Budget Insurance BEWARE OF AUTO RENEWAL

perine

Please be aware that if you insure via Budget they will automatically take cash to renew from the payment card you used to instigate the insurance, unless you cancel the auto renewal before the renewal date. Read the small print of the policy document, it's in there that they will do this. This has happened to me and the increase was enormous i.e. 1st year was £145.82 automatic renewal at 2nd year £235.41 a massive increase. I never received a renewal notice via e-mail or post, they just did it. When I realised and complained, they did readjust, supposedly to a different insurer for £160.13, and gave me a promise to repay the difference back to my credit card. As the insurance had started 3 days ago, I was told I had no choice but to accept the change and pay 3 days at the expensive rate. When I checked my file the "new"insurer, MMA, is the same as last year. Strange how the price went up and then came down eh?

PERINE

savemoney

I am with them and I know it was mentioned to me somewhere

My insurance hasnt gone down much since last year but then when I went with them last year I saved over £150

Freddie_Snowbits

Most insurance companies auto renew, especially with car insurance and you do not have to be online to do this. Failure to pay by the 14th day would invalidate thepolicy and any claim. The reason for this is to keep you legal on the road.I beleive you have 14 days to change around if you want to change, though your new cover, if you change, will start from the time you would have renewed.

You cannot change though, I believe, if you have had an accident in this 14 day period

Mk14:37

This is not unique to Budget, any company would do this - Co-Op sent me a letter with large print stating that I DON'T HAVE TO DO A THING... they would take all the hassle away and simply renew my insurance. Interestingly, despite one more year's no claims, the premium had increased substantially. You really must shop around and change every year.

jamesmason

I have recently had a similar experience with Budget, who where my car insurers last year. Having received no invitation to renew and having done the customary price comparison checks prior to the renewal date, I went with another company this year.

A few days later, on checking my bank statement was alarmed to find that Budget had taken another years premium out of my account. I rang straight away and was told that they could cancel the policy, of course, but that I would be charged pro-rata for the two days of the new policy - (An amount of only a couple of quid), but would also have to pay an 'Administration fee' of £38. All of this was dependent on sending a copy of my new cover note.

To my intense chagrin I was told that I must have received a renewal invitation, because they had sent on by post (I did not) and that I had agreed to these terms, which where in the small print of my policy. I took the usual minimum details of time, date, agent details etc and then took advice. My findings where thus:-

Firstly, the Consumer Credit Act gives a 'Cooling off' period for services, so cancellation will never be contested.

Secondly there are some quite strong guidelines in relation to automatic renewals which state that such a stipulation should not be hidden in the small print of your previous policy and should be openly explained, so that you know what you are getting.

Thirdly, I am given to understand that there are a number of complaints of similar sharp practice being looked at by trading Standards at the moment.

I wrote a letter laying the above out and stating in no uncertain terms that I would actively engage through the complaints process, if my money was not refunded in full, (minus the pro-rata insurance charge, which I thought was fair). I phoned them yesterday and they have given me an assurance that the money will be refunded to my account on Monday complete with the threatened 'Administration fee'.

Hope this post is of help to anyone else who finds themselves in similar circumstances.

junkmayle

Budget did this to me too, even after I wrote and said NOT to autorenew. Just get your credit card company to issue a chargeback due to unauthorised transaction. Worked for me.

dellismorgan

this Budget Insurance automatic renewal con has just happened to me, As far as I was concerned my contract for car insurance finished with them at the end of the 12 month period as set out on the certificate of insurance. When this finished I went online got another quote from all the usual suspects , as per M.L. instructions, and then paid for the new insurance,
a month later the letters started to arrive from Budget demanding payment.
I have just come off the phone, spoke to several people,they are going to hand my debt to a collection agent!!!!
I have insurance policies on several vehicles and properties and in all the years I have never had anything like this
Can you guess who I WON'T BE USING AGAIN