Automatic Renewal Warning! (Sorry, long Winded)

PNPSUKNET

Just had a look at my old kwik fit policy, it was emailed with a link to download them. In terms of business it says,"

Renewals

If you are paying for your insurance by instalment plan or debit/credit card in your own name, we will normally automatically renew all
your motor policies, unless you have asked us not to.
We won’t automatically renew your policies if your payment does not authorise. We may, at our discretion, choose not to automatically
renew if you have an unpaid balance or have had difficulty in making your payments.
We will write to you before the renewal date to explain what will happen, and to let you know what the policy terms and new payments
will be.
Any renewal premium quoted only applies provided no claim happens or is reported after the renewal quotation is issued.
Renewal is invited as long as the insurer has been told of any change that may affect the risk since the original application or last
renewal, including, but not limited to: change of address; change of use; change of occupation for any driver; any convictions, fixed

penalty offences, pending prosecutions, serious illness and/or disability of any known drivers; change of

Quote

How will scrapping automatic renewals help anyone?

Your car is insured for one year. You know when it started and you know it will end one year later. You have over 50 weeks to prepare for this event. The problem isn't automatic renewals, the problem is people.

mikey72

PNPSUKNET wrote: »

Just had a look at my old kwik fit policy, it was emailed with a link to download them. In terms of business it says,"

Renewals
If you are paying for your insurance by instalment plan or debit/credit card in your own name, we will normally automatically renew all
your motor policies, unless you have asked us not to.
We won’t automatically renew your policies if your payment does not authorise. We may, at our discretion, choose not to automatically
renew if you have an unpaid balance or have had difficulty in making your payments.
We will write to you before the renewal date to explain what will happen, and to let you know what the policy terms and new payments
will be.
Any renewal premium quoted only applies provided no claim happens or is reported after the renewal quotation is issued.
Renewal is invited as long as the insurer has been told of any change that may affect the risk since the original application or last
renewal, including, but not limited to: change of address; change of use; change of occupation for any driver; any convictions, fixed

penalty offences, pending prosecutions, serious illness and/or disability of any known drivers; change of

"We won’t automatically renew your policies if your payment does not authorise. "

That seems quite clear.

So no renewing at a stupid price, demanding the money later, then threatening debt collectors if you don't pay a punitive cancellation fee mentioned anywhere.
Hope the op gets this sorted, make sure it is reported to the FOS in the form of a complaint, and it's a shame there isn't a penalty sytem in place to fine the insurers for extorionate threats like this.

DCFC79

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!!

theres nothing wrong with the auto renewal, if people cant be up to date when things are due to run out then thats up to them,

sanfly

Quote wrote: »

How will scrapping automatic renewals help anyone?

Your car is insured for one year. You know when it started and you know it will end one year later. You have over 50 weeks to prepare for this event. The problem isn't automatic renewals, the problem is people.

Agree the problem is people, however Auto renewals is just another example of the ever encroaching nanny state mentality taking over this country, the insurance companies rely on either people not noticing the clause or on royal mail not delivering the renewal, they draw you in with introductory bonuses, apply on-line discounts, etc, then when you shop around at renewal for a cheaper quote, which you will invariably find and purchase, they hit you with an auto renewal. No i have never been caught by this system (touch wood) but object to any auto system that is designed to catch you out, which have no doubt this is!!!!. if necessary it should be an opt in system not an opt out.

mikey72

If the insurer was responsible, I'd agree with it.
Vastly overpriced automatic renewals you can't cancel don't present a good image for them though.

But I agree it's people, those employed by the insurance companies.

The AA tried it with me recently, as I didn't put it in writing for once.
Bearing in mind it's £100 to join for a new member.
We got the renewal notice, £150+
Rang to cancel, and got an offer of £105. Said no, and were assured we would not have the policy renewed.
About a week later, we received another set of cards, thanking us for staying.
We rang again, they assured us it was cancelled, and it was just the computer.
Today we received a letter, they have tried to take the money (the £155+), but couldn't, as the direct debit had been cancelled.
Would we like to contact them to pay, or send a cheque?

mikey72

sanfly wrote: »

Agree the problem is people, however Auto renewals is just another example of the ever encroaching nanny state mentality taking over this country, the insurance companies rely on either people not noticing the clause or on royal mail not delivering the renewal, they draw you in with introductory bonuses, apply on-line discounts, etc, then when you shop around at renewal for a cheaper quote, which you will invariably find and purchase, they hit you with an auto renewal. No i have never been caught by this system (touch wood) but object to any auto system that is designed to catch you out, which have no doubt this is!!!!. if necessary it should be an opt in system not an opt out.

I don't even think this is a nanny state.
I think it is just a cynical way to catch you with a 100 or 200% rise in premium in the second year. In should certainly be opt in, and it should be capped at whatever price you could be charged for joinng with a new quote on line.