When you’re looking for car insurance, you want to find it at the best possible price. Unfortunately, the biggest thing that insurance providers take into account when calculating a quote is how much risk you pose i.e. what is the likelihood that you’ll a. make a claim, or b. fail to make payments. For those with past financial troubles then insurance providers will consider them a higher risk when it comes to making payments and therefore they’ll have to pay a higher premium.

Types of financial troubles insurance providers will take into account

Below are some of the financial problems that an individual might have that most insurance providers will take into account –

  • Bankruptcy - If you’ve been declared bankrupt in the past then this will certainly affect the price you pay for car insurance. Bankruptcy is often viewed as an easy way out of paying debts but this is far from the case. Bankruptcy must be declared through the courts and you are then obliged to inform any insurance providers of it as well as employers. Bankruptcy also means you won’t have access to a standard bank account where you can pay direct debits and receive salary payments. For these reasons, declaring yourself bankrupt should be viewed as a last restort
  • IVAs - Individual Voluntary Arrangements work much like Debt Relief Orders in that they’re sought in order to make paying off creditors manageable. They usually last 5 years and during that time, any creditors will not be allowed to charge you any additional interests or charges and you will only be expected to pay what you can afford outside reasonable living expenses. Unfortunately, IVAs can often affect what price you’re able to get car insurance for.

Other factors insurance providers take into account

When calculating the cost of a quote, insurance providers don’t only take your financial status into account. Below are some of the other factors that play a role –

  • Your age
  • Your driving history
  • Any criminal or driving convictions
  • The value of your vehicle
  • Where your car is stored
  • How it is used
  • Where you live

Where to find care insurance when you’ve had past financial difficulties

If you’ve had past financial difficulties and are worried that you want be able to find car insurance at a reasonable rate then there is a solution to this problem and that is to get your insurance from a specialist provider. Specialist insurance providers for people with past financial troubles will take your unique circumstances into account and provide a quote that’s fair. Unlike a lot of mainstream insurance providers, specialists will look at the exact nature of your financial difficulties and aim to provide you with the level of cover you need at a rate you can afford.