Car insurance renewal 'scam'?

mikey72

InsideInsurance wrote: »

Premium = Operation Cost + Technical Premium + Profit Margin

Drive up operational costs and you increase premiums more than they already are.... fairly straightforward concept really.

Premium = Operation Cost + Technical Premium + Profit Margin

Autorenewal premium = Operation Cost + Technical Premium + Increased Profit Margin

Build a good profit margin into the fees, and you can have
Fees= actual fee + extra profit.

JuicyJesus

mikey72 wrote: »

That's very simple.
If the insurer doesn't hide it in the small print, it'll be seen, and if they play fair, no complaints, so we wont be paying.
If they hide it and mess the customer about, as it'll cost a fortune apparently, they'll have to price themsleves out of the market, and the rest of of the "none idiots" no doubt will be intelligent and move.
If you pay more to a poor company, who's the "idiot"

Problem is we are now at the point where because of the relentless drive to make everything Not My Fault every term in a given provider's conditions (be it a bank or an insurer or whoever) is seen as "small print", and should the provider cite it people like you will cry foul about how it's unfair because it's in the "small print". It never seems to result in the epiphany that perhaps reading the "small print" is a good idea because then there are no surprises.

But that's irrelevant because autorenewals aren't buried away. You get a letter about them warning you specifically.

Arg

dunstonh wrote: »

I think the people that are too lazy to read their renewal letter are the real idiots. As are those who think it is fashionable to put the blame for everything at the doors of insurers (or banks or whoever) without taking any personal responsibility for themselves.

How is anyone being ripped off? It results in lower premiums and no-one ends up out of pocket unless it is down to their own failure and in the rare cases it is not their own failure, the company would refund.

How does it stop it from being a rip off tactic?
The terms and conditions point is a seperate issue.I mean it's not like there's a big rip off warning label next to companies in comparison websites now is it?

JuicyJesus

Arg wrote: »

How does it stop it from being a rip off tactic?

It's easily avoided and they send you personal notification of it early enough for you to sort it. A rip off tactic would be if they deliberately waited until the auto-renewal took effect, charged your card and THEN sent the letter.

dunstonh

How does it stop it from being a rip off tactic?

How does it make it a rip off? It doesnt cost you anything and saves money and in some cases, it has prevented people being prosecuted. I cannot see how that makes it a rip off.

I have stated before that it is not my preference but a minor inconvenience to a small minority at renewal is hardly a rip off compared to another inconvenience for the majority.

rudekid48

Virtually every thread on this board can now be broken down into two categories;

1. I bought something on line but didn't bother to read the terms - I am now outraged that I have been charged something that was clearly stated but I couldn't be bothered to read it.
2. I received a letter / email but couldn't be bothered to read it - I am now outraged that the company that sent me the letter / email has done what they said they were going to do.

It's about time that people grew up and took responsibility for their own actions instead of crying foul every time they make a mistake or are too lazy to read something.

The problem with all this limp wristed whining is that it ties up the FOS and other regulatory bodies dealing with spurious complaints and keeps them away from tackling the real corrupt organisations out there.

It also means that the rest of us have to pay more in charges to cover the costs incurred by companies dealing with the complaints that these idiots generate.

I would vigorously support any true injustice but most of these complaints now are pathetic - more Jeremy Kyle than Jeremy Paxman.

Get a grip people - take some responsibility for your own actions! :money:

_Andy_

rudekid48 wrote: »

Virtually every thread on this board can now be broken down into two categories;

1. I bought something on line but didn't bother to read the terms - I am now outraged that I have been charged something that was clearly stated but I could be bothered to read it.
2. I received a letter / email but couldn't be bothered to read it - I am now outraged that the company that sent me the letter / email have done what they said they were going to do.

It's about time that people grew up and took responsibility for their own actions instead of crying foul every time they make a mistake or are too lazy to read something.

The problem with all this limp wristed whining is that it ties up the FOS and other regulatory bodies dealing with spurious complaints and keeps them away from tackling the real corrupt organisations out there.

It also means that the rest of us have to pay more in charges to cover the costs incurred by companies dealing with the complaints that these idiots generate.

I would vigorously support any true injustice but most of these complaints now are pathetic - more Jeremy Kyle than Jeremy Paxman.

Get a grip people - take some responsibility for your own actions! :money:

Post of the year. Sadly these forums have become more and more clogged up with pathetic 'complaints' screaming about 'rip offs' and 'extortion' blah blah ad nauseum