Automatic insurance renewals- end this scam now!

Debsbp

Like the lady described previously, my boyfriend was sent a renewal quote which was a lot more than he thought so informed them that he didnt want to renew, cancelled the direct debits for the new period & obtained insurance with another company. The original company has now been chasing for the money for the renewal. He has contacted them several times, they have asked to see his new insurance certificate, which he provided, but still they are chasing for this money. They have now gone so far as to get a debt collection company invloved. He contacted them, who said they understood & would try to sort it out with the insurance company if he sent all the details to them. He did this, but unfortunately it seems the insurance company is still adamant they want the money for goods he has never had off them. The debt collection company has now sent him a letter stating they will have to resort to coming to our house to claim back this money in whatever way they can.

I know they are doing this, but legally, can they? What rights do we have?

sheks_2

I agree that you should be asked to renew your car insurance. I think anything like this is simply companies trying to get unaware or dare i say it slightly less organised people (myself) paying out money.

A lot of car insurance companies also have a lot of hidden costs for cancellation of insurance.

Have a goosey at this article for more information.

http://www.noclaimsdiscount.co.uk/news/art_display.php?show=200812061

BruceyBonus

sheks wrote: »

A lot of car insurance companies also have a lot of hidden costs for cancellation of insurance.

Have a goosey at this article for more information.

http://www.noclaimsdiscount.co.uk/news/art_display.php?show=200812061

Cancellation fees are not hidden - again people don't read them/listen. When I worked in Sales for an insurance company, I used to tell every customer (as we were required to do) what the cancellation rights and charges were. I think that about 90% of people I spoke to would not be able to remember the cancellation charge immediately after the call as most people didn't seem very interested in listening - they just wanted the policy setup ASAP.

Debsbp

We have both paid cancellation fees in the past so know about these. This was just a case of us not wanting to renew with them & so going elsewhere at the end of the term-I just can't understand why theyre hounding us for the money! They were informed that the renewal wasnt wanted & we complied with all their other requests after the initial letters from them but still they want the money. Money for something we havent had! If we have had an accident we wouldnt have been claiming off them, we would have been claiming off our new insurance company.
Maybe if they didnt hike up the renewal prices so much people may not want to move to another insurer.
Put it this way, we are now having to avoid a visit by whatever muscle they are now going to send round

LilacPixie

My fathers renewal came through today dated 2nd . It is due to be auto renewed 23rd of this month. Premium has increase by £74 with no claims or changes.

I did a quick comparison for him (not internet savvy) and he can get cheaper elsewhere so he phoned to cancel. He actually queried why the increase in price and the reason Cited was he turned 60 in December so is now in a higher risk bracket??. Anyway during the course of the conversation the 'agent' said that as the policy is an auto renewal he has to inform them 14 days before renewal date that he would not be taking the policy or they would debit his card for the full amount as it takes 14 days to cancel such an instruction.

I don't object to auto renewals but I do think that sending a renewal quote out 3 weeks before renewal date when you need to inform them you won't be requiring renewal with at least 2 weeks notice is sneaky. It was the post office if anyone wants to know

lisyloo

but legally, can they?

How did you cancel?
Do you have any proof of recept? e.g. phone call times, dates, names? written acknowledgement, email receipts, email acknowledgment or recorded delivery receipt

What rights do we have?

You can dispute the debt but how successful you will be will depend on what proof you have as currently it's your word against theirs.

How did you cancel?
What did you do to ensure your instructions were received?
What did you do to provide proof that they received your instructions?

alibongo42

laurelchampion wrote: »

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.

Slightly OT, but what is suggested above isn't a great idea, as then you won't have cancellation cover for future trips. To be safe you'd need to renew from the date you actually book your next trip.

lisyloo

Correct - you need cover from booking not just travelling.
For example - a member of the party could get hit by a bus after walking out of the travel agents having just booked the trip.
It's en exaggerated example - but you get the idea hopefully. Illness, death etc. can happen before travel.

Of course if you have periods where you have nothing booked then you don't need insurance.

**woody123**

What advice would you people give someone who is in receipt of a renewal notice from their insurer and it states that the insurance will continue if you do not call them.

Obviously you would call them and say you didn't want to renew and you could cancel direct debits, but are there any other things that someone could do to get confirmation that the policy is cancelled when they inform their insurer they are going to insure elsewhere.

I will be in this position in a few weeks as i am insured with Privilege and i am sure that they auto-renew.

BTW - I don't think its a scam and for some people it can be a very useful practice.

dunstonh

woody, you have all the bases covered on what you should do.

It is that simple. You do what the letter tells you to do.

from higher up....
I know they are doing this, but legally, can they? What rights do we have?

Cancelling the direct debit mandate does not cancel the contract. It just stops that method of payment. In the list of things he did, you didnt mention that he cancelled it with the provider.