Caught by auto-renewal - Accidentally insured twice.

GingerBob_3

Auto-renewal is just the latest scam perpetrated by that lowest of low-life industries, Insurance.


It means that if you want to change insurer at renewal you now have to deal with two companies instead of just one. It's inertia selling and should be banned, or at the very least you should have to opt in to it.

dunstonh

Auto-renewal is just the latest scam perpetrated by that lowest of low-life industries, Insurance.

Auto renewal has been around decades. It is not a scam.

It means that if you want to change insurer at renewal you now have to deal with two companies instead of just one.

Most people renew with the same company. So, the majority of people benefit from auto-renewal. We have also seen posts on this forum from people who assumed they had auto-renewal when they didnt. They then went on to find themselves uninsured with an incident. So, it clearly benefits the majority.

Whilst I am not personally a fan of auto-renewal, it does make sense and the only people that lose out by it are those that choose not to read their renewal letters.

gargoylejones

I do totally feel like I have been had on a big scale! I am so careful with my day to day money and feels like I have saved pennies, but lost lots of pounds. Going to sit down at least once a month with my hubby to go through statements etc as I feel like I am swamped with finances, housekeeping, children and business. Wish other insurers followed the steps like aviva above x

gargoylejones

dunstonh wrote: »

Auto renewal has been around decades. It is not a scam.



Most people renew with the same company. So, the majority of people benefit from auto-renewal. We have also seen posts on this forum from people who assumed they had auto-renewal when they didnt. They then went on to find themselves uninsured with an incident. So, it clearly benefits the majority.

Whilst I am not personally a fan of auto-renewal, it does make sense and the only people that lose out by it are those that choose not to read their renewal letters.

I used to receive letters in the post confirming insurances etc, with my other insurers they still do. If I received a letter in the post confirming insurance for the following year, then this would have been spotted and there would be no issues. but the insurance emails were overlooked as they were going into an old email account which does not get used and it was paperless

GingerBob_3

dunstonh wrote: »

Auto renewal has been around decades. It is not a scam.



Most people renew with the same company. So, the majority of people benefit from auto-renewal. We have also seen posts on this forum from people who assumed they had auto-renewal when they didnt. They then went on to find themselves uninsured with an incident. So, it clearly benefits the majority.

Whilst I am not personally a fan of auto-renewal, it does make sense and the only people that lose out by it are those that choose not to read their renewal letters.

Until recent times it was quite uncommon. Now they've realised there's money to be made they're all at it. Like I said - if you want auto-renewal you should opt in. As it stands, you have to opt out, assuming they'll let you; I believe some companies won't.

dunstonh

I used to receive letters in the post confirming insurances etc, with my other insurers they still do.

If you opt for a paperless (email) contract then expect the communications to be paperless and arrive by email.

but the insurance emails were overlooked as they were going into an old email account which does not get used and it was paperless

If you change your email address then its important to update the providers with your new email address.

Often, old email addresses can be forwarded to the new email address.

If I received a letter in the post confirming insurance for the following year, then this would have been spotted

So, when it came up for renewal, you bought new car insurance without even wondering what the old insurer was pricing at and without any no claims confirmation from that old insurer?

I do totally feel like I have been had on a big scale!

You have not been had. You just made some mistakes.

That said, most insurers will cancel/void the duplication and refund minus an admin charge once they have evidence of dual insurance.

Davprice

I'be just been caught by the same thing - mobile phone insurance with Phones4U. I would suggest that this may not have started out as scam but it sure is now! Obviously mistakes get made - it's too easy to trip up. Secondly the sums involved are too big to ignore. Action needs to be taken. It is high time that all insurance policies were compelled by law to provide an annual summary of payments over the previous year and a notice that THIS POLICY IS GOING TO AUTO-RENEW. This must include the "30 day rolling contract" which has just fleeced me of £10 per month for 5 years. They last contacted me in 2013 - (though I have no recollection of this). It it was with "offers". Hardly the same thing as a clear notice that this is what you have paid and this is what you're going to lay if you do nothing.

dunstonh

It is high time that all insurance policies were compelled by law to provide an annual summary of payments over the previous year and a notice that THIS POLICY IS GOING TO AUTO-RENEW.

They are required to let you know. Problem is that most people "caught" dont read what they are sent.

This must include the "30 day rolling contract" which has just fleeced me of £10 per month for 5 years.

So, you didnt reconcile your banking for 5 years either?

rolling contracts are different to auto-renewal.

Spendthrif

I was recently caught in this situation. I took out a one year policy with igo4 and paid in full. I was not aware of or noticed the auto renewal when I got a renewal quote.

I took out a new cheaper policy with another company. I was away on holiday with no access to tech and got a notification from igo4 that I had not paid. I have spent the last month emailing and phoning and was told ther was an admin backlog; once they had evidence it would be resolved. It still hasn't been sorted. :j This is a mistake I will not make again.