Home Insurance Auto Renewal ... Please help!

Si__2

I took out home insurance last year and I recently received a letter saying I was due for renewal. I had planned to shop around and get a best deal but I stupidly forgot and never got round to cancelling the existing policy.

I got back from holiday yesterday to read a new letter saying the policy has renewed but the payment was outstanding as the card I originally paid on last year has expired.

To cancel the policy I face a £45 fee - and if I pay the renewal price it will cost double my cheapest quote from a comparison site.

- What should I do? - As the payment is outstanding due to the card expiring since the policy was taken out last time, can I use this as a loophole to get out... or will they chase me for the money and give me a black mark on my credit score?

Any help much appreciated!

CKhalvashi

Si_ wrote: »

I took out home insurance last year and I recently received a letter saying I was due for renewal. I had planned to shop around and get a best deal but I stupidly forgot and never got round to cancelling the existing policy.

I got back from holiday yesterday to read a new letter saying the policy has renewed but the payment was outstanding as the card I originally paid on last year has expired.

To cancel the policy I face a £45 fee - and if I pay the renewal price it will cost double my cheapest quote from a comparison site.

- What should I do? - As the payment is outstanding due to the card expiring since the policy was taken out last time, can I use this as a loophole to get out... or will they chase me for the money and give me a black mark on my credit score?

Any help much appreciated!

The best thing to do is to phone the company and state you've been on holiday, therefore didn't receive the post.

I get a little peeved with auto renewal, but be nice to them, and you'll occasionally be let off, minus what you've already 'used'.

CK

Quentin

They will chase you.

But had you come home from hols and found your house burnt out you would have been covered!

dunstonh

But had you come home from hols and found your house burnt out you would having been covered!

I think some people would prefer the burnt down house as long as it avoids auto-renewal. (not aimed at OP).

- What should I do? - As the payment is outstanding due to the card expiring since the policy was taken out last time, can I use this as a loophole to get out... or will they chase me for the money and give me a black mark on my credit score?

The contract is one thing. Method of payment is another. There is no loophole. You have a debt that needs paying.

If you had bought a replacement policy then you could ask for a refund under dual insurance. However, as you did not buy a replacement policy, you cant do that. So, either pay for another year or see what the cancellation rate is compared to alternatives and see which is most effective.

opinions4u

I had planned to shop around and get a best deal but I stupidly forgot and never got round to cancelling the existing policy

You missed the time window to act and you know it.

You either stay with your existing insurer or pay the fee and go elsewhere.

DCFC79

Dont try and get out of it when it was your error. Speak to the insurance co and explain how you made an error, they might be understanding. In future maybe make a note when each of your ins policies is up for renewal.

McKneff

Credit to you though OP, that you admitted it was your fault and you forgot, most people who do this usually say they never received it through the post.

Whilst at times I dont agree with auto renewal, I wonder how many people would be driving around or have no house insurance etc if they were left to their own devices to remember to renew it.

CKhalvashi

McKneff wrote: »

Credit to you though OP, that you admitted it was your fault and you forgot, most people who do this usually say they never received it through the post.

Whilst at times I dont agree with auto renewal, I wonder how many people would be driving around or have no house insurance etc if they were left to their own devices to remember to renew it.

I did drive with no tax/insurance/MoT for 2 weeks as I completely forgot! It was an ancient BMW I'd originally bought to use for a few months upon my return to the UK, and ended up keeping for 2 years!

It did pass the MoT with nothing wrong with it, but I admit I was completely at fault for not bunging it in the diary!

CK

Della22

On the subject of Auto Renewal ....
I took out a Home Insurance policy with Aviva in Sept 2010. All the documents came through on line and I had to set up a log in to view them. Everything was fine. Last year they wrote to me with a quote for the next 12 months. It was acceptable and the letter said "if you are happy with the quote you don't need to do anything" I hadn't realised they kept my credit card details but on this occasion I was happy for it to carry on. I've had a bad 12 months and didn't log back on to Aviva to look at my policy again - I assumed all was well. Last week I decided to log on as I know it will be due again in September. It wouldn't let me enter my details so I contacted Aviva to find out why. That was when they told me - they hadn't renewed it last year!! They didn't know why and apologised. My credit card is still current and there was no reason the payment couldnt have been taken. I was really upset - what if I'd had a fire or break in??? They went on to quote me for this year but I was so disgusted I've gone somewhere else now. They even said I might not get the no claims bonus as I hadn't had insurance since last September!! Anyone else had this problem with Aviva?

dunstonh

they hadn't renewed it last year!! They didn't know why and apologised. My credit card is still current and there was no reason the payment couldnt have been taken. I was really upset - what if I'd had a fire or break in???

Aviva would have paid out because they told you that you were covered. The insurer cannot disregard its liability due to a clerical error.