Hi pinalta.

You're welcome to express a view.

We do know that some insurers perceive personal insolvency (protected trust deed or sequestration) to be an extra risk factor for which they'll choose to charge more than normal, or even choose not to offer cover at all.

We also know that other insurers don't perceive this to be a significant risk factor at all.

One of our members that works in the insurance field has written here a number of times that insurers are working harder than ever to avoid paying out on claims given the pressure on their profits.

There may well therefore be some truth to the information that you received... but I'm not sure that it applies to all insurers or that it should necessarily be a major source of concern to honest people in trust deeds.

Should you always inform insurers whether life or car etc about a td?

Is this right? I have car insurance and don't ever remember being asked any questions about debts when i filled in the forms online. Really worried now as my insurance is already very expensive.

Nicola

We have a member, Hamish, who works in insurance.

The information that he added to the following thread about the disclosure of insolvency status to insurers is very interesting and useful:

http://www.trust-deed.co.uk/forum/topic.asp?TOPIC_ID=1289&whichpage=1

His advice is that disclosure to insurers would be a sensible step to take in case their underwriting criteria take issue with insolvency (trust deed or sequestration).

I filled in car insurance recently online and although at the moment don't have a trust deed, they did state that if I wanted to pay monthly I wouldn't be able to if I had any ccjs/td etc. il def inform my life insurance and crit illness if I go ahead with Td just in case there's a way they could get out payin if the worst was to happen.

I think it might be different for that type of cover fifi, but you should still seek specialist advice to be sure.

Insurers may consider persons that are insolvent to be financially vulnerable, and therefore more likely to make questionable claims regarding property. Home and car and business insurance cover therefore might have exclusions, disclosure requirements, or premium uplifts.

I don't think all insurers take this view.

I've never seen any evidence suggesting that such a view could be justified.