Should car insurers be banned from auto-renewing?

beefturnmail

Whilst I don't agree in outright banning 'auto-renewing' as I think it may suit some people, I think there should be a clear option to opt-out when purchasing the policy. Quite often this is not the case. I don't want auto-renew or continuous payment authorities to be set up under any circumstances - I am organised enough to arrange my own affairs and e.g. buy insurance in advance if it expires when e.g. I'm away on holiday. I'm fed up withhaving to rush around phoning my current insurer (on an often premium-rate number) and jumping through hoops just to not renew.

I am therfore thinking of simply sending the below template letter every time I purchase any insurance - I think this is pretty clear?

[FONT=Arial, sans-serif]Dear Sir/Madam,[/FONT]




[FONT=Arial, sans-serif]With regards to the policy number reference above. This policy expires on xxxx and I/we do NOT wish to renew the policy on expiry. [/FONT]


[FONT=Arial, sans-serif]Please remove any automatic renewal which has been set up on this policy. [/FONT]


[FONT=Arial, sans-serif]Please remove any continuous payment authorities which have been set up and remove all details of any credit/debit cards held in relation to this policy.[/FONT]


[FONT=Arial, sans-serif]You are not authorised to collect any further payment from any credit/debit cards previously used without my/our express permission and I/we do not accept liability for any charges in relation to renewal of this policy[/FONT]


[FONT=Arial, sans-serif]Yours Sincerely,[/FONT]

waygood

Hi,
Just ditched LV in favour of Elephant as the premium was £200 cheaper (Thanks MSE).
To confirm my no-claims bonus I supplied the details of LV and even got an email from elephant saying they contacted my previous insurer and have confirmed my bonus.

Now 1 month down the line, I get £57.07 deducted from my account by LV as well as £44.66 from elephant.
I phoned LV to sort it all out, but all they could say is they have no record of another insurer and want to charge a further £40+ to cancel the policy!!

When I first signed up to LV I got letters, emails so I was aware I was insured. This time however I got nothing. Their policy doesn't charge for the first month, so when this sort of thing happens, they can claim that you have to pay the first month as you've already had it and then a cancellation charge on top!

This is utterly ridiculous.

Auto-renewal should make charges on day 1, so you know you have it!

naked

Insurance companies just need to improve their customer service. A simple "Would you like it to autorenew?" question should do the job as long as they take note of the answer.

One of the reasons I changed insurers (as well as the price) was because I phoned up and got them to take off the auto renew but when my renewal came through a few months later it was still down to renew automatically.

scooby088

No auto renew for me, i'd rather get my own policy as the renewal of my last policy would've seen me paying an extra £300 for the year. I used a comparison site and got it cheaper than my last policy.

System

waygood wrote: »

When I first signed up to LV I got letters, emails so I was aware I was insured. This time however I got nothing. Their policy doesn't charge for the first month, so when this sort of thing happens, they can claim that you have to pay the first month as you've already had it and then a cancellation charge on top!

That is strange. I am with LV and received a renewal quote before the previous insurance ran out. It clearly showed the price and also the statement that I need take no action if I renew with them, If not I need to contact them to inform them that I would not be renewing.

I don't understand your comment that the insurance doesn't charge for the first month. It sounds as though you are paying by installment and no payment in the first month is a function of the credit company and nothing to do with LV and the insurance.

worldtraveller

Auto-renewal of anything is a pet hate of mine, as I know that pretty much 100% of the time I can get a better deal elsewhere and there is always that potentially annoying & frustrating issue over funds being debited from your bank/debit card/credit card before you have had a chance to review. I don't see why it needs to be banned, but personally I would want to always have an opt-in choice at the time of purchase.

vikingaero

Should stupid people be banned from driving/holding motor insurance because they are too wrapped up to read the basic terms and conditions of something important?

Canny_Janny

Couldn't believe I just got off the phone with Domestic General and shot over here to complain about what's just happened to me, only to see this insurance scam blog on the front page!
I took out cooker insurance 5 yrs ago, ditched the cooker and forgot about the D&G insurance because it was expired.
Low and behold, 2 bank statements later and they are still taking payments.
D&G said they sent out an automatic renewal letter - I never received it - they don't care and won't cancel the policy!!! They won't refund my money either. I can't believe this. I told them I don't want it, I don't have the item anymore, they never received my permission to renew the policy and this can't be legal.
Their answer? Try writing us, we'll look into it.
I am just boiling. I will NEVER take out insurance with these people EVER AGAIN. :mad:
Martin - do something about this! :money:

janiebquick

I have had problems with two insurance companies who auto renewed after being told by me that i did not want to renew my insurance with them. They are Direct Line and The Post Office, both of which have now lost my business permanently.

I hate auto renew. It's my responsibility to renew or accept the consequences if I don't, not my insurance company's.

DCFC79

Dont actually see a problem with it myself, it gets you into a routine of being responsible for something important. Ive always received a renewal price in the post but im always looking before this is sent out. If im unsure when the policy is due to run out i look at the certificate for the date it runs out. Never had a problem with an insurer not cancelling the policy when requested.