Car Insurance Crisis! HELP!!!

MarkyMarkD

losgiganteskid wrote: »

Why are you rambling on about the National Trust - we are talking here of a legal requirement, an annual motor insurance contract. I don't give one iota what the requirements, good or bad, of the National Trust are.

I ask again - if motor insurance in its current form is not an annual contract, (as you suggest) - exactly what is it ??. I'm sure the other thread readers would be pleased to know your definition.

I hope the original poster keeps us informed as to the outcome of this matter.

I'm not rambling on about the NT, I'm giving an example of another automatically renewable arrangement where the amount changes from year to year.

You can keep repeating that insurance is "obviously" an annual contract, but that doesn't make it so.

It's not a legal requirement to have an annual insurance contract - it's a legal requirement to have your car insured. There's a world of difference between the two.

If you really want a definition, the sort of insurance contract we are talking about here is an ongoing contract where the premium is set with respect to individual years, with the option for either party to choose not to continue the contract at each renewal date on condition that the party wishing not to continue informs the other one.

Just like an NT membership contract, or almost any other sort of ongoing supply/maintenance contract.

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Hi...I was searcing on the site and stumbled across this....
In terms of insurance, I think listening to MarkyMarkD has to say because I can tell you straight off, everything what he is saying is on the nail. This whole conversation is pretty typical daily stuff at work for me (and I work in Travel Insurance) and insurance, be it motor, travel or otherwise works on similar levels.

I have to say there is no grounds for complaint in this situation. It is up to the policyholder to read their renewal notice... and renewals are sent 30 days before exp of current pol to make sure that you have adequate time to decide to stick with company or to shop around.

RibAd

CFC wrote: »

Formally complain. Also, if you've already verbally complained but not had a response in writing, they're probably already breaking their own complaint procedures ( so many companies do this it's unbelievable) which is another black mark with the FSA. Take a look at their complaint procedures and point out to them if they've broken them. A complaint does not need to be in writing, a complaint is 'any expression of dissatisfaction' and it's clearly not been resolved. If it's not resolved we're in writing letter land with strict guidelines as to the timeframe they must comply with. (It will give all this info in the complaint procedure)

The rep you spoke to had a duty to ensure that you knew what you were buying. OK it's a bit of a grey area as to whether they needed to ensure that you understood that particular feature of the product, but the burden to ensure full understanding of the product offering, under the 'Treating Customer Fairly' principle of FSA regulation, is clearly with the insurers, and not with the punters, whether anyone likes it or not.

There's a couple of good points there.... different companies have different complaints procedures in place. There is often the distinction made between "Verbal" and "Written" complaints... Should you wish to made a complaint, I recommend you do it in writing. All policy wordings will have a section in the information of the insurer's details of where to make a complaint. And if you're not sure what to write in a complaint letter, then Watchdog's website have lots of tips.

I don't recommend spouting threats of going to watchdog or the newspaper or tv or whatever,(mentioned in another post sorry), not because whoever you're talking to will change your policy or anything bold like that, but simply because call centre staff can't bat an eyelid. Most CSCs are not allowed give advise under FSA regulation, and will simply state that's it's up to you to do what you wish.

In this whole thread I see what I have to go through every day- people who can't be bothered to listen to the endless scripts that customer service and sales reps have to go through simply because they cant be bothered. again, same with the renewal notifications - people can't be bothered to read the policy booklet cover to cover. It's the same thing with online insurance quotes - people never take the time to read the lists of assumptions. All I can say is simply listen, read the info and ask questions if you dont understand.
In this case I dont see the insurance company to be at fault. Simply because the policy booklet will tell you the information you need to know. And the one thing (apart from being psychic) that insurance companies and staff can't do is make you read the booklets, t+cs, etc.

LibbyS

I have been reading the emails on automatic renewal. I have a similar problem in that my car insurance policy has automatically renewed on 16 April with the AA (Sabre). However, I sent a letter to them on 9 April stating that I was moving address on 10 April and not to renew my insurance. I took out insurance with Churchill on 17 April. As I still hadn't received anything from the AA I telephoned them today, 11 May, to see if they could forward my no claims discount. They stated that they had renewed my insurance and they did not have my new address and that the cancellation fee was £91. My mother paid my car insurance in one lump sum by credit card. Obviously with moving address I have received nothing from AA for requests for payment and no payments have been made to the AA. Where do I stand?

losgiganteskid

Hi Libbys - suggest you back track on this thread to post 15 and do the same as the original poster is doing.

zsuzsa

Interesting thread. The automatic renewal system sounds like a scam to me, even if it is legal. The lesson to be learned, for me anyway, is never to use direct debit for any subsciption type service if I can help it. They rely on the consumer forgetting to cancel or not reading the small print. What a cheap trick! This should be made illegal, in my opinion. Good luck with your complaint - I hope you win!

MarkyMarkD

Using direct debit isn't the issue. If automatic renewal applies, it's legally binding whether you pay it or not - the OP hadn't paid it, as they'd already cancelled their DD. The risk the OP faces is being sued for the amount owed (unlikely though that is to happen, given the amount involved) or have it recorded as a bad debt on their credit rating.

LibbyS - you should have telephoned them, not rely on a letter posted only 7 days before renewal, or preferably done both. Did you get proof of posting for the letter? I also don't understand how you took out a replacement policy on 17 April when the old policy was renewing on 16 April - did you drive your car uninsured for one day? And why do you need proof of discount when you obviously have your renewal letter from the AA which IS your proof of discount?

LibbyS

I never received a renewal from the AA. Although they state they sent one out.

I was away for a few days until 17 April and so started my policy from that date on my return. My car was parked in a private secured compound. It isn't an expensive car and last year was my first time with car insurance (as I am only 21 years) and it cost me nearly as much as the car.

I have been on to the AA website and it states in the terms and conditions that cancellation should be received at least 7 days before the renewal date. I thought that a letter would be more reliable!

With lessons learnt what is the best way to address an automatic renewal. Last year I did my car insurance over the internet. Looking at it now, it does not allow me to say I don't want an automatic renewal as "sneakily" the assumption to automatic renewal is in the very long-winded terms and conditions, which you "must" agree to. At this point I have no option but to accept it. However, with my new insurance company would it be binding if I write to them now stating that I do not won't automatic renewal? Thus if they automatically renew it is not legal.

I don't understand why it is not a choice in the first place. As mentioned in previous threads there are people who don't mind the automatic renewal and it probably benefits them and there are those of us that don't want automatic renewal but prefer to shop around. Surely the solution is to put a question in the actual application (and not hidden in terms & conditions etc) asking you to tick the box if you want automatic renewal.

It has been mentioned that it is not illegal putting the automatic renewal in the terms & conditions etc and that it has now become a norm. Just because all the insurance companies have jumped on the bandwagon and it has become a norm does not mean it is right! The insurance companies would not jump on the bandwagon if it was not benefiting them!

MarkyMarkD

I don't see why you shouldn't write to them immediately following the start of your insurance year, giving notice that you do not wish to renew. That's unless the Ts & Cs state that you can't do this!

If it gets like mobile phone contracts, they'll say that you can't do it in advance and you have to write to them exactly 11 months into the contract to end it exactly 12 months after it started. But I doubt they have done this yet.

losgiganteskid

LibbyS wrote: »

I don't understand why it is not a choice in the first place.

Because it's an insurance company marketing initiative - it improves renewal retention. They want to take the choice away from the customer - it has to do with policyholder inertia.