What happens if you stop paying your insurance installments...?

[Dave20046]

More tight-fisted curiosity then anything, I'm not interested in riding uninsured.
But with "temporary insurance"/"5 month policy" quoting me £100 per month for the little SV it's obviously cheaper for me to just pay circa £30 a month for a year. But bar not having any NCB for the year what's to stop me just stopping paying when I'm done for the year? i.e start the policy in March and come November just stopping paying.

I guess I probably couldn't do it two years on the trot as there's that "how many years continuously insured question"? Which is a minimum of 2 IIRC.
Insurers don't have a "bad customer" type list that they share and up the prices on do they?

I'm just figuring it's expensive running a car, bike and eating, I went out on the bike like 6 times or something daft last year due to being a tit with a spanner & working too much - I'm just not a fan of paying for something I don't use.

...any thoughts?

[yorkie_chris]

Well it's a credit agreement you take out when you buy insurance, so you can have your insurance cancelled, which may bite you on the *rse later, and you'd still be indebted to them as per the agreement.

You could cancel the policy, but then there would be charges on the interest of the debt and likely hefty fees.

I don't like paying monthly, bloody rip off, better to pay it outright.

[Dave20046]

same I always used to pay outright...but then this thought's been flying around.
Thanks though that's what I needed to know, whether it was like a bad credit rating. And yeah come to think of it there is the "have you ever had insurance declined or cancelled" question.

Bastids.

[Dave20046]

Originally Posted by yorkie_chris

I don't like paying monthly, bloody rip off, better to pay it outright.

....That said, whoever it was that was pestering me to insure with them when my renewal was up (might have been MCE or bennets) claimed it was £8 extra PA to pay monthly..in which case would probably be worth it. But I'd definitely be double checking!

remeber that lovely question asked during every quote

HAVE YOU EVERY BEEN REFUSED INSURANCE OR HAD INSURANCE CANCELLED

bing evry quote from then on will be much higher as your a bad risk

[G]

It costs more to pay by instalements anyway, normally about 29.9%APR

So if you calculate including cancelations fees etc, which they will chase you for through debt collection agencies, after 6 months it's not worth cancelling because you have already spent more than paying up front anyway.

Originally Posted by yorkie_chris

Well it's a credit agreement you take out when you buy insurance, so you can have your insurance cancelled, which may bite you on the *rse later, and you'd still be indebted to them as per the agreement.

You could cancel the policy, but then there would be charges on the interest of the debt and likely hefty fees.

I don't like paying monthly, bloody rip off, better to pay it outright.

Depends on the insurer. Most are like that, you are buying a year's worth of insurance, but paying for it via a credit agreement with monthly instalments as you describe. It's worth checking though: A minority, operate on the principle you are "paying monthly" and the cover effectively runs on a monthly basis.