Compulsory Auto renewal?

Eurosaver

RAC Insurance have just told my wife that it is now a legal requirement that they auto renew her car insurance unless she cancels. Is this correct? I'm suspicious because I renewed mine with a different company last week and it wasn't the case then.

kirkbyinfurnesslad_2

I dont know , but when ever i insure i always cancel the auto renewal if its on

kirkofski

Direct Line also do it and I feel its so wrong. Mainly because I've been with them for about 5 years and every year, they send me a letter quoting my renewal figure and that they still have my bank details to auto renew. I then have to ring them to cancel the auto renewal as I can get it about 20% cheaper off their own website(with the exact same details).


Whether its a legal requirement I don't know but its quite an assumption that because you chose to have your insurance with them last year that you'd do the same the next year.


Imagine ordering ordering and receiving your groceries from Tesco online, then the following week they sent the same groceries again and billed you.


Rant over!

ariba10

We had house insurance with Mr T and they had automatic renewal and they had a nasty habit of not reminding you until after they had taken the money.

Trust no one and do not insure with those who insist on it.

(We have found it cheaper to change insurers each year. Loyalty counts for nothing these days)

Nodding_Donkey

I had an insurance broker tell me, when I rang to cancel after getting the 'We are going to renew this unless you tell us otherwise' letter, that I HAD to tell them who I was going to be insured with. He tried to tell me it was a legal requirement. When I said that it was none of his business, the call was recorded and as far as I was concerned that was it, job done, he changed track and started to whine about me recording the call without permission.

Their auto-answer message at the start of the call said "All calls may be recorded". How much more permission do you need

vaio

Nodding_Donkey wrote: »

I had an insurance broker tell me, when I rang to cancel after getting the 'We are going to renew this unless you tell us otherwise' letter, that I HAD to tell them who I was going to be insured with. He tried to tell me it was a legal requirement. When I said that it was none of his business, the call was recorded and as far as I was concerned that was it, job done, he changed track and started to whine about me recording the call without permission.

Their auto-answer message at the start of the call said "All calls may be recorded". How much more permission do you need

excellent point

scotsbob

Eurosaver wrote: »

RAC Insurance have just told my wife that it is now a legal requirement that they auto renew her car insurance unless she cancels. Is this correct?

Only partially correct

Under the Continuous Insurance Enforcement (CIE) rules, it is a legal requirement for motorists to insure their vehicle at all times unless it is declared as ‘off road’ with a Statutory Off Road Notification (SORN) with the DVLA

Therefore while you are required to have your car continually insured (if it is on road) it is not a legal requirement for a company to auto insure.

You should ask the company to quote you the statutory legislation they claim gives them the legal right to do so. I bet they can't.

neilmcl

scotsbob wrote: »

Only partially correct

Under the Continuous Insurance Enforcement (CIE) rules, it is a legal requirement for motorists to insure their vehicle at all times unless it is declared as ‘off road’ with a Statutory Off Road Notification (SORN) with the DVLA

Therefore while you are required to have your car continually insured (if it is on road) it is not a legal requirement for a company to auto insure.

You should ask the company to quote you the statutory legislation they claim gives them the legal right to do so. I bet they can't.

Perhaps this is what the OP's wife was told but misunderstood it.

colino

It is not remotely correct. A clear example of a sales tactic based on a shred of truth - cars by law have to be continuously insured unless SORNed - from a private company seemingly desperate to screw their reputation.
Do not reinsure with deadbeats like that (if they lie to get your business are they going to be any help if you need to claim?), but make sure you write and complain.
Perhaps the nice RAC salesperson just got sacked from an energy company if they lied so blatantly.

Eurosaver

scotsbob wrote: »

You should ask the company to quote you the statutory legislation they claim gives them the legal right to do so. I bet they can't.

She did and you're right, he couldn't.

InsideInsurance

Auto renewal is not a legal requirement but it is something that the regulators like.

The only legal requirement is for you to keep the vehicle insured, of cause insurers will say they are helping you to meet this by having autorenewal set up so that if you forget about the renewal you arent caught short.

Of cause an insurer can make it a contractual requirement that the policy is on autorenewal but that isnt a legal requirement