Automatic Renewal and Bell Car Insurance

olly300

I took out a car insurance policy with Bell Car Insurance several months ago.

I noticed that it had clauses in the small print about automatic renewal which were not fair and not very clear.

The two concerns I had were over the fact that that they "may" decide to contact the policy holder to tell them that the insurance is automatically renewed.

Many people on this forum have posted about being caught out by this as firms have decided not to send out these letters in the post.

And where you have decided to not auto-renew, you have told them and they have still done it for you, you have to provide details of your alternative insurance cover to get a full refund.

As far as I'm concerned this is not something they need to know as it's collecting an excessive amount of data on someone, and due to the delay that often occurs in getting insurance policy documents it delays a customer getting a refund.

I subsequently complained to the firm, and then copied my letter in an email to the FSA due to their delay in answering my letter.

The FSA has got Bell Insurance to agree to change the wording on the policy booklet so now:
1. They will definitely inform you within 21 days if your insurance is up for renewal before automatically renewing it.

2. If you subsequently cancel the automatic renewal and are automatic renewed you won't have to provide proof of alternative insurance. You will still however have to return the certificate of Motor Insurance before getting a full refund.

However the best thing to do is read your policy before you take it out. If you don't want to automatically renewal then tell them in writing asap. Not by telephone
because unfortunately many companies in all sectors are now in the habit of denying they received such calls if a problem occurs.

If you don't hear from the firm within a month confirming that they won't auto-renewal your policy, send another letter to their complaints department with the title "Formal Complaint" by recorded delivery.

lisyloo

Well done Olly for getting things changed.

I personally put all possible renewals in a spreadsheet so that I only have to look at one reference e.g. car tax, MOT, services, insurance, breakdown recovery, bonus savings accounts that need switching etc.
That was I can be pro-active and check beforehand.
If I don't know I check.
I find being pro-active removes the hassle of getting refunds after the event and takes little effort.

But well done, for actually doing something about it.

mlacey99

I naively thought insurance policies lasted for one year. However I now find myself being threatened by Bell to cough up £90 for cover which automatically renewed in January on a car that I scrapped last September. They weren't able to take the money from my accout as my card details had changed so they have now sent me a bill instead. Cheeky !!!!!!s, if anything they owe me money as I let the policy run so as not to affect my NCB!

I told them they can sing for it and expect them to drop it at collection stage but perhaps that's me being naive again, but I really resent this underhand method of gouging mony out of customers. Obviously this automatic renewal scam was in the small print but it should surely be made clearer.

dunstonh

Cheeky !!!!!!s

Not really. You failed to read your renewal notice, which thanks to olly, is quite clear on what to do next.

but I really resent this underhand method of gouging mony out of customers

I'm not sure that telling people in advance what happens next isn't underhand.

Obviously this automatic renewal scam was in the small print but it should surely be made clearer.

It is very clear. In the renewal letter you were sent, it would have a section on what to do next if you dont want to renew and what to do if you do.

Unfortunately, your decision not to read that is not really the fault of the insurer.

mlacey99

You are absolutely correct - I didn't read the renewal notice properly (at all in fact). This is because I had no concept such a thing existed and simply ignored itassuming it was sales bumph. I had a new car and a new insurance policy by then.

I do resent companies not being clear enough up front when including features such as automatic renewal and susequently chasing me for money for a vehicle I have advised them is no more.

A lesson learned on my part for sure, but still believe their approach is unfair.

ariba10

I believe "Tesco" have the same system with their house insurance.

MouseTrap

I've just discovered that Bell auto-renewed my car insurance to the tune of £1,200 - they did NOT send me a notice of renewal by post or email and I already have alternate insurance with another provider for around £550. I actually feel sick that they can take that sort of money out of my account without any notice. I didn't even know they had access to do that, I thought my one-off payment last year was just that a ONE OFF.

cajef

MouseTrap wrote: »

I thought my one-off payment last year was just that a ONE OFF.

So you didn't read the terms and conditions when you received the policy documents.

dunstonh

they did NOT send me a notice of renewal by post or email and I already have alternate insurance with another provider for around £550.

How did you know what price you had to beat if you did not get a renewal notice? What prompted you to buy a new policy? Where is your proof of no claims?

henryscat

I've just been caught out by auto-renew by Axa on home insurance - no letter, no email, just the bill! Am in the process of trying to cancel as I bought insurance elsewhere.....

Not impressed