Car Insurance Renewal

Josh1994

Hi,
My car insurance is up for renewal shortly (29th).
I am looking to switch provider. I am with esure currently. 

Esure have taken payment for the next year's insurance already, three days before the renewal date.

If I decide that I want to switch, as the new policy has not begun, are they able to charge a cancellation fee? Their live chat does not work and I can't get any answers through the chatbot. You have to speak to someone to be able to cancel the automatic renewal which I thought was rubbish. 

Thanks

DullGreyGuy

Are you sure they've actually taken payment and its not just an authorisation (shows as a pending)?

What does your renewal say? Sounds like its on autorenewal and so it should have given instruction on how to inform them to allow the policy to lapse. 

MalMonroe

Hi, in my experience (40 driving years) it's fairly standard to have to phone insurance companies if you don't want the auto renewal. If they have taken it early that means that your last year's insurance policy is still active - only if you leave it until after the 29th might they try to make you pay a cancellation fee. If they try to make you pay a fee then do argue with them. 

But they usually contact customers about a month in advance to alert them to the fact that the policy will auto renew. Didn't you receive any notification? That's the time I always phone them and tell them that I'm leaving because their price is too high. They always, without fail, immediately say 'let's see what we can do for you'. 

And they can always do much better.

Phoning them really works to your advantage far better than any chatbot could anyway. It's worth it.

Just phone them. Then you can tell them that they've taken the money early, you didn't want to renew and ask them what they can do to keep you as a customer. To be honest, if I ever want to switch, I usually start looking earlier than two days prior to the date of expiry of the policy. It's not too late now but I like to know what's available out there. Then when I phone my insurance company I can say 'I can get a much better deal with ... (whatever company)'. If Esure can give you a better deal, they will refund the difference between the auto renewal and the renegotiated price. Well they should do, anyway. 

Good luck! I have related my own experiences above but I've always obtained a better deal, just by phoning the insurance company and being polite but firm. (Always polite, obviously.) 

frankersBri

FCA regulations say: "A firm must provide a consumer with easy and accessible methods for cancelling the automatic renewal feature in the consumer’s contract.
(1) The methods provided by a firm in accordance with ICOBS 6A.6.3R must include at least all the methods by which a consumer is able to purchase a new policy with the firm.

(2) A firm must consider the needs of its customers when determining what cancellation methods it provides."

So, if you purchased your original policy online, they need to allow you to cancel it in an online way. Their website indicates you can do it via live chat as well as the phone: https://help.esure.com/article/qed916784/if-i-decide-to-automatically-renew-my-policy-can-i-opt-out-of-doing-that

But, you also would probably have to give then more than 1-2 days notice; you'll have to check your documentation and presumably as your renewal date is tomorrow they've already got the direct debit processing to be taken on Monday..