Home Insurance Query

Dan142

Hi, I have just taken out a new home insurance policy using all the tools and tricks from MSE. I have landed a 50% reduction than my renewal abd I have paid as a one off payment with my 16month interest free credit card.

Reading the policy small print I find under the heading 'Cancellation Of Renewal' the following wording.....
'Payment in full customers:you must call us prior to your renewal date if you DO NOT wish to renew your policy. If you fail to do this you will be charged a £25.00 administration fee'.

Here's my query,
Are they allowed to bill me for not renewing even though I have paid in full?
Are they allowed to access my credit card for this amount without my authorization if I fail to contact them?
If so having just taken out my policy can I let them know NOW that I will not be automatically renewing next year?

Any suggestions would be very welcome.

dacouch

What they are basically saying is that at renewal they will send you a letter telling you the premium and terms. They will automatically renew the policy unless you advise them prior to the renewal that you don't wish to renew.

It's best to put it in writing (Keep a copy) and send it by recorded post so you have a record of instructing

mableswift

I think you should consult your insurance company and get the issue cleared as only they can explain you the clauses mentioned in the policy properly according to the rules mentioned in the policy.

InsideInsurance

Dan142 wrote: »

'Payment in full customers:you must call us prior to your renewal date if you DO NOT wish to renew your policy. If you fail to do this you will be charged a £25.00 administration fee'.

Here's my query,
Are they allowed to bill me for not renewing even though I have paid in full?
Are they allowed to access my credit card for this amount without my authorization if I fail to contact them?
If so having just taken out my policy can I let them know NOW that I will not be automatically renewing next year?

It is prewarning you of next years cancellation charges basically.... if you havent notified them before auto renewal date that means you've informed them after it which means the policy has renewed and therefore you are not actually saying you "dont want to renew" but actually saying you want to cancel the new policy

They are allowed to charge a cancellation fee on the new policy

Their T&Cs will have said somewhere that by paying them you agree to a continuous payment authority

Some insurers you can tell NOW that you dont want to be auto renewing (but expect to be hounded at renewal for going down the manual renewal route) with others it again is part of the terms of the policy that you must be on auto renewal.

At the end of the day, see the renewal price, if you cant beat it do nothing, if you can beat it phone then. If you're concerned you'll forget to cancel the renewal then you should be more concerned that you'll forget to buy elsewhere and thus be uninsured