Can I get car insurance with an IVA?

There will almost certainly be some companies prepared to offer car insurance if you have an IVA. But you’ll probably have less choice and providers willing to offer cover may charge more.

Although admitting you have an IVA may reduce your options, if asked, it’s always best to be honest about your financial situation. This will help prevent potential problems down the line. Being dishonest could invalidate your cover.

When an insurance provider sees an IVA on your credit file, they’ll know you’ve had difficulties repaying your debts in the past. And if you want to pay monthly for your insurance, they may be concerned you’ll have trouble sticking to the agreed payments.

If you have an IVA and need car insurance, there are a few options to consider that might help make it more affordable:

Research insurers

Some companies specialise in offering insurance to people with bad credit.  

Compare quotes

Shop around and use comparison sites to find the best deal.

Consider paying upfront

If your budget allows, paying for your car insurance annually could help keep your costs down.

Speak to your IVA provider

If your car insurance costs go up during your IVA, speak to your IVA provider. Your insolvency practitioner (IP) might be able to reduce your IVA payments by up to 15% without permission from your creditors. You’ll need to provide proof of your increased costs before your IP will agree to this though.