Car Insurance

C_Ronaldo

Can anyone tell me if once the first years insurance is up are the insurance company allowed to continue the insurance and take money money from your account if you havent authorised them to do this

MissBehaving

In my experience the insurers send you a letter to say that they years insurance is up on X day and if you do not cancel it, they will continue it.

My previous car insurance was with Tesco and they sent a letter about 20 days before it was due to end. We changed insurers (found somewhere cheaper and better) and had to phone Tesco to cancel.

I think they will continue to run it unless you tell them you dont want it!

Bossyboots

Churchill sent a letter out with my OH's renewal in 2005 stating that unless the insurance was cancelled on renewal in 2006 it would automatically be renewed. When mine came through 6 months later it basically said the opposite and that I wouldn't be covered after the renewal date if I hadn't given them instructions to renew.

Many companies do make the insurance continuous and if you don't cancel it before renewal you could be charged a cancellation fee along with a fee for the days on which they automatically covered you. Some are also asking for proof of insurance renewal with another company before they will cancel their policy.

C_Ronaldo

it hasnt happened to me, it happened to my brother, he wasnt sent a letter re the end of the insurance being soon, thought id ask if the company could take the money without you authorising it

Astaroth

They will have received authority for it but it is either a statement that you have to object to if you buy by phone or is in the information on the website (that most people dont read) as part of the purchasing system. For example on the churchill website where you select to pay by direct debit, next to the option it states:

Churchill_Website wrote:

I would like to pay by monthly instalments (Interest rates applicable) We will securely store your payment details so that we may automatically renew your policy for subsequent years. We will send you advance notice of your renewal and the premium due. Please call us if you do not wish to renew.

They have to make it clear to you that they will be renewing your policy and that they will store your payment details to enable them to do this but the majority of people dont listen (as it is boring legal talk like the FSA statement or Direct Debit garruntee) or dont bother reading what they are clicking to accept. Our website has the legally required important statements page immediately prior to the payment details page and even though there are approximately 10 bullet points with a fair amount of text under each one the average person spends less than 2 seconds on that page (and that includes the time for their computer to receive the page and render it).

pfpf

when the year is up, can you cancel the policy but actually get your new policy from the same company?

i have been really happy with DL and wouldnt want to leave them, but a new online quote with them is going to be substantially cheaper aswell as the cashback options.

thanks alot.