Automatic renewal of car insurance - GRR

lollyash

I found out only recently that the AA automatically renewed the car insurance I took out three years ago, for my mother's car - without my permission. They only failed to take it for a 4th year as the debit card was expired.

They said that in the small print is says if you don't actively contact them to cancel it, it renews and they take the money. I didn't know companies can do this. I don't even own a car, I took it out on my mum's car when I was stranded at a garage one time having put diesel in the petrol car.

Can I do anything about this? I don't believe it's lawful for the AA to take money without me signing something each year - surely?

dunstonh

They said that in the small print is says if you don't actively contact them to cancel it, it renews and they take the money.

Not only does it say it in the small print it also says it in normal text in the renewal letter. Not hidden away but in plain sight.

I don't believe it's lawful for the AA to take money without me signing something each year - surely?

It is.

Can I do anything about this?

There are two issues here. Your mother has had three years of car insurance paid by you. So, perhaps she owes you the money. Alternatively, if your mother has ended up with multiple car insurance policies, you can use the dual insurance route to get a refund.

Alternatively, if no other insurance was taken out by your mother and she refuses to pay you then you can complain to the AA that they used your card. AA can then attempt to lodge a debt with your mother and take appropriate action to get her pay and/or void her insurance leaving her uninsured and at risk of prosecution.

Probably, initially, I would speak to your mother.

nobbysn*ts

Ask the AA for repayment. If they won't, raise it as a complaint with the FOS.

lollyash

thank you for the quick response guys. I certainly don't wish to ask my mother for the money, she was paying her own car insurance!
I will try the dual insurance route or the complaint to FOS, many thanks indeed for your advice :-)

dunstonh

You cant complain to the FOS without complaining to the AA first and getting a rejection.

If there is dual insurance then that would be the easiest solution. No complaint required. sorted by the normal admin team and a refund follows when dual insurance verified.

lollyash

hmmm, unfortunately mum's insurance wasn't with AA, it was with another provider. Her insurance didn't cover for a call-out, hence I called the AA, to tow me home like an idiotic woman who cannot differentiate between diesel and petrol. So I fear I cannot use this route.. I shall try though, and if I get no satisfaction, I'll try the FOS. You've been most helpful. THANK YOU.

mills705

So not insurance but breakdown cover then?!
If they knew it was your card it should have been set up on a third party payer option. This means that you and her her would have been sent renewal notices! I'd be surprised if either of you haven't received at least one of these? As well as marketing letters trying to upgrade the cover for a few quid!

lollyash

yes I did receive renewal notices. I cannot lie - in my ignorance I thought that if I did not actively call them to renew it, it would lapse. It seems to be the opposite. Unless you actively call them to cancel, it carries over and they take the money from your account.

Aretnap

The renewal letters should have said (something like) "You don't need to do anything, we'll renew your cover automatically and take payment from your account. If you'd prefer not to renew, please call us on..."

You got three of those three years apart and assumed that the cover had cancelled and would stay cancelled?

lollyash

well I wasn't living at the address, so if a letter came I thought it was pestering me to renew and told my mother to shred it. As I said, I assumed I had to actively renew it myself. You live and learn.

cajef

lollyash wrote: »

As I said, I assumed I had to actively renew it myself.

That was your first mistake never 'assume' anything, read the Terms & Conditions of the policy, secondly never tell someone to shred anything without checking the contents to see what the details are.