Automatic Renewal Warning! (Sorry, long Winded)

Loguey

[FONT=&quot]I recently moved to another insurance company after having a cheaper quote from gocompare.com. At the time of moving companies I also moved house and this led to some confusion with receiving letters etc. To that end I find myself now in a predicament as when my new insurance company contacted you to receive proof of no-claims you informed them that my policy was still running. [/FONT]
[FONT=&quot]I then rang you and explained the circumstances and I was asked to fax a copy of my new insurance certificate to yourselves in order to prove I had indeed obtained insurance from another provider on the applicable date. I done this and I now receive a letter redirected from my old address stating that I owe you £400.00 plus, as a fee to cancel! I have since also obtained all letters from Kwik Fit insurance reference the renewal etc. Prior to getting these letters I had no idea that my policy would be automatically renewed. I never was told any such thing when I took the policy out in 2009. When I took the policy out I never received any letters at all as the schedule and certificate of insurance was sent via email. [/FONT]
As Kwik Fit have renewed my policy this year without my say so then I do wonder where the new certificate and schedule are as they have never came in the post nor via email. To this end I feel that I have been wronged. I have been told that my insurance was automatically renewed and yet no proof of this arrived by way of documents either electronically or paper. Surely if I was being covered by a policy from you then I should have had documentation to support this? When I do ring up and inform of my shift to another company which is marginally cheaper by approximately £1000.00 I’m told that I now owe you £400.00 plus and if I don’t pay I’ll be chased by debt collection agencies. This is clearly not fair and I feel anyone reading this will agree with me. My new insurance policy is only £650.00 so how on earth is it right for me to pay you £400.00 plus just to cancel.
The advisor on the phone actually said he was surprised by my honesty as normally people ring up and say they rang and cancelled their policy. I feel that honesty is always the best policy but seemingly honesty has got me threatened with debt!


I now receive letters from the debt collectors to pay 500 pounds - Sadness

lisyloo

[FONT=&quot]Yes correct you should have had documents.
As you have received them by email before then I'd say it's likely they should have come by email which does occassionally get lost.

[/FONT]

This is clearly not fair and I feel anyone reading this will agree with me.

I'm afraid not.
You almost certainly agreed to an automatically renewable policy, so you should have put it in a diary and either cancelled or chased up the missing paperwork.

so how on earth is it right for me to pay you £400.00 plus just to cancel.

As them for a breakdown, but most likely it's short term rates, admin fees, possible finance fees and broker commission.
Posssibly this is all agreed to and stated in your policy booklet, but you first need to get a breakdown.

but seemingly honesty has got me threatened with debt!

You'd be in the same posistion if you made up the cancellation story.

I now receive letters from the debt collectors to pay 500 pounds - Sadness

If they've sold on the debt then this means you've done nothing about it for quite a while.
DO something about it.
Get a breakdown and check whether it's correct.
Ask them to point out where they told you about auto-renewal.
Don't do nothing, it will only get worse.

dunstonh

Prior to getting these letters I had no idea that my policy would be automatically renewed. I never was told any such thing when I took the policy out in 2009.

It would have been in the text. More importantly, it would have been in the renewal letter in clear text obvious to see if you read it.

As Kwik Fit have renewed my policy this year without my say so then I do wonder where the new certificate and schedule are as they have never came in the post nor via email.

did you give them the change of address? They did have your say so as you didnt tell them not to.

If you didnt have the renewal information then what prompted you to purchase new insurance?

This is clearly not fair and I feel anyone reading this will agree with me.

I dont agree with you. However, its very easily resolved. You just need to provide proof of your other policy to Kwik fit. When dual insurance exists, the companies will agree a refund. You may have to pay a cancellation charge but that shouldnt be any more than £50.

sanfly

Hopefully the insurance regulatory authorities will get onto this ridiculous auto renew system, the same way that ofcom has done with BT, looks like auto renew on their contracts will be outlawed soon, this auto system just relies on people forgetting or not spotting it in a renewal letter, almost criminal!!

bingbong1978

sanfly wrote: »

Hopefully the insurance regulatory authorities will get onto this ridiculous auto renew system, the same way that ofcom has done with BT, looks like auto renew on their contracts will be outlawed soon, this auto system just relies on people forgetting or not spotting it in a renewal letter, almost criminal!!

I disagree, how many drivers would there be driving about without insurance because they forgot to renew. Possibly an argument for any other non compulsory insurance for it not being on automatic renewal eg home insurance but as for motor insurance i personally think it is a good idea.

lisyloo

this auto system just relies on people forgetting

Well personally I'd MUCH rather they got cancellation fees rather than forgot to get their insurance at all.
The bigger evil is having no insurance.

If they are the sort of person that forgets then they shoould either buy a policy that doesn't renew or take a cheque down the local brokers.

sanfly

bingbong1978 wrote: »

I disagree, how many drivers would there be driving about without insurance because they forgot to renew. Possibly an argument for any other non compulsory insurance for it not being on automatic renewal eg home insurance but as for motor insurance i personally think it is a good idea.

As form April 2011 all insured drivers will risk at a minimum a £100 fixed ticket if they are not shown as insured on the insurers database, at worst confiscation of the vehicle etc. The only excuse will be if the vehicle has been SORN as of the road, so that should sort them out without auto renewals.......

lisyloo

As form April 2011 all insured drivers will risk at a minimum a £100 fixed ticket

Do you mean all registered keepers?

so that should sort them out without auto renewals.......

I hope it does, but currently insurers are fully entitled to do it, so if you don't want it then don't buy it (or buy a diary).

mikey72

Let Kwik Fit prove to you they sent the correct poilicies and documents to the correct address, and that they haven't actioned the change of address if you told them.
Make a formal complaint that you didn't ask for the auto renew, and you didn't agree to it. (unless you did somewhere), and that you didn't receive the documents one month in advance.
Advise them you will complain to the FOS unless they agree to drop the charges for cancellation, (but be prepared to have to pay a pro-rata fee, and a cancellation charge of up to £50 in the worst case)

sanfly

lisyloo wrote: »

Do you mean all registered keepers?

Yes sorry, glad you are on the ball....

lisyloo wrote: »

I hope it does, but currently insurers are fully entitled to do it, so if you don't want it then don't buy it (or buy a diary).

entitled or not it should be outlawed, the same as the bt auto renew will be soon

dunstonh

Hopefully the insurance regulatory authorities will get onto this ridiculous auto renew system, the same way that ofcom has done with BT, looks like auto renew on their contracts will be outlawed soon, this auto system just relies on people forgetting or not spotting it in a renewal letter, almost criminal!!

If anything, auto renewal will become compulsory. Its been around for at least 20 years. So, its nothing new. The only people that get caught out by it are those that don't read their renewal letter. Its not as if it is hidden in the renewal letter either. Its in plain text in the main letter. Not in any additional docs.

Personally, i don't like auto-renewal but given that the majority of people do renew with the same company and its only those that dont read that miss it and that people have benefited from it, then I don't have an issue with it.