Should car insurers be banned from auto-renewing?

Pmarmalade

Some people are so disorganised there would but a lot of people out there with expired insurance without auto-renewals in my opinion!

However, a standard letter is insufficient. Who knows if the letter made it? More effort should be made to confirm it e.g. follow the letter up with a call to make sure it was received.

stevemcol

Seems quite emotive this one which I find surprising. I think auto renewal provides a valuable safety net. Yes you might be a bit out of pocket if you forget to react to the renewal but at least you get continuation of cover (say you'd been taken ill / hospital etc and your house burns down / car nicked.)
I've always received reminders and always been able to negotiate a better rate or move providers. Don't see the problem personally as long as at least one reminder is sent.

Mike_J

Motor insurance is a contract between you and the motor insurance company. When I did contract law (many years ago) one of the key things about the "offer/acceptance/consideration" test was that you could not "accept" a contract by doing nothing.

I understand that if you continued to drive the vehicle without doing anything then it could be deemed that you accepted via your actions (not sure if that has been legally tested) BUT could they enforce the auto-renewal if you took out insurance elsewhere.

clockworkpurple

I would far rather be hit by someone who'd paid over the odds for their auto renewal than by someone who's uninsured because their policy lapsed...

littlerat

It doesn't bother me - it's 1 free phonecall if I want to cancel. Mine autorenewed the last 2 years as I couldn't get it cheaper elsewhere.

Actually... there was a phonecall made to persuade them to lower the premium more anyway

gaily

I always check my rates before renewing, but wouldn't want to fall foul of not being insured, so Auto renewal, fine, but give an opt out.

Interestingly, I've just renewed (and gone elsewhere) I was with a Compare the Market company, that I wasn't sure about, so was going to change anyway come renewal. I shoped around and got one with M&S for £419 inc all charges (which was about what I'd paid last year, but this one has foreign travel, breakdown cover, legal cover, key cover and a decent courtesy car) I had a conversation with the old provider, who were disappointed that I was taking up an offer that was £80 more than they were offering renewal at.

Felt a bit miffed that I could have been paying £333, instead of £419, but then when their renewal papers arrived, I found the monthly payments for this 'cheap' policy were more than mine on my M&S 'expensive' policy - I am currently paying less than 10% apr to pay annually, about £34 monthly. The other policy was charging an additional £6 a month - why pay £40 a month for a £333 policy - the apr is alomost 45% !!!

Scary (but less so that a fine for not being insured I suppose. This year I had time to check, other years it might slip my mind.) Freedom of choice is what we need.

Emma2

I also had problems with an auto renewal with Aviva, apparently when you get a quote and pay for it online you are automatically opted in for auto renewals the following year.

I did complain to their customer services department and was told it was their standard procedure, no more Aviva car insurance for me!

2giraffes

Personally I hate auto renewal! I sort out all our insurance and they sometimes get shirty when I want to cancel it on my husband's policy even though its my credit card! Thanks for the heads-up about Aviva, as it happens both cars are with them this year as they were the cheapest - will be calling tomorrow to make sure auto-renewal is cancelled!

FightTheRipOffMerchants

This is a complete rip off and shouldn't be allowed unless someone wishes to opt in. They automatically take your card details and put you on auto renewal without really making you aware of it as it usually states this will happen on page 30 of the small print terms & conditions. This is unfair and directly designed to mislead or else why otherwise would they do this? They just want to stop you shopping around and remain with them so they can then inflate their already high premiums some more.

A friend of mine a couple of years ago didn't realise at all that their car insurance was on auto renew and found a cheaper quote and renewed with them. Only when it was right at renewal did they get a letter saying that the insurance was to be renewed by their original insurer. When she rang to say she didn't want to renew they said it had already renewed and they now would charge an admin charge of £60 to cancel or she now would have 2 policies in force. A complete rip off!!

I myself have also had problems in that when I have sent a letter to cancel the insurance (which I had no option but to accept on auto renew) I have subsequently rung them to be told they have not received any letter. This is the problem they are underhand and can say anything. Even if you have spoken to them on the phone (and most are supposed to record the calls) they say they haven't any record of it.

I personally don't want anything "auto renewed" and can't see why the law allows people to take money from your card year on year without your express permission or at least having to "opt in" to this. You shouldn't even have to "opt out" as all they do is hide it and make it as difficult as possible for you to do this so many people will get caught out by it.

yorkshireman99_2

Not all companies fleece the customer when auto-renewal is in place. I opted in, just in case I forgot to renew or was away on business/holiday. In fact, I have managed to review my premium (and cover) each year and I find it quite reasonable. The premium fell last year and has remained unchanged this year. I hate all comparison websites and, particularly the awful, expensive adverts that they produce. How much extra are we all paying each year to cover the cost of these?