Automatic insurance renewals

gilf

My daughter was with Hastings Direct for her car insurance last year, her first year covered. The renewal price was much more at the end of April, even with an extra year no-claims. I arranged a new policy with Endsleigh the day before the policy ended.

We were surprised when hastings rang to ask for £900+ because the credit card had expired. When I rang them they asked for proof that we had taken out a policy on the expiry date and said they stop the new policy.

In short, we've just had a bill for £160 to cancel the policy. This they say is because the policy renewed as per ther terms and conditions. Can I do anything, or will we have to pay?

mikey72

Apart from the "read the t&c's" you'll get shortly, usually the answer is yes.


A few points though.

Did they send you renewal with the auto renewal clearly stated, and with reasonable time to consider it, usually about 4 weeks?
If they did, did you respond to them?

KathysBoy

!!!!!! wrote: »

My daughter was with Hastings Direct for her car insurance last year, her first year covered. The renewal price was much more at the end of April, even with an extra year no-claims. I arranged a new policy with Endsleigh the day before the policy ended.

We were surprised when hastings rang to ask for £900+ because the credit card had expired. When I rang them they asked for proof that we had taken out a policy on the expiry date and said they stop the new policy.

In short, we've just had a bill for £160 to cancel the policy. This they say is because the policy renewed as per ther terms and conditions. Can I do anything, or will we have to pay?

Well, it depends what the terms and conditions say, but having a quick look at the website, it does say they may renew automatically, unless you tell them otherwise. However, it also says "However, we do not guarantee to renew your policy, and we won't automatically renew your policy if your payment fails to be authorised.", so if the payment wasn't authorised then it can't have been renewed.

My daughter recently had this with a travel policy. We just wrote an email saying we didn't want the policy, and as it hadn't been renewed because the credit card had expired (exactly the same as you) we weren't prepared to provide any more credit card details, BUT we were prepared to pay their normal cancellation admin fee of £5 (£25 in your case) if they provided details of where to send it. they replied and said it was okay

mikey72

I think you should point them to the Hastings Direct website.
And tell them you owe them nothing, and to read the terms and conditions in the FAQ's.


What happens if my policy has renewed automatically but I have taken insurance elsewhere?

We will need to see a copy of your certificate from your new insurer. Providing the certificate shows you took the policy on your renewal date we will issue a refund of any payment we have taken and cancel your renewal from the inception date.

http://www.hastingsdirect.com/car-insurance/FAQs.html

in the payments section.


I have to say, this seems a very fair way to conduct auto renewal, (well, it would have been if they actually did it)

dunstonh

In short, we've just had a bill for £160 to cancel the policy. This they say is because the policy renewed as per ther terms and conditions. Can I do anything, or will we have to pay?

If you take a look at the renewal letter it tells you what to do next if you do or do not wish to renew. Automatic renewal plans should state what to do next.

All you need to do is read the letter when it arrives. You cant miss it then. Its mainly people that dont read the renewal letter that seem to get caught out. Although in this case, they do seem to have a fair approach to those that do.

mikey72

I'm sure you know my feelings on auto renwals, but this does seem to be the ideal solution, (if they actually did it), it's a shame more don't.

gilf

mikey72 wrote: »

I think you should point them to the Hastings Direct website.
And tell them you owe them nothing, and to read the terms and conditions in the FAQ's.


What happens if my policy has renewed automatically but I have taken insurance elsewhere?

We will need to see a copy of your certificate from your new insurer. Providing the certificate shows you took the policy on your renewal date we will issue a refund of any payment we have taken and cancel your renewal from the inception date.
(link)

in the payments section.


I have to say, this seems a very fair way to conduct auto renewal, (well, it would have been if they actually did it)

Thank you so much, this seems to cover it. I was panicking and not taking anything in.

lisyloo

gif - suggest you send your (copy of) certificate by recorded delivery (74p)

Esure lost my copy 4 times when I wanted a refund.
Can you believe it?
I don't.
I think some companies cynically lose post they don't want to receive.

In the end I got someone to stand by the fax machine whilst I faxed it, then I rang on the phone to make sure they'd got it.
These days they might even accept a digital scan by email.

In my experience using recordeed delivery does often stop them trying it on.
Sometimes you get a time,date and signature on the RM website.
A free proof of posting doesn't have the same effect as that does not prove it was delivered.

dacouch

lisyloo wrote: »

gif - suggest you send your (copy of) certificate by recorded delivery (74p)

Esure lost my copy 4 times when I wanted a refund.
Can you believe it?
I don't.
I think some companies cynically lose post they don't want to receive.

Many moons ago, I spent a year working at the first direct Insurer (Which was not DL).

It was a real eye opener, they had a team of circa 20 people dealing with the admin post. There was a back log of about 20 days, the team leader was under extreme pressure and had financial benefits to reduce the back log. This was passed down the team through the other senior staff to the staff.

They amazingly managed to reduce the back log to a week which got them all bonuses and pats on the back. The rest of the staff did not believe it as they were not putting much more work in etc. We caught them selectively binning post in as it came in and also getting the oldest post and simply binning it all which drastically reduced the length of the backlog. (The above was not sanctioned by the company)

The same company also had a "Bleeding Edge" (It's one step on from cutting edge...) think tank of two people who thought up stupid ideas to improve the company / staff moral / work processes etc. Their solution to the 20 back log was to rename it from a back log of post to a "Tail" of post

lisyloo

Amazing.
The point about recorded delivery, is that you can then write a legal letter with the authority of knowing they received it e.g.
"Refund me withint 10 days otherwise I shall take this case through the small claims tracki n the county court".

Theorectically a free proof of posting holds the same legal status.
But outside of court my experience is that it's not taken as seriously as it's a proof of posting and not delivery and I am talking about trying to resolve things out of court.

If I am sending back goods that belong to someone else (on approval or hire DVDs) then a proof of posting is sufficient because it's not your problem if it's lost.
If it's going to be your problem the recorded delivery is best.
If it's going to be someone else's problem (their goods) then a (free) proof of posting is sufficient.
That's my rules of thumb and it's worked well for me whilst minimising costs.

gilf

I have just spoken to Hastings and they claim not to have received my letter dated 9 May, when I sent them proof of insuring elsewhere. I am just about to send this again and I will send it recorded delivery as you suggest.

Thanks for the advice.