Halifax Home Insurance - Lapse or Cancel

TrickyDicky101

I have about 10 days remaining on my current annual policy for both Contents & Buildings with Halifax. They sent some renewal documents through to me and the cost has near doubled compared to what I pad last year (to be fair I knew I was on an 'introductory' discount so it wasn't a surprise it went up).

Anyway, I always shop around so today I rang up Halifax to make sure it didn't autorenew. The conversation ultimately went like:

Me: I'd like to make sure my policy doesn't autorenew when it lapses [in 10 days' time], please

Operator: OK I've recorded you want to cancel your policy

Me: What? No - I just want the policy to lapse when the term is up and not autorenew. I don't want to cancel the existing policy.

Operator: It's the same thing.


I did get out of the operator that the policy would run until the original term (ie for the remaining 10 days). But this isn't right is it? Insurance providers should be very careful about the terminology their staff use on the phone.

No wonder there are so many posts on MSE from Joe Public confused over cancellation/lapsing.

Anyway, I'm off to look for new insurance now

Quentin

Probably you are better trained in the insurance definitions of dictionary words than the "consultant" was.

For belt and braces (esp when you now know the competency of the company) always worth confirming instructions in writing and asking the other side to confirm their receipt of the instructions.

TrickyDicky101

I know it's not as good as getting actual written confirmation but I do always note down date and time and contents of any calls I have with insurers/banks/credit card companies in the hope that this would facilitate tracking down tape recordings of the conversation if necessary.

InsideInsurance

You have an existing policy, whatever happens this will lapse in 10 days time - no mass market providers would do an endorsement that extended the term of the existing policy.

You have received a quote (renewal) for a new policy to start as the old one expires. With AutoRenewal the acceptance will be considered automatic unless you tell them otherwise.

So from a certain view point you dont lapse the existing policy, that happens naturally, but you cancel the renewal (not the existing policy). Certainly from an operational point of view I have known several systems where after your call the original policy would have been untouched but the quote would have been cancelled to prevent it coming into force.

Unfortunately these concepts are not universal and when you move up and out of personal lines into corporate insurance they get even more messy as you start getting multiple policies and even non-insurance contracts that sit above/behind the insurance policies.

Call centre agents are not always the highest trained and not all are the most engaged with their jobs (obviously there are some that are and I started my career there so not putting them down) and so you arguably have to allow them minor indiscretions or them not wanting to rationalise their choice of terminology as long as in plain english you've been told what you wanted to hear.