This automatic renewal scam is getting worse (rant)

dunstonh

OP - you're banging you head against a brick wall on this forum - it's inhabited by those with a vested interest in the insurance industry.

That argument may have some strength if a product provider was posting here but there isnt. So, it's just a load of rubbish from someone that doesnt like a balanced discussion.

2cb

Mr_K wrote: »

OP - you're banging you head against a brick wall on this forum - it's inhabited by those with a vested interest in the insurance industry.

Oh, I'm aware of that! I've read enough of their responses in the past. I was just spouting off about this blatant scam. That's why I put (rant) in the title. :-)

Of course it's a scam. If it was for customers' benefit they would make it optional on application.

Oh, and this isn't about car insurance. They (Churchill) were fine about cancelling the auto renew. This is about home insurance, which wasn't a legal requirement last time I checked.

2cb

dunstonh wrote: »

So, it's just a load of rubbish from someone that doesnt like a balanced discussion.

On the contrary. That was the most balanced and unbiased response on the thread.

aeb_2

I did mine online in September and was presented with three payment choices:
1. Monthly Direct Debit
2. Yearly Direct Debit (auto renewal)
3. Single Yearly Payment

I had to think about 2 & 3 as I can see advantages and disadvantages of each.

Auto renewal means I'm covered if I forget or, for instance, if there was a family emergency and I didn't have time to shop around. At least I would be covered

The single payment makes sure that I am not complacent and ensures that I do shop around. Makes me pro-active

I don't think it's a scam as such. Both are good for some people. As long as you know what you are signing up to then take your choice.

dunstonh

2cb wrote: »

On the contrary. That was the most balanced and unbiased response on the thread.

You mean comments are only balanced if they are agree with you. New definition of balanced in that case.

dalesrider

Mr_K wrote: »

Fair enough if autorenew is something you want to opt into, but most insurers are now using this as the default arrangement..

I have no link to ins industry.

Well when taking out a policy if it is part of their policy they tell you.
You then have the option to decline.

In my experience the number auto renewing is dropping. In the last 3 cases or renewing and that is house/car/bike.

But if you tell the insurance co you don't want to auto renew. Make a note of the date and if they take a payment next year get you bank to return it as a cancelled CPA.
Simples :rotfl:

Just don't moan when you then have to declare a cancelled ins policy the year after :eek:

dtaylor84

dunstonh wrote: »

It is more likely their software doesnt have the option to not renew until the renewal documents have gone out.

I usually agree with a lot of what you say, but in this case I'm surprised.

You think it's acceptable for a company to auto-renew an insurance policy after being informed by the policy holder that they do not want to auto-renew?

Their software design is their problem -- once someone has informed them they do not want to renew, they should not auto-renew, end of story. Claiming they have to pursue a cancellation fee because of how they designed their own system is ridiculous.

2cb

aeb wrote: »

I don't think it's a scam as such. Both are good for some people. As long as you know what you are signing up to then take your choice.

But that's my point! I wasn't offered a choice, that's what makes it a scam.

2cb

dunstonh wrote: »

You mean comments are only balanced if they are agree with you. New definition of balanced in that case.

As dtaylor84 says (in so many words :-) ), even someone who normally agrees with you thinks you're behaving like an insurance company stooge here.

olly300

dtaylor84 wrote: »

I usually agree with a lot of what you say, but in this case I'm surprised.

You think it's acceptable for a company to auto-renew an insurance policy after being informed by the policy holder that they do not want to auto-renew?

Their software design is their problem -- once someone has informed them they do not want to renew, they should not auto-renew, end of story. Claiming they have to pursue a cancellation fee because of how they designed their own system is ridiculous.

If you have an issue with it instead of having a go at the people on this website who may or may not work in the insurance industry contact the FSA.

However first of all you need to put in a formal complaint in writing - make sure your letter says "Formal Complaint". Once they reply to you saying they can't do this then complain to the FSA about the unfair contract term.*

Though once you put in your will take your complaint to the regulator if it's not resolved some how I think they will "fix" their system so you aren't auto-renewed.

Point is this website is full of people who have the time and, can write well enough to have a go at other posters yet can't be bothered to write a letter to an insurance company to tell them that what they are doing is "unfair" to consumers.

(*And btw this sort of thing does work. I did it about 3 years ago to the Admiral Insurance Group.)