Car insurance automatic renewal - is it legal?

deutsch

Quote wrote: »

What's wrong with auto-renewal? Someone remind me.

The benefit of auto-renewal? In case you forget to renew? What's so bad about forgeting? Driving without insurance? Then maybe an accident? It happens! Apart from that, yeah it favours the insurance companies.

olly300

mikey72 wrote: »

But can they charge you the £50 or whatever to cancel, or insist on using their "short term" rates, or some other sneaky fee?
If it wasn't a full, complete, everything I'd paid refund, I'd still take a punt on the £25 it would cost me to use moneyclaim online, if I could get the same insurance not on auto renew off the same company for usually about half the price. That's the bit that annoys me.

If you can prove that you asked them not to auto-renew in good time i.e. you transcribed your telephone recording (if they deny it point out you have the recording ) , sent them a letter by recorded sign for - then no they can't.

Personally I would drag them through the two regulators rather then take them to court as it's more hassle for you to use a MCO. (For example the defendant moving to a different court, judgements being set aside for different reasons, having to chase the money up if you win, etc.)

It costs them approximately £500 if your case is taken on by the FOS but is currently free for you, and they also don't seem to like having the FSA look at their T&Cs of business.

If it did look like you were going to take them to FOS they would refund you quickly however they wouldn't change their T&Cs so complaining to the FSA after they refunded you means they would change their T&Cs.

darich

deutsch wrote: »

The benefit of auto-renewal? In case you forget to renew? What's so bad about forgeting? Driving without insurance? Then maybe an accident? It happens! Apart from that, yeah it favours the insurance companies.

Exactly.

There was a thread a while back where the OP was in a world of trouble due to his insurance not auto renewing and he thought it did. I can't remember the specifics or find the thread but if I remember correctly he was being chased for a huge bill that wold otherwise have been covered by insurance. I think he also got points for not having insurance.

mikey72

darich wrote: »

Exactly.

There was a thread a while back where the OP was in a world of trouble due to his insurance not auto renewing and he thought it did. I can't remember the specifics or find the thread but if I remember correctly he was being chased for a huge bill that wold otherwise have been covered by insurance. I think he also got points for not having insurance.

You mean the thread where the customer thought he was on auto renew, so didn't check at renewal time, the insurance company didn't renew, then washed their hands of him.
It seems the worst of both worlds really.
If it was banned outright it would be clear cut, you know you wouldn't be ripped off, and you know you could sort it out each year and make sure you're covered. Having a system solely at the whim of the insurers is ludricrous.

dunstonh

You mean the thread where the customer thought he was on auto renew, so didn't check at renewal time, the insurance company didn't renew, then washed their hands of him.
It seems the worst of both worlds really.

You mean the thread where the person didnt read their renewal letter and made an assumption? In which case it doesnt really matter whether it was auto renewal or not. The fault was the person didnt read their renewal letter. Exactly the same problem as those with auto renew that dont read and then whinge.

If it was banned outright it would be clear cut, you know you wouldn't be ripped off, and you know you could sort it out each year and make sure you're covered. Having a system solely at the whim of the insurers is ludricrous.

Or you made it compulsary with all. Again, doesnt matter which. Given the majority of people renew with the same insurer each year, autorenewal makes more sense (still dont like it but if you have to pick a compulsary method then its better to go with the majority).

mikey72

dunstonh wrote: »

You mean the thread where the person didnt read their renewal letter and made an assumption? In which case it doesnt really matter whether it was auto renewal or not. The fault was the person didnt read their renewal letter. Exactly the same problem as those with auto renew that dont read and then whinge.



Or you made it compulsary with all. Again, doesnt matter which. Given the majority of people renew with the same insurer each year, autorenewal makes more sense (still dont like it but if you have to pick a compulsary method then its better to go with the majority).

You'll have to post that link up, it's probably not the one darich is referring to. I don't know who the majority is, or really care, but the more customers that realise they are being ripped off for being loyal each year, and then move insurers anually, the better.

Evilm

EdGasket wrote: »

I have another question. If my credit card is renewed during the year (same card company, same card number but different 3-digit security code and expiry date) and I don't tell my insurer of the new card details, would they still be able to auto-renew and charge my credit card based on the previous card's details?

Yes, it would go through. It counts as a Continuous Payment Authority and the only way you could stop that from going through is to report the card as stolen. I think then CPA's may bounce and not work.

Otherwise you are classed as having agreed to it so the payment would still work even if the card had been renewed and had different numbers.

southerly

A few years ago I had insurance with Budget, I didn't realise they would auto renewal until they sent the new policy. As it turned out my debit card had been renewed so the number had changed, and the payment did not go through.

They cancelled the policy, and sent letters saying I owed them a cancellation fee which was unreasonably high, about £80, and even a letter saying someone would try and visit my home, this never happened and they gave up in the end. Can't remember now if I had stopped using the car or had other insurance cover.

Used Barclays insurance last year, and I thought I had read everything and they didn't use auto renewal, but I was wrong! Just had a new policy through, with a letter dated after the renewal date, and no letter received prior to that! I may cancel as the fee is only £15, and have found a £50 cheaper quote, albeit with higher excesses.

olly300

southerly wrote: »

Used Barclays insurance last year, and I thought I had read everything and they didn't use auto renewal, but I was wrong! Just had a new policy through, with a letter dated after the renewal date, and no letter received prior to that! I may cancel as the fee is only £15, and have found a £50 cheaper quote, albeit with higher excesses.

With the bad weather this year/next year it's probably not money saving to have bigger excesses.

southerly

Yes I am unsure whether to cancel, as their renewal charges are fair, I have got quotes that are about the same, only the AA is £50 less. Also until I phone them, I don't know how much they will charge for the weeks cover I have already had, probably would not save much in the end, and would have the higher excesses. I am just so annoyed with the way it has been done, with no renewal letter sent, I certainly would never use them again. I thought it was a tactic used by the more cheap and nasty end of the market (eg Budget), not more reputable companies, but maybe it is becoming industry standard.