Automatic insurance renewals- end this scam now!

dacouch

If you want evidence that a high proportion of people renew their policy each year, simply look at the discounts companies give "New customers" these are often up to £100 and Insurers profit on a car insurance is a lot less than you all think, most companies struggle to make 8% gross profit on the premium.

If most people did not renew their policy and shopped around each year they would not offer these large discouns to "Obtain" the customer.

I can see the benefits to the customer and obviously insurer of auto renews but I agree it would be best that it was made very very clear to customers that their policy would auto renew

laurelchampion

I would dispute that this clause is very clear. However,it does not alter the fact that automatic renewal is more expensive than simply renewing online with the same company. This is to the insurers benefit not the consumer.

laurelchampion

As an independent financial advisor I am surprised that you could have so completely missed the point of my comments. Lots of people may well renew with the same company but as I proved automatic renewals do not give the most competitive price. It is common sense to spend a short time to look for the best deal when renewing any insurance. Even if you do renew with the same company do so at the online rate not their inflated automatic premium. I stand by my comments.

laurelchampion

If this has been discussed before i apologise but I have poor computer skills and find this site quite difficult to navigate. I took out an annual travel insurance as that particular year I was travelling more than usual and it was the economic thing to do. That does not apply this year. I still do not like authorising one payment on my credit card to a company only for them to draw up a contract that then enables them to take money in subsequent years.

laurelchampion

no . I have never set up a dd or standing order.

dunstonh

As an independent financial advisor I am surprised that you could have so completely missed the point of my comments. Lots of people may well renew with the same company but as I proved automatic renewals do not give the most competitive price.

I never said the renewal was better/worse. I just stated that the majority of people will renew with the same company.

It is common sense to spend a short time to look for the best deal when renewing any insurance. Even if you do renew with the same company do so at the online rate not their inflated automatic premium. I stand by my comments.

Nothing wrong with that.

However, that doesnt make auto-renewal something evil.

raskazz

JonBoy_SCFC wrote: »

i knew it, that's a "no" then!:rotfl: :rotfl: :rotfl:

Unfortunately it is, and if you cannot understand why that is (i.e. the information is not in the public domain and that publishing commercially sensitive data on the internet would get me fired), then you are even more stupid than I originally suspected.

lisyloo

**woody123** wrote: »

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.

Woddy - check my post #29.
Small hassle but will prevent you getting into the same situation as debs where you get chased by debt collectors.
A lot of cancellation request get "lost", so you need some sort of "proof".
There are various options.

If you want to be safe then recorded delivery is good (about 70p) because you get a time and date when the item was delivered which in my view would proabbly convince a county court judge that the letter WAS received.

BruceyBonus

If you call to cancel a renewal, make sure you get hold of the person's name who you speak to (either first and last name or just first name and office location). Also note down the time you called.

lisyloo

either first and last name

hmm.......I don't think first name is good enough.
I've been speaking to John before only to be told later that "we have 74 johns".

Phone is not as secure as recorded delivery so you need to think about whether it's worth 70p or alternatively pester them for confirmation in writing.