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Automatic insurance renewals- end this scam now!
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laurelchampion
Posts: 5 Forumite
This seems to be a more recent development in the insurance industry. Get a consumer to agree to pay for one annual insurance policy and hide in the small print that they will automatically take the following year’s premium. That may suit the insurance company but it is not in the consumer’s interest. I have the proof.
My insurance company Atlas Direct informed me that my travel insurance was due for renewal and that they would use last year’s credit card details for this year’s payment. I was unaware that I had agreed to this. Before phoning to complain I happened to look at their website but no policy seemed to match the price quoted in the letter. When I spoke to them they insisted I had agreed to a renewal (in the small print I guess). The price difference was because apparently renewing your policy online will always be cheaper than letting them do it for you automatically. Proof that any consumer should never renew insurance in this way and yet it is clearly the industry’s new preferred method. My travel plans vary from year to year and I won't be travelling for a few months,yet Atlas would love me to pay for them. Infact, unless you are a very frequent traveller or always go away the same weeks every year it is unlikely you will need the same renewal date. Renew from the date you are next travelling. You could probably cover every holiday for the next 4 years with only paying 3 annual insurances.
My last car insurance company did at least inform me verbally that by taking my premium they would do so automatically the following year. When I asked why, it was apparently because they are concerned we are all so busy we might inadvertently drive uninsured. Touching isn’t it! That gave me the opportunity to say no and he removed the clause. Not all consumers are as forgetful or as daft as they would like us to be! No one should just renew car insurance without at least spending an hour or so on some websites to compare quotes.
Companies should not be allowed to hide these anti-consumer clause in their contracts. People are really going to lose money over this.
.All we need now is someone to champion this cause. Know anyone?
My insurance company Atlas Direct informed me that my travel insurance was due for renewal and that they would use last year’s credit card details for this year’s payment. I was unaware that I had agreed to this. Before phoning to complain I happened to look at their website but no policy seemed to match the price quoted in the letter. When I spoke to them they insisted I had agreed to a renewal (in the small print I guess). The price difference was because apparently renewing your policy online will always be cheaper than letting them do it for you automatically. Proof that any consumer should never renew insurance in this way and yet it is clearly the industry’s new preferred method. My travel plans vary from year to year and I won't be travelling for a few months,yet Atlas would love me to pay for them. Infact, unless you are a very frequent traveller or always go away the same weeks every year it is unlikely you will need the same renewal date. Renew from the date you are next travelling. You could probably cover every holiday for the next 4 years with only paying 3 annual insurances.
My last car insurance company did at least inform me verbally that by taking my premium they would do so automatically the following year. When I asked why, it was apparently because they are concerned we are all so busy we might inadvertently drive uninsured. Touching isn’t it! That gave me the opportunity to say no and he removed the clause. Not all consumers are as forgetful or as daft as they would like us to be! No one should just renew car insurance without at least spending an hour or so on some websites to compare quotes.
Companies should not be allowed to hide these anti-consumer clause in their contracts. People are really going to lose money over this.
- The quotes are uncompetitive.
- The renewal may not be required immediately.
- If you leave sorting your insurance to close to the renewal date,which you can using the internet , you may find the last banking day before that date has passed and they have renewed your insurance already.
.All we need now is someone to champion this cause. Know anyone?
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It would make it very clear on the renewal letter they sent you. It will also state that they will auto-renew on their website when you take out the policy. Problem is, most people don't bother to read either of these.0
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This seems to be a more recent development in the insurance industry.
If you call 20 years recent.
That may suit the insurance company but it is not in the consumer’s interest. I have the proof.
With around 2/3rds of people renewing with the same company, it suits the majority of people as well as the insurer.
All we need now is someone to champion this cause. Know anyone?
Perhaps someone should champion the cause to get people to read their renewal letters when they arrive. They clearly state what to do next.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
With around 2/3rds of people renewing with the same company, it suits the majority of people as well as the insurer.
i would politely suggest that maybe this "high percentage" is largely due to automatic renewing, rather than the other way around.
to think that you are no to some extent identifying the cause rather than the consequence i naieve in the extreme;)0 -
JonBoy_SCFC wrote: »i would politely suggest that maybe this "high percentage" is largely due to automatic renewing, rather than the other way around
No, not really. Even without automatic renewals around 60% of policies renew.0 -
i would politely suggest that maybe this "high percentage" is largely due to automatic renewing, rather than the other way around.
I don't agree with you.
Don't know your age but I've been around a few decades and I can assure that prior to automatic renewal, most people would just renew with the same company rather than shop around.
You might be suprised by this if you used to shopping around but it's simply apathy.
If people can't be bothered to change mortgage to save a few grand then I can assure you there are lots of people who are either not knowledgeable, not bothered, disinclined or simply too busy to shop around (that goes for things generally not just insurance).
It's quite simple really.
If you don't want an auto renewal polciy then don't get one (they DO exist because I've had them).
If your chosen company does do it, then simply get a spreadsheet or diary and put your dates in. It really isn't difficult once you are aware of it.
I put all my MOT, insurance and important dates together in one place - it's not rocket science.0 -
For every person that complains about auto-renewal there must be 5 people that are glad that their insurer auto-renewed because they forgot about it.
It's easy to avoid auto-renewal - call them up and tell them. Or use a credit/debit card which expires before renewal. When I signed up my house insurance with LV the agent told me that because my debit card expired before the renewal of the policy then auto-renewal would not occur and the onus would be on me to ensure I was covered.The man without a signature.0 -
If you call 20 years recent.
With around 2/3rds of people renewing with the same company, it suits the majority of people as well as the insurer.
Perhaps someone should champion the cause to get people to read their renewal letters when they arrive. They clearly state what to do next.
Come now. Lets not let the facts or reality get in the way of a good insurer bashing!
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My insurance company are paying out after the theft of my motorbike. Will they still automatically renew my policy do you reckon?0
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JonBoy_SCFC wrote: »to think that you are no to some extent identifying the cause rather than the consequence i naieve in the extreme;)
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