auto renewals

browneyedbazzi

I don't mind auto-renew as it reduces the chance that you'll be caught out without insurance. I'm quite happy to do a bit of shopping around when the renewal letter comes through and then call to cancel the renewal if I find a better deal elsewhere....which is exactly what I've done this afternoon for my home insurance. It took me 15 minutes to get some comparison quotes/check cashback etc and then 5 minutes to call up the current provider to cancel the renewal. No problem at all.

It would of course be lovely if insurance companies rewarded loyalty with lower premiums so we don't have to shop around every year and could just happily let the auto renew go through without feeling like we've been ripped off, but sadly they don't seem keen on that idea!

Buzby

It certainly doesn't benefit the consumer who is adult enought to know when their bills are due and make payment in good time. The option of finding cheaper insurance is a further benefit, and the MSE way.

Continuous payment and direct debits may assist the inept and feeble-minded, but then this should be the exception and not the rule.

Any insurer that gets my custom and operates an auto renewal scheme is sent a letter within 30 days of policy inception confirming any authority is cancelled and the policy is to end on the stated date without renewal.

browneyedbazzi

Buzby wrote: »

It certainly doesn't benefit the consumer who is adult enought to know when their bills are due and make payment in good time. The option of finding cheaper insurance is a further benefit, and the MSE way.

Continuous payment and direct debits may assist the inept and feeble-minded, but then this should be the exception and not the rule.

I wonder if you'd feel the same way if you had been hit by a car driven by someone who isn't as 'adult' as you and who had forgotten to renew their insurance?

I also think those who are 'adult enough to know when their bills are due' will also be 'adult' enough to cancel the auto renewal if they do not wish for it to go ahead.

DCFC79

If I forget a policy is up for renewal I treat it as its my own fault for forgetting about it and make dam sure I don't forget about it the following year.

Just use acalender too make a note of when they are due and when to start looking for a cheaper quote, its not hard.

InsideInsurance

browneyedbazzi wrote: »

It would of course be lovely if insurance companies rewarded loyalty with lower premiums so we don't have to shop around every year and could just happily let the auto renew go through without feeling like we've been ripped off, but sadly they don't seem keen on that idea!

Lets make no bones about it, obviously the insurance industry overall is generally profitable even if you have individual products that make technical losses etc. Certain products generally are thinner margins than others but thats a bit of a by the by.

You have a chicken and the egg type issue, the price you are paying now as a switcher is being subsidised by those that dont and they are in the majority. To do what you suggest would require insurers to significantly increase year 1 premiums and year 2+ are not going to be as cheap as your current year 1 prices are.

Overall the price changes would be neutral but for those that switch it'll be a significant increase and for those that sit with the same insurer it'll be a modest decrease.

Given people will switch insurance to save £1, do you realistically think any insurer will increase their year 1 prices significantly hoping that the promise of cheaper year 2 prices will get people in? The only way it'd ever happen is if introductory discounts were outlawed but as a switcher myself I am happy paying lower prices even if it is subsidised by others that dont bother switchign

browneyedbazzi

InsideInsurance wrote: »

Given people will switch insurance to save £1, do you realistically think any insurer will increase their year 1 prices significantly hoping that the promise of cheaper year 2 prices will get people in?

No, I don't think it will ever happen. I understand the reasons why the system works the way it does...that doesn't stop me thinking it would be nice if it was different!

InsideInsurance

browneyedbazzi wrote: »

No, I don't think it will ever happen. I understand the reasons why the system works the way it does...that doesn't stop me thinking it would be nice if it was different!

Until the consumer switches to buying on value rather than price the bottom line number is king.

Obviously Money Saving Expert is owned by Money Supermarket and the aggregators are a key promoter of buying on price and so needless to say this site strongly promotes the same.

Don't expect the change to happen any time soon.

photome

Money-Saving-King wrote: »

Just because you don't like something doesn't mean it's not consumer friendly.

Thats my opinion, just because your opinion is different to mine doesnt make you right

Cyberman60

InsideInsurance wrote: »

Unless the vehicle is SORNed it legally must be insured since the law changed back in June 2011 - see http://www.confused.com/car-insurance/articles/drivers-unaware-of-continuous-car-insurance-enforcement-rule

Indeed, and I always SORN it every time I go away as it saves me months on road tax.

Cyberman60

InsideInsurance wrote: »

No. Most insurers dont take payment at the same time as renewing the policy, some it can be as late at two weeks later.

By that point you've been on cover and owe the money. Cancelling payment does not equal cancelling the policy.


And what would have happened if it arrived 1 day after you left for your 6 week holiday? Very evidently you had forgotten about it otherwise you'd have called earlier to sort it out. Without auto renewal it'd have lapsed and you would have come back to a fine for a breach of the Continuous Insurance Enforcement which is a much bigger issue than a phone call to advise you dont want to auto renew

I did not know that I had a CPA as I renew online and would never have signed up to it if I had known. Of course, if it had auto-renewed I would have had to accept it and put it down to experience.