Automatic Car Insurance renewal

bluenitsuj

Hi,

Where do we stand in Law regarding automatic renewal. I am in my 4th month of a second year with Hastings Direct. I have found a cheaper quote on a comparison site so rang to cancel. I was told I would have to pay £126 to cancel as I would be breaking the contract.
I never signed a contract as it was an automatic renewal so where do I stand on this, should I ask them to provide a copy of my signature to the current years insurance.

All help will be greatly appreciated.

lisyloo

The likelihood is that you did agree to auto-renewal and agreed to the cancellation charges.
I say that because it's absolutely standard these days.

You can certainly ask them to show you where the relevant terms are.
But as you are now in your 16th month, it doesn't sound very credible that you never agreed to anything at all.
So it's very likely indeed that you did "agree" even if you didn't explicitly read the entire policy.

shelly

2 years ago when you bought your first policy you would have ticked a box to say you agree to the t&c's. In there some where it would have said that you agree to auto renewals.
Also on subsequent renewal notices it would have said something along the lines of "If this quote is satisfactory you don't need to do anything. We will automatically renew your policy"
So by keeping quiet you have agreed to that.


In all honesty, the time to shop around for cheaper quotes is before you renew, not 4 months later.

Sorry its not what you want to hear.

dunstonh

All your renewal letters say what to do next if you do or dont want to renew. Choosing to ignore what to do is your choice and you face the responsibility with that.

Auto renewal is legal and fair.

There is no requirement for a signature on car insurance contracts and many other general insurance contracts. The acceptance of the documentation sent to you is considered sufficient.

bluenitsuj

Thankyou for your replies.

The answers were just what I thought they would be. The reason I was looking for quotes 4 months into the year is because I did not know about the cancellation charges. I will certainly change insurer when this one runs out.

dunstonh

Many general insurance policies are annual. The fact you may choose to pay them monthly doesnt change that. Hence the charges mid term. It would be unusual to find a better deal switching mid term after costs (apart from perhaps change of car or location).