Car insurance renewed without policy docs

mikey72

sangupt wrote: »

Just an update: My friend could not recover the premiuim deducted and also had to pay a cancellation charge - so it didn't work:-(

Did she make a complaint to the FOS?

yotmon

Don't like this auto renewal lark ! Same thing happened to the other half. Her insurance was up on the 18/08, so checked the renewal which was asking for £459. Searched the net and found the same cover for £295 which we paid for there and then. Today we received a bank statement showing that they had taken the £459 by direct debit. Rang them to explain that we had not wanted their business as they were too expensive and had gone with another company. First operator stated that we would only be refunded from todays date, but would be charged for the insurance cover from the 18/08 to the present. Told them that this was not acceptable, but then got cut off. Rang again and was asked to prove we had other insurance - ie company and policy number before they would refund the full amount. How many people are out there with 2 policies running concurrently - an illegal act which would probably have both companies crying, 'foul' and refusing to pay out if there was an accident ! The renewal form should say in big capital letters at the start of the form if they are going to automatically renew, not stick it in the small print on page 5 ! Its a good job it didnt send her overdrawn as I can't see the ins; company offering to pay the bank charges. If the price has risen dramatically from the previous year then this should cancel any arrangement to auto renew and contact should be made to confirm that their business is required.

dunstonh

Rang again and was asked to prove we had other insurance - ie company and policy number before they would refund the full amount.

Normal requirement and fair.

How many people are out there with 2 policies running concurrently - an illegal act which would probably have both companies crying, 'foul' and refusing to pay out if there was an accident !

It's not illegal. Having dual insurance helps as it shows an error occurred.

The renewal form should say in big capital letters at the start of the form if they are going to automatically renew, not stick it in the small print on page 5 !

Please name the provider that has it on page 5. The majority have it in the main renewal letter on the first page (or second page at most) in the section covering what you should do next if you do or do not wish to renew.

Its a good job it didnt send her overdrawn as I can't see the ins; company offering to pay the bank charges

.

They shouldnt. its not their fault that your OH didnt read their renewal letter.

If the price has risen dramatically from the previous year then this should cancel any arrangement to auto renew and contact should be made to confirm that their business is required.

Or you can read your post and follow simple instructions.

sangupt

mikey72 wrote: »

Did she make a complaint to the FOS?

No, she just threatened to. Apparently that didn't work. She then decided to cut her losses and pay up as she says she doesn't have time to run after them.

System

Most people know that car insurance companies normally send renewal documents a few weeks before the renewal date (or they should do) so that the insured can see what the renewal premium is.

If after reviewing the renewal notice you decide to get alternative quotes then it is only common sense and good practice to contact the old insurance company to ask if they can match the other quote and if not inform them that you wish to allow the old policy to lapse (not cancel and not auto renew). It is also good manners to end the business relationship properly, not just ignore the renewal notice

Nobody should allow their motor insurance to auto-renew because the chances are they will be paying more than they need to, and they should not entrust something as important as car insurance renewal to chance (i.e. the chance that the insurer will renew for you), take responsibility, know when it is due and act before the renewal date, simple.

Then, the auto renewal process will do what it is there for, cover people who forget the renewal or are away at the time thus protecting them from being uninsured.

dunstonh

No, she just threatened to. Apparently that didn't work. She then decided to cut her losses and pay up as she says she doesn't have time to run after them.

They have nothing to fear from the FOS as they have done nothing wrong. So, it's an empty threat in that respect.

mikey72

Apart from ignoring the FSA rules on sending out the paperwork, and admitting it was renewed by the authority of a third party, not the policyholder.

They didn't even try to use the auto renewal excuse here remember, just that some one else told then it was ok!

dunstonh

Apart from ignoring the FSA rules on sending out the paperwork, and admitting it was renewed by the authority of a third party, not the policyholder.

They didn't even try to use the auto renewal excuse here remember, just that some one else told then it was ok!

Who says they didnt send them out?

Not receiving them is not the same as not sending them. I get at least one mis-post a week delivered to me. I always send the mail on but not everyone does.

System

dunstonh wrote: »

Who says they didnt send them out?

Not receiving them is not the same as not sending them. I get at least one mis-post a week delivered to me. I always send the mail on but not everyone does.

Same here, the posties are in such a rush to complete their rounds in the alotted time that they do not take sufficient care who's letters they push through your letter box. Like dunstonh, I always forward misdelivered letters to the correct address, but how do we know if our neighbours are doing the same, or do they simply bin the stuff not addressed to them.

Royal Mail cannot or will not do much about it, even after several complaints, a book of 1st class stamps is all the compensation they offer :T

mikey72

"when she called them they said that they had spoken to and agreed with her daughter (who is a named driver on the policy)on the phone and had gone ahead and renewed based on that conversation"

Seems clear enough to me.