Automatic insurance renewals- end this scam now!

dunstonh

Phone them up, log the date and time and the full name.

KTM_Gordo

hullight wrote: »

My insurance company are paying out after the theft of my motorbike. Will they still automatically renew my policy do you reckon?

Probably not, as you don't have a bike to insure any more...

One of my previous car insurers (Elephant, if you're taking notes) automatically renewed my policy despite my express instructions not to. Getting a refund was a protracted process, and they wanted proof of new insurance - what business is it of theirs?!? :mad:

My new motorbike insurer has a similar clause, so I must write to them to tell them not to.

mattymoo

KTM_Gordo wrote: »

they wanted proof of new insurance - what business is it of theirs?!? :mad:

Its a legal thing.
Since they auto renewed they will have issued a one year cert of motor insurance (even though you did not need it). This leaves them wide open to being roped in as "Road Traffic Act Insurer" for the purpose of dealing with claims against you if you later turn out to be uninsured.

RTA insurer is one step away from the MIB - Motor Insurers Bureau. The MIB is a fund of last resort and they will deflect any claim against them to an insurer that has some connection with the vehicle / driver no matter how tenuous.

Once the old insurer has seen evidence of another policy, they know they are in the clear as regards RTA insurance.

slevin

it should be something that you have check a box on the online form to become part of.

i have no wish to have automatic renewal.

lisyloo

it should be something that you have check a box on the online form to become part of.

You noramally do.
It says something along the lines of "I agree to the Terms and conditions" and often provides a link to them.

i have no wish to have automatic renewal.

You've two choices then.
1) Research and get a policy that doesn't do it. This may cost you more as your choice will be severely limited I suspect.
2) Put up with it even though you don't like it in return for a discount on your premium (as you will have much more choice) and put the date in a diary/spreadsheet along with others.

I find with insurance that there are so many factors that you cannot always have everything you want. Sometimes you have to compromise.
But if you really feel very strongly then it's simply - get one that doesn't do it (but it will probably cost you).

KTM_Gordo

Unlike we money-savers, most people don't shop around for insurance come renewal time and are happy to fork out for the renewal (hard to believe, I know ).

As a result, many insurers are complacent with their renewal premiums, and why you should always contact the insurer to ask if it's their best deal - often it isn't.

One year I had renewal notice from my motorbike insurance broker, and after a five minute call I'd reduced the premium, the excess and increased the level of cover. If I'd just signed on the line I'd have been a lot worse off.

This is also why insurers have big advertising campaigns to encourage us to switch - e.g. First Direct guarantees to beat your car insurance renewal by 10%.

Of course there are some situations where your current insurer turns out to be the best option even after a ring-around - particularly if you've made a claim.

But better to renew knowing you're better off than to pay a premium on your premium (as it were) through laziness!

olly300

I've posted on this issue before so I may as well repeat my post in this thread:

There seems to be quite a few threads on auto renewal of insurance policies mostly car but some household policies.

Anyway last month I had renew my car insurance and after hunting around found that the cheapest was with a provider that provided auto renew. Now as I want to have the opportunity to shop around come renewal time I did some brief research into the Unfair Terms in Consumer Contract Regulations and then took out the policy.

Once I got the policy papers I noticed while it stated that they did auto renew in their key facts documentation it didn't state how I could opt-out of it in the small print. So wrote a letter to the insurer sent via recorded delivery with the title "Formal Complaint" to their complaints department.

In the letter I basically stated why their auto renewal was unfair and that if they didn't let me opt-out I would be making a complaint to both the FSA and the financial ombudsman.

The FSA regulate the Unfair Terms in Consumer Contract Regulations 1999 for the financial industry including insurers and their website makes it clear that auto-renew of an insurance policy can be an unfair term. And if you have problems you must first write a complaint letter to the insurer then contact them if there is a problem. More info here: http://www.fsa.gov.uk/Pages/Doing/Re...ir/index.shtml

Anyway the insurer wrote back to me and stated that auto renew is not a condition of taking out the insurance policy and they do this for ease.

There if you do take out insurance and find it is an auto-renew policy write a complaint letter to the insurer telling them you wish to opt-out and state that if they do not let you will be making complaints to both the FSA and the financial ombudsman.

However:
1. If you do this you must be organised and renew your policy in time yourself.
2. Do not complain very near the time the policy reaches it's expiry/renew date as companies can take 12 weeks (3 months) to respond your letter.
3. Keep all paper work and an eye on the method used for payment in case the company does try and take the money out later.

dacouch

That is a very good post Olly300.

Bravo for the Unfair Contracts Law which is a fairly new law and gives customers a bit of clout. About the only decent law the government has brought in recent times.

The internet is such a wonderful thing, I trust you discovered this on the tinernet and now thanks to your thread other will be more aware of this wonderful law and use it to readdress the balance.

Once again well done for your initiative and for sharing it with us:T

thecasementkid

laurelchampion wrote: »

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.

• 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.

If they want these clauses they should make it crystal clear with a separate clause and a box for you to tick. By that box should be a compulsory message stating that the premium will not be the most competitive
.All we need now is someone to champion this cause. Know anyone?

I had an auto renew letter for my House and contants insurance in yesterday. The monthly premium had increased by £14.00. I called to cancel and they immediately offered me a 40% discount which was £7.00 less a month than I was paying last year!! I almost rejected it again because they could have offered it in the first place, but looking online at similar quotes, it was really competitive. Suppose it will be the same battle next year though:D

dkb

This has just happened to me, although my card had expired so they couldn't take the money.

I took insurance out a year ago but 12 months on I hadnt considered it may auto renew. I never got a renewal quote so my memory wasn't jogged. I shopped around and got a very good price from the post office.

Last week I received an insurance certificate and the day after a letter saying the payment had been declined and the insurance would be cancelled and a cancellation fee would be required if no payment (£361.00) was made in the next 7 days.

I phoned them up to be told that my policy had auto renewed. I asked them how can they auto renew when I dont know the price for renewal and was told the renewal quote was sent out in January. I told them this had never arrived and could they prove it was sent. They said could i prove it never arrived. I told them I didnt need to prove it never arrived and they should have sent it recorded to ensure delivery.

Anyway, the long and short of it is that they want £7 for the duration up to the day I phoned them and £20 cancellation fee.

I've told them to send me a bill and I'll see to it thats not paid. Its a matter of principal.

As I never got the renewal quote am I still liable for these charges?