Insurance Renewal Phone Call Trick

papalazaroo801

Hi,

Just would like to make you aware of a trap I've fallen in and it has cost me dearly.

My Car insurance came up for renewal a month ago, I read the renewal and the small print. Was not happy with it, but left the phone call for a suitable time as it was after their office hours. Within a few days whilst I searching for better alternative quotes, I had a phone call from the said insurance company's sale team asking if I was happy with the renewal and if I wanted to carry it on. To which I replied I didn't and that I would not be renewing! Thought that was the end of it. Unfortunately I never took the persons name, as this was a cold call to me.

Anyway a month later I noticed that this insurance company had taken a direct debit payment. I checked my records and this was for the first payment towards the renewed insurance. I phoned them the next day and informed them that I didn't renew but had informed their sale's team. They responded by saying there was no record of me contact them and that the 14 days had lapsed. There wouldn't be a phone call record would there as they contacted me. I had no confirmation that the renewal had taken place until they took payment.

So other than the £58 direct debit and the £190 cancellation fee I've had to pay, I'm in total £248 out of pocket for 21 days insurance, which I was also insured on another policy taken out to replace the renewal. They contacted their underwriters who back dated the insurance to the start of the policy, but they have refunded me £0.00. The other insurance is with the same underwriters but different broker.

I understand there will be an admin fee but £248. Your having a laugh.

So moral of the story is, ring them and cancel. I've been stung big time. Thieves in Suits have taken me for a mug.

Regards,

Disgusted.

mikey72

This is wrong on several counts.
Send a written complaint, then refer it to the FOS.
If it goes to the FOS, include £50 compensation for your time and letter writing.

papalazaroo801

Thank you Very much Mikey72 for your advice.

I've looked at the FOS website, but I think I need to, like you said, put a written complaint in to the insurance broker and leave it for the 8 week period if I get no joy, then contact the FOS.

I think this has been an under handed tactic to trip potential renewing consumers up. I genuinely believed I'd cancelled it, but they said I hadn't. I remember speaking to them, as they called me.

I know what I'll say to insurance companies that ring me up cold calling now. Two words, ends in Off!

Many Thanks Again.

Dangermac

:beer:

papalazaroo801 wrote: »

Hi,

Just would like to make you aware of a trap I've fallen in and it has cost me dearly.

My Car insurance came up for renewal a month ago, I read the renewal and the small print. Was not happy with it, but left the phone call for a suitable time as it was after their office hours. Within a few days whilst I searching for better alternative quotes, I had a phone call from the said insurance company's sale team asking if I was happy with the renewal and if I wanted to carry it on. To which I replied I didn't and that I would not be renewing! Thought that was the end of it. Unfortunately I never took the persons name, as this was a cold call to me.

Anyway a month later I noticed that this insurance company had taken a direct debit payment. I checked my records and this was for the first payment towards the renewed insurance. I phoned them the next day and informed them that I didn't renew but had informed their sale's team. They responded by saying there was no record of me contact them and that the 14 days had lapsed. There wouldn't be a phone call record would there as they contacted me. I had no confirmation that the renewal had taken place until they took payment.

So other than the £58 direct debit and the £190 cancellation fee I've had to pay, I'm in total £248 out of pocket for 21 days insurance, which I was also insured on another policy taken out to replace the renewal. They contacted their underwriters who back dated the insurance to the start of the policy, but they have refunded me £0.00. The other insurance is with the same underwriters but different broker.

I understand there will be an admin fee but £248. Your having a laugh.

So moral of the story is, ring them and cancel. I've been stung big time. Thieves in Suits have taken me for a mug.

Regards,

Disgusted.

I cant see why this problem cant be easily resolved, particularly as it is the same insurer.

Have you spoken to a manager, and calmly explained the situation?

This matter should easily be resolved in your favour.

The insurer will never let this get to FOS stage, as there are too many aspects which are in your favour.

Speak with a manager.

DM

InsideInsurance

Which insurer is it?

Everything they teach you in insurance strategy school is that you disturb auto renewal customers as absolutely as little as is legally possible. I am therefore very surprised than an insurer would then be outbounding you during the renewal window at all.

Are you sure it was actually your insurer and that they were calling as your existing insurer? Could it have been in response to quotes on an aggregator (eg confused.com), either being another insurer you've mistaken for yours (eg a broker whos quote happened to be from your insurer)?

As Mikey says, put in a complaint and if needs be escalate to the FOS but I would be surprised if it is as you believe it is.

papalazaroo801

First of all, I'd like to thank DangerMac and InsideInsurance for your replies.

I can confirm as of today that this issue is now closed. I've been given a full refund. No admin fees or cancellation fees were applied.

I spoke to the said insurer this morning and asked why I was sent a letter that I received yesterday for a refund of £0.00. This confused the person I spoke to, as they said that a full refund had been applied to my payment card. I checked my bank account last night and nothing was paid in there, why would there be? But after the phone call I checked and it had been paid in.

InsideInsrurance, I think you could be right about it being a cold call, but it was a cold call from the said insurance, they asked if I was going to renew my renewal, but that was after I have been searching around the price comparison websites. This is probably where I went wrong, thinking they were calling about me renewing.

I own and insure 3 cars, so I read the small print and follow the instructions, but now I have learnt from this lesson which could have cost me, that now you must contact your insurance company to cancel any renewal, to save this aggravation, whether or not they contact you.

Let this be a warning about the horrors of Auto-Renewal policies.

Many thanks to you all for your help.

Regards,

Happy.

mikey72

Good result.

Wutang_2

The horrors of auto-renewal policies....??