Car insurance automatic renewal - is it legal?

olly300

southerly wrote: »

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.

As soon as you decide to stay with them then send a recorded delivery letter to their complaints address stating that you don't want to auto-renew and pointing out this year's discrepancy, keeping a copy of all paperwork.

However you will need to be proactive for your next renewal as you won't have any insurance after the renewal date. (If they do muck up you can have some fun with them. )

It's the first time I'm staying with my current insurer. The only cheaper quotes I got had bigger excesses. Though I'm not on a auto-renewal policy.

newbie007_2

My AA insurance renewal papers arrived and they do auto renewal. They quoted me £380 TPFT for a 1.3 yaris, Done online comparison and got £330 Comp + £43 quidco from Hasting group. Needless to say I phoned them and cancelled renewal, my card has already been cancelled incase the do a sneaky one.

Quote

Did the AA offer to look into comprehensive cover?

newbie007_2

Quote wrote: »

Did the AA offer to look into comprehensive cover?

I told them I'm willing to stay with them provided they matched or better my quote, CS person say it will cost more than the TPFT quote.

hbnmdm

my dad is having trouble with Hastings. They sent the renewal letter shortly before the renewal date, then a renewal certificate arrived with a letter that stated if you do not want to continue with the policy please return the document. He posted it back and cancelled his DD. Hastings then contacted him to ask why he had returned the certificate...he phoned them and informed them that as requested he had returned the certificate as he no longer wished to be insured by them. This was within the 14 days cool off too.

The now want 3 months premium off him as they say he was insured by them (he also has alternate insurance).

As Hastings has asked in their letter for the certificate back if he no longer required insurance and have acknowledged they received it within the appropriate time are they just trying it on?

mikey72

Very common now.
It's the latest sharp practice.
Report them to the FSA for not following the correcet guidelines.

olly300

hbnmdm wrote: »

my dad is having trouble with Hastings. They sent the renewal letter shortly before the renewal date, then a renewal certificate arrived with a letter that stated if you do not want to continue with the policy please return the document. He posted it back and cancelled his DD. Hastings then contacted him to ask why he had returned the certificate...he phoned them and informed them that as requested he had returned the certificate as he no longer wished to be insured by them. This was within the 14 days cool off too.

The now want 3 months premium off him as they say he was insured by them (he also has alternate insurance).

As Hastings has asked in their letter for the certificate back if he no longer required insurance and have acknowledged they received it within the appropriate time are they just trying it on?

1. Write a complaint letter to them with the title "Formal Complaint". In the letter:
a. state that the purpose is to formalise the complaint made on the date of the phone call and put the date of the phone call in it.
b. state that if they continue to chase him for the money he will take further action.

The letter must be sent to them by recorded delivery. The address to send it to is in the policy booklets Terms and Conditions.

2. If they do chase him, refuse to cancel the charge or if 8 weeks from the date of the phone call goes past and they don't reply, report them to the FOS using a complaint form - http://www.financial-ombudsman.org.uk/consumer/complaints.htm

3. This is important also report them to the FSA regardless of what the outcome of the complaint is even if they agree that he doesn't owe them the money - http://www.fsa.gov.uk/Pages/about/complaints/contact/form/index.shtml

Insurance companies will continue to pull stunts like this i.e. delaying mailings, until a few of them are investigated by the FSA.

hbnmdm

Olly3000 - followed your advice to the letter and case has now been dropped. Customer Service manager contacted my dad having listened to his call with the advisor and she was full of apologies! Thanks :beer:

newbie007_2

Good on you above ^^^.

Olly v good post, absolutely correct. They will continue to pull any stunts they can to get money.