named on my insurance it’s £1200 per year and I can’t afford it in one payment. Does anyone know of an insurance company that will allow me to pay monthly? They have agreed to take it now over 3 payments but that will still be really difficult for me.

Buddy1 wrote:

Hi I entered an IVA in May 2018 and the first problem I’ve encountered is today when I’ve just been refused a direct debit for my car insurance. As my 19 year old daughter is named on my insurance it’s £1200 per year and I can’t afford it in one payment. Does anyone know of an insurance company that will allow me to pay monthly? They have agreed to take it now over 3 payments but that will still be really difficult for me.

I was with Direct Line through my IVA and paid monthly with no issues. Have a word with your IP and see if you can have a payment break for three months ( they will be added back on at the end).

I never had a problem with paying in instalments.

Hi many thanks for that I will try Direct Line. I spoke to my IP and they said I could miss 1 month and catch it up later but I’d rather try and find an insurance company I can pay monthly as I’m going to come across this issue again until my daughter is no longer on my insurance.

I have swapped between AA and RAC theoughout my iva and able to pay monthly throughout.
Hope you can get it sorted.

Thanks for that it’s really helpful. I felt so low about it yesterday as it’s the first time it’s been a real issue having an IVA. I’ve been managing to budget and although Christmas seemed strange without credit it was liberating! I think the insurance is tricky due to my daughter making it so expensive.

A lot with insurance paid by monthly installments relates to how the insurance company funds the premiums. Some firms simply "self fund", just allowing you to pay the premium as you go sort of thing whilst others get the whole premium "up front" from a finance company, which you repay just like any other loan. So the finance company , not the insurance company, decides who to loan to.

Yes that seems to be what Co op young drivers do, they use Premiuim Credit. Premium credit have just emailed me this morning and asked if I can send a signed letter from my IP confirming that they are happy for me to enter into a credit agreement with them , which they will then consider when they review my appeal -so fingers crossed!