Bankrupt entered into an Individual Voluntary Agreement (IVA) or Debt Relief Order (DRO)? You can still get car insurance quotes at sensible prices
The panel of specialist insurance providers can provide cover for people with a previous bankruptcy, an IVA, DRO or a bad credit record. They believe that your past shouldn’t have to be a guide to your future.
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A guide to car insurance for those who have been declared bankrupt
Being declared bankrupt can affect you in several ways, from not being able to hold a regular bank account, to finding car insurance at a competitive rate.
When you apply for car insurance online, insurance providers will take into account factors such as your age, the value of your vehicle and the level of cover you need when providing you with a quote. If you have been declared bankrupt, you will be considered higher risk and this will be reflected in the price. Bankruptcy will usually stay on your credit report for 10 years, so even if you don’t declare it, insurance providers will know.
Other financial issues that can affect the price of car insurance
- Individual Voluntary Agreements (IVA) – IVAs are a way to ensure you only pay creditors what you can afford to pay, after your living expenses. It also ensures you can’t be charged any additional fees or interest for the duration of the agreement. Unfortunately, IVAs do impact your credit score negatively and this means you can expect to pay a higher rate for car insurance
- Debt Relief Orders (DRO) – Debt Relief Orders allow you to have your debt written off completely. They are only eligible for people with less than £15,000 total debt and few assets. As you would imagine, DROs also affect your credit score in a negative way
Why do Bankruptcy, IVAs and DROs affect the price of car insurance?
Bankruptcy, IVAs and DROs will affect the price you can expect to pay for car insurance for two main reasons. Firstly, insurance providers will consider you a higher risk when you have these. While you might not be any more likely to make a claim, you will be considered more likely to miss payments and therefore your premium will be higher.
The other reason is that they will affect your credit rating. Just like any other company where you arrange monthly payments, most insurance providers will do a credit check to see if you’re eligible. While having poor credit might not cause insurance providers to turn you down, it will mean they’ll charge a higher rate for your policy. That said, the panel of insurance specialists can help find tailored car insurance for IVA customers at the best price available.
Going Through Bankruptcy: It’s Common and You’re Not Alone
In the second quarter of 2020, a total of 30,000 bankruptcies were declared, representing a 40% increase from the same period in the previous year. These figures serve as a stark reminder of the economic impact of the pandemic and subsequent cost of living crisis and how it’s pushing more people towards financial hardship. Moreover, recent estimates suggest that around 6.1 million adults in the UK are currently struggling with severe debt issues.
[box type=”info”]Did you know…?
Help is available from The National Debt Line to help choose the best debit solution for your needs.
[/info_box]Why you need car insurance from a specialist provider
Specialist insurance providers will take a much more personalised approach and look at your unique circumstances before giving a quote.
As well as making it difficult to get credit again, being declared bankrupt means you will find it harder to get affordable car insurance. The expert insurers on the panel are committed to treating everyone fairly, regardless of their previous financial struggles.
The insurance panel specialise in car insurance for drivers who have been declared bankrupt, looking at each case individually to offer you a comprehensive range of bankrupt car insurance policies, finding the right policy for you, at a good price.
Tips for Reducing Car Insurance Costs
Securing affordable car insurance after bankruptcy, IVA, or DRO can be challenging, but not impossible. Here are some tips to help you reduce your car insurance costs:
- Improve Your Driving Record: A clean driving record can significantly reduce your car insurance rates. Avoid speeding, follow traffic rules, and drive safely to maintain a good driving record.
- Choose a Cheaper Car to Insure: The make and model of your car can impact your insurance rates. Opt for a car that’s cheaper to insure to reduce your costs.
- Take Advantage of Discounts: Many insurance providers offer discounts for safe driving, low mileage, and more.
Benefits of bankruptcy car insurance
- Highly tailored policies – a rise in financial crime in recent years means more people are being declared bankrupt than ever before. Every individual case is different. The specialist insurance panel tailors its policies at affordable prices to find a bankrupt car insurance policy that is right for you
- Compare bankruptcy car insurance quotes easily – you will receive multiple car insurance quotes, together with the benefits of each, allowing you to compare them all and decide on the right policy for you, quickly and easily
- Save time and money on bankruptcy car insurance – searching for a specialist insurance policy doesn’t have to take hours in front of a computer screen. The 30-second form is easy to complete, with the quotes usually arriving instantly, covering all levels of cover. So you can be done and dusted in no time.
- Flexible payment options for bankrupt people – if you have been declared bankrupt, the last thing you want is to have to pay for your car insurance in one lump sum. The panel can usually offer multiple payment options on bankrupt car insurance policies to make life easier for you
- Instant documentation – on most occasions once you have applied for your specialist policy you can relax in the knowledge that as soon as you have paid, you will receive your documents. It’s that quick.
Get your quotes now
If you want multiple quotes from a panel of car insurance providers, specialising in cover for people with financial difficulties, then you’re in the right place. Simply click the green button below and fill in a quick form to get access to multiple quotes. Then all you have to do is pick the best one!
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Motor insurance with other financial issues is also available!
- The panel is capable of assisting with car insurance for individuals who have a CCJ (County Court Judgement) or a bad credit record, which have become more prevalent issues.
- Attention van drivers! The panel of insurance providers offer van insurance options for those who have experienced bankruptcy, Individual Voluntary Agreements (IVA), or Debt Relief Orders (DRO). You can easily obtain an online quote and purchase insurance through the platform.
Glossary of Personal Debt Solutions
| Type | Description | Duration |
|---|---|---|
| Individual Bankruptcy | Individual bankruptcy is a form of bankruptcy for self-employed individuals and sole traders. It typically lasts for 12 months, after which the individual’s debts are discharged, subject to certain conditions. This option is suitable for self-employed individuals and sole traders who are unable to repay their debts. | 12 months |
| Individual Voluntary Arrangement (IVA) | An IVA is a formal agreement between an individual and their creditors, which allows them to pay off their debts over a period of time, usually five years. It is a legally binding agreement and offers protection from legal action by creditors. This option is suitable for individuals who have a regular income but are struggling to meet their debt repayments. | 5 years |
| Debt Management Plan (DMP) | A DMP is an informal agreement between an individual and their creditors to repay their debts over an extended period. It is not legally binding and does not offer protection from legal action by creditors. This option is suitable for individuals who have a regular income and can make reduced debt repayments. | Flexible |
| Debt Relief Order (DRO) | A DRO is a form of insolvency for individuals with low income and low assets. It typically lasts for 12 months, during which time the individual’s debts are frozen, and after which they are discharged, subject to certain conditions. This option is suitable for individuals who have a low income, few assets and debts under a certain amount. | 12 months |
| Debt Arrangement Scheme (DAS) | The DAS is a Scottish government initiative that allows individuals to repay their debts over an extended period. It is not legally binding and does not offer protection from legal action by creditors. This option is suitable for individuals who live in Scotland and have a regular income but are struggling to meet their debt repayments. | Flexible |
