Car insurance renewal 'scam'?

English_Electric

A few hundred quid just left my bank account without my knowledge or express permission. Apparently, my old car insurer (Ibuyeco) has an automatic renewal policy in place whereby they willl automatically renew and charge to your debit/ credit card if you do not respond/opt out!
The policy is contained in the contract in fairly small print on th 21st page though I did not read irt initially.
Since I have now called them and cancelled within 14 days and been assured of a full refund minus a couple of days where I was insured ( I had dual insurance since I chose another company rather than the expensive renewal offered), I am not particularly out of pocket but this opt out policy does not seem fair nor does it seem lawful.
has anybody had a similar experience and is anyone aware of the legal position and where a customer would stand on a legal challenge to this policy.
I accept that it is convenient to automatically renew insurance but should it not be opt in.?
tesco do not automatically send me groceries and charge me for them if I do not shop with their donline service for a month and I wonder how customers would react if Ryanair had a policy in the small print of their contract stating that since you flew with them last year to Italy, they will be assuming you will be going this year and charging you for a ticket if you do not opt out.
I hope I am not giving O/Leary any ideas!

InsideInsurance

This is probably the most common thread on here! That or fees

You gave your express permission when you first purchased the policy as it will have been in the T&Cs that you agreed to.

In addition to what was "hidden away" in the policybook the renewal letter will have made it clear that the policy would auto renew.

It is not only considered convenient but also is encouraged as it is credited with having reduced the number of people that "forget" their renewal date and end up driving without insurance. Insurers naturally like it as it does increase their retention rate. Insurers have been doing this for decades as it was early 90s that Direct Line got into trouble with the ICO for not informing customers.

English_Electric

I have had many policies online yet never opted out and never been charged to renew due to not opting out. This is the first time I have been stung by this aggressive sales ploy.
The fact that there are mnany threads on the subject (which I will search for) indicate that there are people that feel cheated and that the policy is aggressive selling and unfair.
My main question however is regarding any legal challenges(possibly under the unfair terms act, distance selling or other)) that have been or are in the process of being mad to these opt out policies since just because something is in a contract does not necessarily make it legally enforceable and does not trump statutory rights.

InsideInsurance

Distance selling doesnt apply to insurance, all financial services are explicitly excluded. The FSA ICOB rules require insurers to give a cooling off period which you say you did have (along with lots of other elements about how renewals are handled)

Not sure what is "unfair" about being told "do nothing and we'll renew, if you want to cancel tell us". Especially as at the beginning of buying your first policy you have agreed to this, you have been written to at least 21 days beforehand to be told this is happening. The fact many people dont bother reading what they are agreeing to or the letters they receive generally in law cannot be used as an excuse.

serious_saver

I agree that it's annoying but I received my renewal quote a couple of weeks ago and it clearly stated that it would auto renew unless we cancelled.

It may seem bad but a colleague recently realised that she hadn't insured her car because she thought her husband was dealing with it. When she phoned up her insurer she found out that the policy had been auto-renewed. If they hadn't done that she would have been uninsured for nearly 2 months!

cajef

English_Electric wrote: »

IThe fact that there are mnany threads on the subject (which I will search for)

Discussed to death in this most recent thread on the subject.

https://forums.moneysavingexpert.com/discussion/3656995

dunstonh

The policy is contained in the contract in fairly small print on th 21st page though I did not read irt initially.

How about in the large print in the main letter covering the renewal where it tells you what you should do next if you do or do not wish to renew?

or are you saying that you dont bother reading a one or two page letter regarding your renewal?

English_Electric

Sorry for the repeat thread. i am now perusing the older threads if the mods wish to lock or remove this one. My initial feeling after reading some of the many posts is that that the auto renewal practice does not sufficiently stipulate the terms of the ;renewed contract and would therefore not be enforceable in court. Hopefully, a victim of this sharp practioce will haul one of the insurance scammers into court before too long and the issue will be resolved, just as it was with banking charges.

English_Electric

dunstonh wrote: »

How about in the large print in the main letter covering the renewal where it tells you what you should do next if you do or do not wish to renew?

or are you saying that you dont bother reading a one or two page letter regarding your renewal?

I did not receive a letter regarding the renewal, simply a phone call asking if I was going to renew and quoting the renewal price. Perhaps it may shock some to learn that the mail delivery service in Britain has not been 100% reliable and I suspect that computer systems that generate such letters are also equally 'reliable'!

whatmichaelsays

English_Electric wrote: »

just as it was with banking charges.

You mean those banking charges that were found to be lawful?

cajef

English_Electric wrote: »

Perhaps it may shock some to learn that the mail delivery service in Britain has not been 100% reliable and I suspect that computer systems that generate such letters are also equally 'reliable'!

It may also shock you to know that nearly always the people that complain or shout scam are the ones that cannot be bothered to read the T & C when they receive details of their poilcy.