Last insurer renewed policy without permission.

steve2k7

Hi,

Posting on behalf of my mother. Last October she renewed her car insurance and she is now covered with Asda. We've been going through her finances because we are in the process of fighting the hefty bank charges that she's been hit with over the years with LLOYDS TSB. When we were looking over her last statement we noticed that AXA Insurance have been taking out £45 each month since last October for car insurance. AXA have renewed her policy without her permission and setup a new direct debit to coincide with the policy renewal that they had originally offered her. So she phoned them up and explained what they had done, they said to her they would have to get in touch with Asda Insurance to confirm that she had taken out a policy with them. My questions is, Why do they need to contact Asda when she never renewed the policy and never received any new documentation from them such as the most obvious thing - the new Certificate of Insurance.? They have renewed the policy without her permission, modified the direct debit, took the money out of her bank illegally and now it looks as if they are blaming her by contacting Asda Insurance. Can anyone advise me on how to advise my mother?

Thanks
Steven

gazza975526570

Most insurances now automatically renew each year unless they are told otherwise

This would include amendments to the DD instructions

I presume when she initially accepted the policy she would have agreed to this

gyzmo

It will be stated in the Terms and conditions. Not reading them will not gain you sympathy from the insurers.

steve2k7

If thats true then why didn't my mother receive a new insurance certificate, a direct debit agreement or one of those monthy payment plans? The woman from AXA never stated that the policy is automatically renewed either...

gazza975526570

Im not sure why she never received a new COI. To have initially began taking the installments she would have iitially received a DD mandate. This would then have continued into the renewed year. You no longer need to physically sign a DD mandate and can be authorised over the phone, tho the first year the policy was effecitive she would have recd confirmation.

Are you sure you woman never advied it would be auto renewed? Did you make the call or your mother? As this is something they will ask - im sre it will be covered in the documents regardless howevew you would have grounds for complaint if not mentioned

steve2k7

From what I understand my mum took out a 3 year insurance contract with AXA four years ago. So it was a fixed price over three years, not entirely sure why she done this but seemed it was the cheapest option at the time. At the end of the three years we got a renewal quote in from AXA and it was over £400 for the year, so we shopped around and managed to get insurance with Asda for £200 - HUGE saving!. Its taken almost a year for my mum to realise that she's been paying two insurance premiums (not the best at managing money, hence my intervention). I'm going to get her to phone them again, what questions should she be asking?

Astaroth

There isnt really anything to ask.

As others have said, almost all insurance policies are now sold on an auto renewal basis which you will normally be told somewhere within all the legal statements the insurance company have to give you, in the policybook and in your renewal invite letter. It is up to you then to actively tell the insurance company that you do not want to accept the quote rather than the other way round.

Why didnt she get a CoI? To be honest I would firstly point out that we are talking about a single piece of post that was sent to her 12 months ago and I know that my memory isnt good enough to say exactly what I got in the post 12 months ago. Secondly, it is possible she threw it away (open or unopened) assuming it was junk mail or of cause everyones favourite company Royal Mail may simply have lost it.

The moral of the story? 1) Read your letters properly 2) Check your bank account regularly

Wyndham

Sorry if I appear unsympathetic - but we work in a society with 'buyer beware' (can't quite remember the latin, but something like caveat emptor?) It is the responsibility of the person buying the product to check it out and make sure it is right.

Consumers have an advantage in that insurance companies are regulated, so your mother would have received a notice that they would automatically renew (probably phrased as 'to make life easier for you, so you don't have to worry about it, we will automatically renew your policy....') I'm not sure it's all morally right, but that's where we are - and as Astoroth says, read letters properly and check your bank account regularly!

Astaroth

Caveat emptor is exactly right

dunstonh

I agree. AXA have done nothing wrong.

Unless you write to cancel the contract, they have no reason to guess that it isnt going to be renewed. If you enter in to a contract, then you have to inform the other party when you want to cease the contract.

regularsaver1

I agree

I also would say that they have been debiting each month from her bank so this would have appeared on her bank statement

they have to check with asda because otherwise they could presume that she is just cancelling and asking for a refund because she has not claimed. by prooving she was insured elsewhere they can understand it was for another reason