Motor insurance renewal warning

TeachersPensionNovice

bluelad1927 said:

I'm guessing this is a repost of 'RAC scammers' when clearly they weren't scamming anyone?

Yep, it's that. Not allowed to put those two words together.  Hopefully, there's enough context in your post to prevent this thread getting deleted again.

TeachersPensionNovice

Thanks for everyone's posts on this. Even the ones that say it's my fault, which it largely is. One thing I've learned is that you can't use auto renewal for something as important as car insurance.

TeachersPensionNovice

Aretnap said:

bluelad1927 said:

I'm guessing this is a repost of 'RAC scammers' when clearly they weren't scamming anyone?

Oh, the notion that it's part of a nefarious scheme to extort more money from the OP is obvious nonsense. C*ck-ups are far more common than conspiracies, and in any event insurance companies rather like auto-renewal as it encourages customers to renew unthinkingly rather than move - it's auto-renewal l, not the absence of auto-renewal, which enables them to boost premiums.

However the fact that it's not a scam doesn't mean that the insurance company have done everything right or that the OP has no grounds for complaint.

For the best chance of a successful complaint put your point firmly but politely, avoid emotive terms like "scam" or suggestions of vast conspiracies - stick to saying clearly and concisely what you think the insurance company has done wrong and what you would like them to do to put it right. Be realistic about the last point eg ask them to refund you the difference between your original renewal premium and whatever you ended up paying - don't demand a million pounds in compensation.

Very good post. I'm not going to ask for compensation. Just a commitment to better warnings. I got multiple when it was too late to renew. I was lucky that I had time to find a better deal. Not everyone will have that luxury. 

lisyloo

TeachersPensionNovice said:

Thanks for everyone's posts on this. Even the ones that say it's my fault, which it largely is. One thing I've learned is that you can't use auto renewal for something as important as car insurance.

I use icloud with different colours for different calendars - for example the rubbish collection dates are in yellow, birthdays in red.
Then I can turn different calendars on and off so I don't have to see the rubbish collection if I'm looking at my social calendar.
I keep all my insurance/service/MOT/fixed deal ending/payment date/Annual direct debits in a "Financial calendar" which is backed up to icloud.
If you are doing DIY this is your responsibility although they did send a renewal letter in 2). It may have been paragraph 4, but you are meant to read your post.
Traditionally, before computers, decades ago we used to use brokers.
Most people now do DIY without realising that some of the responsibility falls to them.
I've never found it difficult to establish from a renewal letter whether they are renewing or not.

HillStreetBlues

DullGreyGuy said:

HillStreetBlues said:

It won't be anything to do with CC, as the letter saying it won't auto-renew came a month ago, they would only try and take payment on start date of new insurance.

It certainly can be to do with the CC.

Before taking a reoccurring payment under a CPA a merchant is required to run the card updater service which gives one of three responses - 1) proceed with existing card number, 2) proceed with this new card number or 3) dont proceed and a reason code.

When a former client introduced the card updater service they set it to run before the renewal letters were generated because the auto-renewal letter would state "if you dont do anything we will renew your policy and apply the charge to card ending 1234". As such they wanted to update the card number should the response from the service be a new card number.

Similarly if the response was option 3 then auto-renewal was stopped and the customer informed they need to contact us to accept the renewal as we had no billing details. 

OP stated "it's possible my credit card company had something to do with it"
What you are talking about is what the insurer might to.
The CC might be declined by the company for some reason,  then it could be to do with the CC  but they won't do that till time of renewal.

TeachersPensionNovice

The insurer wasn't able to say why auto renewal was turned off. They didn't attempt to charge my card. My credit card provider changed bank, and hence credit card number, during the year. I thought I'd updated my accounts that used it, but I may have missed this one. I can't tell now as I can no longer see what credit card they have registered. Either I missed it, and auto renewal was turned off because of that, or I did update it and the process of adding a new card turned off auto renewal. Either way, I didn't receive any notification that auto renewal had been turned off. Yes, I know, if I had called when they asked, they probably would have told me.

DullGreyGuy

HillStreetBlues said:

DullGreyGuy said:

HillStreetBlues said:

It won't be anything to do with CC, as the letter saying it won't auto-renew came a month ago, they would only try and take payment on start date of new insurance.

It certainly can be to do with the CC.

Before taking a reoccurring payment under a CPA a merchant is required to run the card updater service which gives one of three responses - 1) proceed with existing card number, 2) proceed with this new card number or 3) dont proceed and a reason code.

When a former client introduced the card updater service they set it to run before the renewal letters were generated because the auto-renewal letter would state "if you dont do anything we will renew your policy and apply the charge to card ending 1234". As such they wanted to update the card number should the response from the service be a new card number.

Similarly if the response was option 3 then auto-renewal was stopped and the customer informed they need to contact us to accept the renewal as we had no billing details. 

OP stated "it's possible my credit card company had something to do with it"
What you are talking about is what the insurer might to.
The CC might be declined by the company for some reason,  then it could be to do with the CC  but they won't do that till time of renewal.

But it stems from the Credit Card Company because they are the one that feeds into the Card Updater service that the CPA payment is not to be taken. Like if the CC had closed the account on a Visa card the Insurer would get a code C or 02 if the customer has switched from Visa to Mastercard

born_again

Sea_Shell said:

This happened to us a few years ago.  (well similar)


* ETA - OP, maybe that's why your AR got turned off, because they DID check and the card had expired?   Could that be the reason?

Sadly not,
I have seem CPA's still coming through 8 years after a card had expired.
Visa/Matercard has update systems that allow retailers to request the new card number (if subscribed) Which is why the advice to stop a card does not work on these payments...

Only way bank would turn this off, & it is retailer specific on the system. Would be if they were contacted by account holder to stop that payment.

Sea_Shell

born_again said:

Sea_Shell said:

This happened to us a few years ago.  (well similar)


* ETA - OP, maybe that's why your AR got turned off, because they DID check and the card had expired?   Could that be the reason?

Sadly not,
I have seem CPA's still coming through 8 years after a card had expired.
Visa/Matercard has update systems that allow retailers to request the new card number (if subscribed) Which is why the advice to stop a card does not work on these payments...

Only way bank would turn this off, & it is retailer specific on the system. Would be if they were contacted by account holder to stop that payment.

Well, the system broke for us.   Card details unaltered (other than the expiry date*) and auto renewal definitely turned on.

*Which was the reason they gave when DH complained.

Was probably well over 5 years ago now.  So maybe things have changed.

Or they genuinely did stuff up 🤔.  ISTR they did apologise for the lack of communication.

tifo

Most people would check their policy before it is due to expire then check other prices to compare, in checking their policy it would be clear if it was set on auto renew as they wouldn't want to pay the insurer more than they can get it elsewhere.