automatic renewals - motoring, travel etc

glosmgc

I am absolutely infuriated by the policy now adopted by most insurers of automatically renewing policies unless the policyholder contacts them before the renewal date to instruct otherwise.  This places the onus clearly on the policyholder - if you fail, you WILL be charged.
Trying to contact insurers these days is a nightmare.  Remember YOU are paying for the call just to say "I don't want to renew".  I have been kept hanging on, listening to annoying music for up to 45 minutes, receiving constant apologies - "due to coronavirus".   There is seldom the option to e-mail - they don't like that. Even before you are allowed to talk to someone, you are forced to listen to relentless gibberish about terms and conditions - all the time YOU are paying to listen.
I have now reached the decision  that I won't use the telephone. Instead, I will send a postal instruction to cancel BY RECORDED DELIVERY. I know that costs, but I don't have to stay hooked-up to the phone until someone decides to answer.
Best of all, use a local Insurance Broker - let them compare the market for you.

HappyHarry

A lot of people would find it far more frustrating for their insurance to lapse and for them to be unintentionally uninsured. Hence many insurance companies now tend to automatically renew unless the client requests otherwise.

davidmcn

glosmgc said:

Remember YOU are paying for the call just to say "I don't want to renew". 

You can generally use a (free) sales line to do this, even if it's not the number they point you towards.

lisyloo

I have never found this difficult.
i diarise the event one month before which is when I’d want to shop around.
yesterday I cancelled one by chat (I have the transcript). I always get some form of proof e.g. email confirmation or transcript.

personally i don’t find it a big deal to have the phone on speaker whilst I’m washing up, doing email, hanging up the washing etc.

But as you say you have the option to write snail mail or use a broker so what’s the issue?
you don’t like the way they run their business during a pandemic?
so what perhaps the safety of their staff is more important right now??

dunstonh

I am absolutely infuriated by the policy now adopted by most insurers of automatically renewing policies unless the policyholder contacts them before the renewal date to instruct otherwise.  This places the onus clearly on the policyholder - if you fail, you WILL be charged.

As much as I do not like auto-renewals, I do not get infuriated by them.   Most people renew.  So, it fits the need of the majority and results in lower costs which policyholders who do check prices each year get to benefit from.  Plus, as has been seen on this site a number of times, many people cannot be trusted with their finances.   For every person that moans about auto-renewal, there is another that has been saved trouble because of it or, as is often the case, they thought they had auto-renewal when they didnt and then found themselves uninsured when stopped by the police or suffered a claimable event.

Remember YOU are paying for the call just to say "I don't want to renew".  I have been kept hanging on, listening to annoying music for up to 45 minutes, receiving constant apologies - "due to coronavirus".  

That is not the norm.  Most people are accepting of issues caused by coronavirus.

There is seldom the option to e-mail - they don't like that.

It is insecure and open to abuse.

 Even before you are allowed to talk to someone, you are forced to listen to relentless gibberish about terms and conditions - all the time YOU are paying to listen.

Because we live in a nanny state where the ombudsman treats everyone is if they are stupid and need protecting from themselves.

I have now reached the decision  that I won't use the telephone. Instead, I will send a postal instruction to cancel BY RECORDED DELIVERY. I know that costs, but I don't have to stay hooked-up to the phone until someone decides to answer.

It will cost more than the phone call.  Indeed, with many phone packages, the call costs nothing.

TELLIT01

I can see the sense in auto-renewal for car insurance, because it's illegal to drive without insurance.  For house insurance the argument for auto-renewal is less strong, and in my mind there is absolutely no justification for auto-renewal of travel insurance.

lisyloo

TELLIT01 said:

I can see the sense in auto-renewal for car insurance, because it's illegal to drive without insurance.  For house insurance the argument for auto-renewal is less strong, and in my mind there is absolutely no justification for auto-renewal of travel insurance.

Ok your opinion, but business are entitled to operate as they wish yes?
and if you don’t like their mode of operating you are free to go elsewhere yes?
Personally I’ve never had an issue with it so whilst I’d prefer not to have it I find it one of life’s minor inconveniences.
almost all businesses make it easy to buy than to cancel, it’s a reality of life.
i think it’s just something people need to accept and  find a way of dealing with.
it surely trivial to set up some kind of alert these days.

i don’t work in insurance or finance but for balance I think it’s worth considering that prices would rise if we didn’t have auto renew (it’s a shame I feel I have to proactively defend against claims of bias when proposing an unpopular idea).

Sandtree

TELLIT01 said:

I can see the sense in auto-renewal for car insurance, because it's illegal to drive without insurance.  For house insurance the argument for auto-renewal is less strong, and in my mind there is absolutely no justification for auto-renewal of travel insurance.

There is a fairly strong argument for most cases... the majority of people live in a property they own with a mortgage and buy combined buildings and contents home insurance... almost all mortgages require you to hold buildings insurance. Ok, its not "illegal" not to have it but could run into issues with the bank. Similarly Pet, Travel and PMI insurance have concepts of "pre-existing" which are not an issue with continuous cover but may become a problem if the policy lapses and you have to buy a new policy.

Being realistic, whatever route a company takes it'll suit some more than others. The FCA are generally supportive of auto-renewal as the majority do just roll over their policies and we all share in the benefit of cost reductions that not having to outbound every renewal creates. 

antigouge1

I can see the sense in the above arguments, BUT (and it's a big 'but'), I have just been charged more than triple the price I paid in the previous two years by the inappropriately named 'Get Safe' insurance company. This is not 'auto renewal' - let's call it by its proper name a RIP OFF. 
Of course, I am now in dispute with these people: so far, they have been impossible to contact by telephone,do not reply to emails and their 'app' will not allow me access or even send a passcode. 
Other companies have the honesty to send a reminder  - especially if the premium has been increased. 'Get Safe' have not done so. 
The obvious question is: what do you think would happen if you actually made a claim?'

DullGreyGuy

Insurance companies are obliged to send you a renewal notification if they are offering terms however saying you didn't receive one is not the same as saying they didnt send one. Overzealous  spam filters, improper handling by posties, not having notifications turned on etc can all result in one being sent but not received. 

Not sure why you dug up a 4 year old thread rather than start your own but as has been commented above, there are many on here who've been saved from their own forgetfulness by auto-renewal and several who've had big losses not covered because they weren't on auto-renewal and forgot to buy. 

So what actually happened in your case? Sounds like you forgot about your renewal and so had that happened and they didnt auto-renew it you would have been uninsured, a significant risk for Home insurance and a criminal offence for Car insurance. 

Rather than rant about something that appears to have saved you from yourself I'd suggest you get better at diary management so you aren't reliant on receiving a reminder from your current insurance company.

prowla

I did get caught out by an AA auto-renewal, where they whacked up the fees.

I called and spoke to them and the first respondant said it was a business decision so I had to accept it.

I persisted and told them I was not happy about it and wished to cancel my (30 years!) membership.

They refunded me the difference.

I've disabled the auto-renew.