Another new renewal wrinkle

foggytown

Decided to remain with my expiring auto insurer. Their renewal quote wasn't the absolute best but I value continuity over saving a tenner. Unusually, LV doesn't renew online. Gotta call them. So I did and everything was tickety-boo until we came to the payment element. I said I preferred a monthly DD and LV were happy with that - but only if I accepted the auto-renewal feature. When I asked why I was told that because the DD is continuous in nature, the policy had to be auto-renewable. What???? Umm . . . because the banks say so. What???? Well, it's our policy.

Maybe I'm missing something here. Someone enlighten me, please.

lisyloo

It's nothing to do with the banks.
The insurer could chose to take 12 monthly payments if they wanted to.

The insurer are choosing to insist on it because it's in their interests to do so. They can set their pricing policy as they choose.
You have two choices.
Find one that doesn't auto-renew (which might be LV with annual payment).
Or stick a date somewhere and shop around a month before then remember to lapse the policy. It's not hard these days to set email alerts etc.

I generally choose the later as it gives me widest choice and there are lots of other much more important trade-offs IMO.

Some people seem to get quite funny about it, but insurance is a series of trade-offs. There just is no perfect policy.

Quentin

At least they gave you the chance to say no thanks.

A cynic might say that they have a better chance that dd customers will let inertia take over and leave things as they are when renewal time comes round.

Dangermac

foggytown wrote: »

Decided to remain with my expiring auto insurer. Their renewal quote wasn't the absolute best but I value continuity over saving a tenner. Unusually, LV doesn't renew online. Gotta call them. So I did and everything was tickety-boo until we came to the payment element. I said I preferred a monthly DD and LV were happy with that - but only if I accepted the auto-renewal feature. When I asked why I was told that because the DD is continuous in nature, the policy had to be auto-renewable. What???? Umm . . . because the banks say so. What???? Well, it's our policy.

Maybe I'm missing something here. Someone enlighten me, please.

If I read your strapline correctly, you have been in the insurance industry for 42 years.

It may not come as a surprise to you, that different insurance companies tend to have different terms/conditions etc.

I am no great fan of auto renewals, but if that is their terms, then that is their terms. To an extent, Direct Debit policies have mainly been auto-renewal anyway. If the insurer didnt hear to the contrary, the policy would be renewed.

Is it the UK insurance industry that you have worked in for 42 years?

foggytown

Dangermac wrote: »

Is it the UK insurance industry that you have worked in for 42 years?

UK, USA & international.

MrRedundant

That said I believe the government and other authorities such as police, DVLA etc are in favour of autorenewal as it stops all the morons in the country from forgetting their insurance