Small print,how can Insurance companies renew premiums without authority!

ajgoodun

Twice now, I have come across Insurance companies automatically renewing policies and take the payment from the card used to pay 1 year earlier, even when that card is not owned by the insured.
The first was Bennetts motorbike insurance, which claimed it was totally legal and in the small print. The next was Budget and not only did they automatically renew the policy and taking the money, to get to the cancellation department takes a lifetime on a premium rate line.
Comments please

dunstonh

The fact is that they do have authority and continuous payment agreements are common in many areas of business and are lawful and accepted by the FSA (many of its own rules are not law but companies go by them).

If you dont use a broker or dont do your own research then its your own fault if you dont pick things up in the "small print". If you want to a broker and told them you didnt want automatic renewal then they would research and recommend on that basis. If you DIY then its your job to choose.

shelly

ajgoodun wrote: »

The first was Bennetts motorbike insurance, which claimed it was totally legal and in the small print.

With Bennetts it's not even in the small print. Having just looked at an old (expired Jul 09) ins cert from them it's on the back of the cert in the same size text as the Endorsements.

If you read nothing else you should read the ins cert to make sure all info is correct.

lisyloo

It's quite normal, common and lawful.
If you do your own insurance it's your responsibility to read the contract. You take that responsibility when you chose not to use a professional who would know about these things.

You should also get a renewal notice which is very clear about this, so you also need to read your post.

Evilm

They tell you on the renewal notice around 3-4 weeks in advance. They put it in their T&Cs which you agree to by taking out the policy the first year.

LeeSouthEast

My Direct Line renewal (arriving 6 weeks before renewal was due) quite clearly said (to the effect of) "If you are happy with your quote, you need do nothing. We will collect payment on xx/xx/xx. If you wish to discuss, please call."

It's also in the 'small print'. Just because it's small doesn't mean you shouldn't read it... but in all prior cases it's also been in about size 32 font on the renewal notice!

magpiecottage

ajgoodun wrote: »

to get to the cancellation department takes a lifetime on a premium rate line.

That will almost certainly be a breach of the FSA Principle 6, which requires firms to treat customers fairly - so if you are simply trying to stop them renewing you can raise it as a complaint when you get through.

They would then have to put it through their complaints procedure.

foggytown

Please don't get the impression that your failure to use a broker automatically relegates you to the "ain't I the dumb one" class. In four decades I have come across enough clueless, incompetent or negligent brokers (and had to remove some) to know that the use of "professionals" isn't always the solution. It isn't so much the use of a broker per se, but the difficulty in finding a GOOD one.

Your own vigilance should be your first line of defence. Read what the insurer sends you. If you don't understand something, call them for clarification. Like many other aspects of modern life, insurers as a whole need to be treated with caution and suspicion. It's a sad state of affairs.

ajgoodun

In my defense the insurance was taken out, on behalf of my 18 year old son and I was not aware of the renewal. Well not until the money was taken out of my account.

Skintmama

Bad luck OP, it is a shame that all documentation and communication goes to the policyholder, rather than the person paying in this instance.

Having today arranged and paid for insurance for my 19yr old daughter, I have just made a note in my diary to make sure I get sight of that renewal document next year! She should be paying for the insurance herself next time, so I really don't want to find that I have paid again.

lisyloo

and I was not aware of the renewal

Probably a good idea to make yourself aware in future then !!

Sorry but you really have come to the wrong place if you wanted sympathy.
You have to take responsibility when you hand over your authorisation.