Automatic renewal charge

rejimbo999

Morning all,

I've searched on this topic and haven't managed to find a definitive answer so would appreciate any input anyone has.

I took out a motorbike insurance policy with dial direct in april of last year, unaware of the policy of automatic renewal as all of my previous insurance providers have not automatically renewed.
I sold the bike in october and called to cancel the policy and, in my mind, this ended the insurance. I was unaware that the company was waiting on confirmation of this for some reason and did not cancel the policy.

When it came to this april the insurance was automatically renewed, with no letter warning me of this fact, and i subsequently cancelled immediately upon receiving the new insurance certificate.

Due to the post taking a few days between them sending the certificate and me sending it back, I effectively used 7days of policy in their eyes which is understandable, but does the 14 day cooling off period not apply for renewals?

They are now asking for payment of £57 for; 7 day insurance period, cancellation fee and automatic renewal fee. I would appreciate knowing where I stand in terms of owing them this money.

My main problem with this is they renewed without my express permission, and have admitted on the phone today to me that they knew I no longer owned the bike since last october but were still willing to renew my policy in april, which effectively means I am guilty of some kind of fraud?

Thank you in advance for any input

dunstonh

but does the 14 day cooling off period not apply for renewals?

It never used to but it does now. However, they are entitled to charge for cover and work done as long as those charges are documented.

Auto renewal means you should have been sent the renewal notice before the renewal date as normal and the letter would have said it would have renewed. They do have your permission if you dont tell them you dont want to renew.

financequest

Re auto insurance renewal, I am in same situation, bike insurance due for renewal 13 days from now. After receiving renewal quote far higher than expected, despite fact that I have earned a further years no claim, I rang Bennets over 21 days from renewal, to inform them that I will not be renewing, however, I suspect that they will simply go ahead anyways, and claim that I never called them. What a scam, how do you frustrate these thieves ?. A registered post letter I believe will be ignored !. It seems that once they have your credit card/bank detail, they can rob you blind !, the onus is on you to prove otherwise ???

dunstonh

however, I suspect that they will simply go ahead anyways, and claim that I never called them. What a scam

So, you are jumping to the assumption that they will ignore your instructions and renew and calling it a scam despite it not happening.

how do you frustrate these thieves ?

Making all sorts of accusations like that is stupid when it hasnt happened. If it happens, then have a whinge.

financequest

To Dunstonh, if you had taken the time to do an extensive web search re this practice, you, like I would have discovered that this problem is on the increase. You suggest that we trust insurance companies to be fair, reality is that they will get you any way they can. By the way, is your motor vehicle insurance auto renew ?, or do you happen to work for an insurance company.

noh

financequest wrote: »

To Dunstonh, if you had taken the time to do an extensive web search re this practice, you, like I would have discovered that this problem is on the increase. You suggest that we trust insurance companies to be fair, reality is that they will get you any way they can. By the way, is your motor vehicle insurance auto renew ?, or do you happen to work for an insurance company.

My reality is that whenever an an insurance policy is due to be auto renewed I receive a letter about 30 days before informing me of this. On the ocassions when I don't wish to renew I have phoned the company and informed them and the policy has not been renewed.

Can you point me to a post where it has been stated that an insurance company failed to carry out the policy holders instructions not to renew the policy?

dunstonh

To Dunstonh, if you had taken the time to do an extensive web search re this practice, you, like I would have discovered that this problem is on the increase.

Web is no indication. The vast majority never have a problem. Those that do post about it.

You suggest that we trust insurance companies to be fair, reality is that they will get you any way they can.

If you take some common sense steps then you protect yourself in the minority of occasions that they get something wrong.

By the way, is your motor vehicle insurance auto renew ?

yes it is.

or do you happen to work for an insurance company.

no I dont.

shelly

financequest wrote: »

To Dunstonh, if you had taken the time to do an extensive web search re this practice, you, like I would have discovered that this problem is on the increase. You suggest that we trust insurance companies to be fair, reality is that they will get you any way they can. By the way, is your motor vehicle insurance auto renew ?, or do you happen to work for an insurance company.

Like Dunstonh says, the vast majority of policy holders have no problem cancelling an auto renewal, you only hear about those that do.

We have 2 cars and a bike that all auto renew. When we call the co to tell them we won't be renewing due to getting a better policy elsewhere they either match the quote/policy or they cancel the renewal.
We have never had a problem with companies taking money after a renewal has been cancelled.