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20/12/2011 3:36 pm
Hi, I am in a trust deed and currently looking a renewing car insurance, which appears to have risen drastically this year, is this a co-incidence or credit checking. On applying I notice a lot ask if you have been declared bankrupt, not sure if I should be saying yes, still seems to be a lot of stigmatization around this, despite the country being on its knees. Does anyone give us cheap insurance? Please help [?]
Moira Macdonald
20/12/2011 4:51 pm
Hi mom02.
Car insurance costs have gone up a lot in general recently. The OFT is so concerned they have launched an investigation into the costs. It's a general thing rather than being connected to credit ratings or trust deeds.
You're not bankrupt so can answer "no".
One of our members works in insurance and has advised that you double check with any potential insurer that there are no policy restrictions connected to trust deeds hidden away in their smallprint.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
20/12/2011 7:01 pm
I found that many online comparison sites asked if I had entered into any agreement with creditors in the last year,seems we are to be judged badly for sorting out our financial woes!!
Pretty poor.
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
21/12/2011 9:27 am
Hi plasticdaft.
Some insurers have policy restrictions about bankruptcy, insolvency, trust deeds or an IVA.
I suspect they ask about this on the sites you mention to try to make sure you aren't sold a policy that will not properly cover you.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
21/12/2011 12:54 pm
Does it make any difference if you pay your insurance upfront? We never spread the payments over 12 months so if it's paid in one, surely it shouldn't make a difference what your financial stuation is?
Pam
21/12/2011 1:21 pm
Thats possible pammy.
My problem with the insurance companies is they arent clear on what they mean regarding arrangements with creditors etc.
Its always the smallprint!!
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
21/12/2011 1:52 pm
Our resident expert on this is Hamish who works in insurance and who has contributed on this subject here a number of times.
The following thread includes some of his insight into insurance and trust deeds:
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
21/12/2011 6:43 pm
mom02 - Im afraid a lot of companies are increasing their rates, sometimes drastically, even if you have never claimed. Id always be upfront re TD/Bankruptcy etc as there is a VERY VERY good chance if you claim and they then do some checking (which they likely will if its a big claim)and find something they dont like they will refuse the claim. Go into your local insurance broker and they will be able to check a selection of insurers for you.
Paul - Insurers and smallprint are a nightmare, thats why I would always be totally honest as if they can wriggle out of paying claims, in todays climate, they will.
Pammy - If the TD is a problem for an insurer you can always ask them if they will accept you if you pay in full but its more than just them worrying about you paying for the policy they unfortuanately may consider that those of us whom have had the misfortune to be or have been in debt may be more likely to make a fraudulent claim to financially benefit from the policy.
Not all insurers do think this way but a lot sadly do.
Good luck everyone and merry xmas!
