Auto renewal who has been caught out

DevilsAdvocate1

darich wrote: »

Great idea in theory but not so good in real life.

I imagine that most people would opt out.
Then, going by many posts on here, those same people would forget to renew.

That then means that there would be a massive increase in people with uninsured cars and properties.

There are arguments for and against. I'd have to say that with the above observation, it would be better for the existing system to remain.

Until people can be relied upon to read what they sign, then remember to reinsure, it's better that auto renewal is an opt out system, rather than opt in.

But this is quite a recent system. I've been getting household and car insurance for around 25 years and it is only in the last 5 years or so that I've had to make sure things don't auto renew. I like to shop around every year and don't want to have to remember to cancel a policy. Plus situations change, so the policy you took out last year might not be relevant or even valid anymore. What if you now have points or your license or a conviction? Policy auto renews, you feel happy that you have a policy but find it isn't valid when you need to claim.

I had a situation last year with Green Flag. I had a very unreliable car which I was trying to get fixed. As I kept breaking down I took out Green Flag breakdown cover. I told them when I took it out that I did not want it to auto renew.

Six months later I decided to sell the car as we could not work out what was wrong and it was costing a fortune in garage fees. Six months after that the Green Flag cover ended, but they auto renewed it even though I specifically said I did not want it to. The renewal letter did not arrive. The first I knew was when my credit card statement arrived, well after the 2 week period to cancel the cover.

I rang them straight away to be told that I had been informed it would renew and tough as I was outside the 2 week period. I asked to speak to a manager who agreed, until I pointed out that the cover was for a specific car, a car I no longer owned. Why would anyone pay £120 for cover they could never actually claim on? I also let it be known that I had a recording of the initial phone call where I specifically said I did not want the policy to auto renew.

I did get a full refund in the end, but had to email them the document to prove I had sold the car.

We are all adults. We remembered to renew in the past before this auto renew thing. People are not stupid. Its just a way to get money from people due to inertia.

mikey72

DevilsAdvocate1 wrote: »

But this is quite a recent system. I've been getting household and car insurance for around 25 years and it is only in the last 5 years or so that I've had to make sure things don't auto renew. I like to shop around every year and don't want to have to remember to cancel a policy. Plus situations change, so the policy you took out last year might not be relevant or even valid anymore. What if you now have points or your license or a conviction? Policy auto renews, you feel happy that you have a policy but find it isn't valid when you need to claim.

I had a situation last year with Green Flag. I had a very unreliable car which I was trying to get fixed. As I kept breaking down I took out Green Flag breakdown cover. I told them when I took it out that I did not want it to auto renew.

Six months later I decided to sell the car as we could not work out what was wrong and it was costing a fortune in garage fees. Six months after that the Green Flag cover ended, but they auto renewed it even though I specifically said I did not want it to. The renewal letter did not arrive. The first I knew was when my credit card statement arrived, well after the 2 week period to cancel the cover.

I rang them straight away to be told that I had been informed it would renew and tough as I was outside the 2 week period. I asked to speak to a manager who agreed, until I pointed out that the cover was for a specific car, a car I no longer owned. Why would anyone pay £120 for cover they could never actually claim on? I also let it be known that I had a recording of the initial phone call where I specifically said I did not want the policy to auto renew.

I did get a full refund in the end, but had to email them the document to prove I had sold the car.

We are all adults. We remembered to renew in the past before this auto renew thing. People are not stupid. Its just a way to get money from people due to inertia.

You should have reported them to the FSA, and made a complaint for compensation for your time to the FOS.

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devilsadvocate1 wrote: »

people are not stupid.

q e d ?

dunstonh

But this is quite a recent system. I've been getting household and car insurance for around 25 years and it is only in the last 5 years or so that I've had to make sure things don't auto renew.

Depends what you class as recent. It's been around at least 20 years as I recall it back in my brokerage days. It is however, far more common now then it used to be as far more people pay monthly than they did in the past.

Jane2005

pamstretched wrote: »

No fancy computerised system but automatic renewal anyway

Our insurance agent did not send a renewal advice prior but was honest enough to admit it - reason - short staffed and he was confident we would not get a better deal anywhere else.

Auto renewal seems to be the norm now , but if you are unhappy I believe you can cancel for an admin fee.

I don't know of any insurance company that would charge you an admin fee to remove off the auto renewal, does anyone else ??

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I think they might mean cancel after the policy has renewed...

mikey72

Jane2005 wrote: »

I don't know of any insurance company that would charge you an admin fee to remove off the auto renewal, does anyone else ??

Why not?

I'm sure it will come next.

I'm always told on here the auto-renew is a good idea, it's clearly in the t&c's when you sigh up, you're always sent renewal notices advising you it's going to happen, etc.

So if you want to change the t&c's of your insurance, I'm sure they will be charging the usual £50 fee as soon as they think of it, the same as they do for any other change.

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mikey72 wrote: »

... it's clearly in the t&c's when you sigh up...

Freudian slip?

sanfly

In light of this thread I thought i would check out the "auto renew" with Saga who i have just taken out a new car policy with.

If I followed through with the on-line process when you get to the payment part there is a box to check for no to "auto renewal", quite plain to see, so all OK there.

However I pursued the policy by phone and at no time did the operator make mention of Auto renewal, deliberate or not, I wonder? so I have just had to send an email to Saga requesting that i am removed from this ridiculous opt out system.

Although my old insurer the Co-op do not mention auto renew on their correspondence ill have to ring them tomorrow to make sure.............

mikey72

dunstonh wrote: »

Depends what you class as recent. It's been around at least 20 years as I recall it back in my brokerage days. It is however, far more common now then it used to be as far more people pay monthly than they did in the past.

It's far more common, and it's on yearly payment policies as well.
Between the cars, houses, and business liability insurance, I've got nine policies I pay for each year. Only the business, and two of the cars don't try to renew by themselves.
The rest I cancel with varying degrees of ease each year.