Insurance Exit Fee's

[Deleted User]

Hi!

Has anyone else been charged an "admin" fee for not renewing their house insurance policy?

dunstonh

You should not be charged for not renewing but you can be charged for cancelling.

It is important to ensure you use the right term as some have been caught up cancelling their plans when they meant to say not renewing. (and therefore suffering a cancellation charge and potentially leaving themselves without cover).

[Deleted User]

dunstonh wrote: »

You should not be charged for not renewing but you can be charged for cancelling.

It is important to ensure you use the right term as some have been caught up cancelling their plans when they meant to say not renewing. (and therefore suffering a cancellation charge and potentially leaving themselves without cover).

My policy is set to expire soon and the charge is for non-renewal.

Apparently the contract states a direct debit will be taken to automatically renew the policy. If I want to stop this I have to give notice and pay an admin fee.

Quentin

You may have misread. Your policy will give the conditions for cancelling your policy, which as already posted will incur a fee.

If you don't want to renew the cover, then you have to inform your insurer of this. (ie don't use the word "cancel", but write and tell them you do not wish to renew, and ask them to confirm receiving your instructions. Send the letter by recorded delivery (and keep a copy).

[Deleted User]

Quentin wrote: »

You may have misread. Your policy will give the conditions for cancelling your policy, which as already posted will incur a fee.

If you don't want to renew the cover, then you have to inform your insurer of this. (ie don't use the word "cancel", but write and tell them you do not wish to renew, and ask them to confirm receiving your instructions. Send the letter by recorded delivery (and keep a copy).

I really didn't misread it...I have it in front of me! lol

This is not to do with CANCELLING a policy - it is an admin fee for not re-newing the policy when the existing one expires.

This was confirmed in a recent telelphone call with the insurance company.

Quentin

Who is the insurance company? (Did they do you a special deal to stay more than 12 months?)

Mr_K

This sounds like the dreaded 'autorenewal' clause that insurance companies love. It will be in the small print somewhere that they will automatically renew your policy and you probably have to give notice if you're not continuing. Nice little profit margin for them from this.

I avoid autorenew if possible. I like to have control and search around each year without worrying that'll they'll autorenew with an inflated premium.

Quentin

The normal autorenewal clause doesn't impose any penalty if you don't want to continue with the policy into a new 12 month term after the current one is completed. (Providing you give your instructions about this prior to the renewal date)

dunstonh

It will be in the small print somewhere that they will automatically renew your policy

You mean the normal print when you get the renewal notice in the section that tells you what to do next if you do or do not wish to renew?

Seeing as most insurers have the letter on a single page or two at most and make it pretty clear what you need to do, the only way you would miss it is if you dont read it. In that case, it wouldnt matter if the text was small, large or in Chinese.

Mr_K

dunstonh wrote: »

You mean the normal print when you get the renewal notice in the section that tells you what to do next if you do or do not wish to renew?

Seeing as most insurers have the letter on a single page or two at most and make it pretty clear what you need to do, the only way you would miss it is if you dont read it. In that case, it wouldnt matter if the text was small, large or in Chinese.

Well, yes, I'd read it and you'd read it but unfortunately a lot of people don't.

dogbot

Op, which insurer is it that is charging this fee? What is the name of the policy also?