automatic renewal

drpachu

Hi
I wonder if anyone else had this problem.I recently received a letter from swiftcover with whom i had my car insured last year writing to say i have not paid arrears and they could nt collect the money for my renewal quote.
I had already purchased car insurance from another company and had forgotton about the swiftcover.The card details they had been changed and hence they could nt take money.
Now I am asked to canc el the policy,and probably pay fine!
Help advice.
Ram

rs65

Did you get a renewal notice from swiftcover? Did it mention auto-renewal?

dunstonh

WHen you got your renewal letter it tells you what to do if you do or do not wish to renew the policy. Swiftcover, like many insurers, tell you to let them know if you do not wish to renew as it will automatically renew if you do not.

You need to tell Swiftcover that you told them not to renew and tell the date you did this and ideally the name of the person you spoke to. However, if you dont have those details, they can check their files as your telephone call should be logged and they can check it to see you did give them notice not to renew.

InsideInsurance

drpachu wrote: »

I had already purchased car insurance from another company and had forgotton about the swiftcover.

There is your problem, you forgot to tell them that you didnt want it and so they did what they said they would and renewed your policy.

If you admit you were an idiot and send them proof you bought from elsewhere they may give you a gesture of goodwill and waive cancellation fees/ premium for time on cover but ultimately as you've left them there isnt much incentive for them to give you goodwill

scheming_gypsy

Swiftcover are one of the easiest to deal with when you don't want to renew; you just log on to your portal and click the big 'do not renew button' and that's it.
But as you missed that, all you can do is as already advised, and call them. I had the same issue a couple of years ago with Admiral but I only got as far as reading the renewal price on the letter, so I didn't see the auto renewal part.
they tried to take the money, failed, tried again and failed and then took £68 as a cancellation fee. I wrote a proper snotty letter but decided to phone them and be nice instead; all i had to do was give them details of my new policy to show that I had been covered from the date it ended (if i hadn't then they I was covered by their insurance and using their services), and they refunded me.

daphnevan

Why do we have to have automatic renewals anyway? I very strongly disagree with this practice, is it legal? I am a fully fledged adult in charge of my affairs, but apparently not equipped to make sure I renew my policy in time. Does anyone have advice how to stop this at inception of the policy as opposed to having to contact customer services afterwards? I get stonewalled if I protest and only told it is 'company policy' They dont answer if it is legal.
Please - any insight would stop me gnashing my teeth over this. Thanks. Daphnevan.

dunstonh

Why do we have to have automatic renewals anyway?

It is cheaper for the company (so they can offer lower premiums) and suits the majority of people (those that renew still outnumber those that move each year).

I very strongly disagree with this practice, is it legal?

It is legal. personally, I am not keen on it but its not really a problem. It only affects that those that dont read their renewal letter and they are in the minority. You cant give a perfect solution that everyone is happy with. We have seen people post on here who were saved from prosecution thanks to auto renewal.

Does anyone have advice how to stop this at inception of the policy as opposed to having to contact customer services afterwards?

Some companies do allow an opt out. However, by the time you have phoned them to tell them to do that you may as well not have bothered and just wait until the renewal year you decide to go elsewhere and tell them then.

I get stonewalled if I protest and only told it is 'company policy' They dont answer if it is legal.

The front line staff on the phone at call centres are not going to have the knowledge or skills to give you the answer you want. They are doing what their employer has told them to do.

stugib

daphnevan wrote: »

I am a fully fledged adult in charge of my affairs, but apparently not equipped to make sure I renew my policy in time.

Wouldn't a fully fledged adult in charge of their own affairs be able to read the T&Cs or their renewal notice and ring up to cancel in good time?

cajef

daphnevan wrote: »

I am a fully fledged adult in charge of my affairs

You may be but you would be surprised how many people are not and without auto renew would be driving around without insurance, at least this way if they forget to check they are still legal.

InsideInsurance

daphnevan wrote: »

Why do we have to have automatic renewals anyway? I very strongly disagree with this practice, is it legal?

It is not only legal but actively encouraged by the regulator as it does reduce the number of people that are inadvertently driving around without insurance.

Saying that I have listened in to a call where someone wasnt on auto renewal but thought they were until the police pulled them over for driving without insurance.

Reality is people dont often read letters sent to them from the likes of insurers, many dont even get opened as they're assumed junk mail. Whilst some people are on the ball, know exactly who they're currently with, when its due for renewal and do their bit even before the notice comes through there are many that arent. Many people who I've spoken to in the past dont even know who their actual insurers are let alone the renewal date.

daphnevan

Thanks to all who responded, I am able to read T & C and the renewal notices, my objection is to having to take further action to say no to automated renewals instead of opting out at inception.
As I see it, insurance is an annual contract and unless I agree to continue that contract, it is finished. However, I concede that there are many uninsured drivers who may need this nanny service. How about the compromise, automatically renew without taking payment with a follow up letter to the customer in large font and free phone line to advise if not renewing.