Yes Ive been told by the Insurance people that newspapers know this subject but here goes
Paying by direct debit monthly can seriously affect your claim should you write your vehicle off
For Example as a youngster you Insure your vehicle for say £2000 (what you paid for it at the forecourt) when you buy insurance they ask what value of the vehicle is you say £2000
They explain that excess will be say £250 and payments will be £80 per month by direct debit or £750 for complete year.
Now most people I have asked at work pay by Direct Debit
Here comes the crunch (taking the pun) 3 Months passes and then
You crash your vehicle and it becomes a total write off as the Insurance assessor says vehicle is only worth £1000
A call from your Insurer says when you claim "well that's £1000 minus £250 leaves £750 oh and by the way the REST OF THE POLICY MUST BE PAID FOR ! so 9 x 80 = £720 that leaves you with £30 in total for your loss of vehicle ( luckily you weren't injured and in hospital for weeks)
Almost everyone I have asked at my workplace that includes over 500 people pay by Direct Debit in these times of Austerity who has large amounts of spare money lying around to pay for Car Insurance
Just to add salt into the wound, this is on a "Fully Comprehensive" Insurance Policy and the Insurers have promised if I don't claim they will give me the lowest quote for my new vehicle.
I know they have to make a profit but this is makes Car Insurance a mockery, no wonder a lot of people drive without insurance.
This I believe needs Addressing
p.s. Have you looked at your policy ??