Premium finance and car insurance?

[Skyline luke]

Last week i took a insurance policy for my girlfriends car and opted for the monthly payment. I thought that was that and they would just take the monthly payment each month just like every other policy i have had. But today i got an email from Close Premium Finance informing me they are handling the monthly payments. I called them to find out what was going on as i have never heard of this before and they told me they pay the insurer for my entire policy and the repayments are made to them which i am fin with,but they have asked me to sign a credit agreement. I asked them if i have been credit checked for this and they told me that they do not use credit reference agencies and that i have not been credit checked and that this will not effect my credit report. Has anyone else paid their car insurance with a premium finance company? is it true that the do not do apply for credit?

[jamoor]

They probably don't check as if you stop paying they will just cancel the policy so there's no risk.

Oh and close premium are a big company that commonly finance insurance premiums.

[Skyline luke]

jamoor said:

They probably don't check as if you stop paying they will just cancel the policy so there's no risk.

Oh and close premium are a big company that commonly finance insurance premiums.

I've seen a lot in the net about them seem to do a lot of business.

[anonymous-user]

Skyline luke said:

I've seen a lot in the net about them seem to do a lot of business.

They don't credit check you, but if you default and the refund of premium doesn't cover the outstanding amount to them then they will pursue you for the difference, although in some circumstances they have an arrangement with the introducing insurance broker who will cover that difference, having earned a nice commission for arranging the finance.