Auto Renewal Home Insurance

Needhelp45

I wonder if anyone can help me?  I have a demand from my old insurer Quote Me Happy saying that they hadn't been able to take my payment (my card had changed) and had cancelled my policy and required a payment of £239 on this policy! I was unaware I signed up for auto renewal on this home insurance.  I never knowingly do this, because it's always far more expensive. I had secured a new deal with another company before the old expired.   I have sent a complaint saying I have a new policy and was unaware of auto renewal, wouldn't have knowingly signed up for it and that they hadn't provided me with cover, had t taken payment.  I checked the policy document and there is nothing in the Policy Document and the Important Information document about them being able to charge for a renewal that they couldn't collect payment for and have cancelled.  They may have sent notification about the renewal, but I can't find emails from them except last year's policy and this latest demand, maybe they did and it went into spam, or I may have deleted as I didn't expect auto renewal and had already organised a new policy.  Can they expect payment for a policy that I don't agree I agreed to when the payment failed.  I have told them I consider further demands to be phishing fraud and will be reported to the FSA and Insurance Ombudsman, but I really don't know if they have any grounds.

Linton

In my experience auto-renewal is standard for home insurance.  The effects of forgetting to renew could far worse than forgetting to cancel. In any case I would have expected them to have notified you beforehand.

Rather than getting stroppy I think you  would be better advised to apologise and let them know you have made other arrangements.

dunstonh

I was unaware I signed up for auto renewal on this home insurance. 

You don't need to be aware at the outset as its irrelevant at that point.

You are required to be told at renewal though.  Your renewal letter would have told you what to do next if you do or do not wish to renew the policy.  That is a requirement.  Not hidden in small text or in a glossy but in the actual renewal letter or email.

 I never knowingly do this, because it's always far more expensive.

Its not but that is irrelevant for this conversation.

They may have sent notification about the renewal, but I can't find emails from them except last year's policy and this latest demand, maybe they did and it went into spam, or I may have deleted as I didn't expect auto renewal and had already organised a new policy.  

They did.  We don't need to see it to know it because it is a long standing requirement.

Can they expect payment for a policy that I don't agree I agreed to when the payment failed.  

By default, you agreed to it by not following the instructions in the renewal notice.

 I have told them I consider further demands to be phishing fraud and will be reported to the FSA and Insurance Ombudsman, but I really don't know if they have any grounds.

FSA = food standards agency.     You mean the FCA.  However, the FCA do not consider consumer complaints as they are a regulator.  They would just forward your complaint back to the insurer.

The insurance ombudsman is actually the FOS.  You cannot raise a complaint to the FOS without going through the complaints process with the insurer first.

The bottom line is that you ignored your renewal letter/email and that is why you are in this position.   In most cases, insurers will not pursue you for the premium if you prove to them that you bought insurance elsewhere.      To avoid this happening again, you should read letters or important emails to see what they say.

Needhelp45

Thanks, I'm well aware I should have been more vigilant, I admit I had a lot going on, but my question was whether they can legitimately charge for a year's cover, which they are not providing, because they were unable to take payment and cancelled.

As far as I'm aware it's not a requirement that insurance companies auto renew, only that they should notify you. 

I don't agree that it's my fault for not acting on an email for a renewal that I didn't knowingly opt in to.  By that token anyone can entrap you into paying for anything.    In my personal experience of 35 years of multiple policies, it has always been cheaper to shop around. Hence why it is very relevant at the outset, as I do always opt out at the outset, if I'm made aware.  If there was no option to opt out, and auto renewal is not covered in my acceptance letter, policy details or other Important Information document, this is trying to obtain payment by stealth. 

FSA - financial Services Authority, which has ceased but yes should have been Financial Conduct Authority.

And yes I have already made a complaint to the insurer.

Needhelp45

Linton said:

In my experience auto-renewal is standard for home insurance.  The effects of forgetting to renew could far worse than forgetting to cancel. In any case I would have expected them to have notified you beforehand.

Rather than getting stroppy I think you  would be better advised to apologise and let them know you have made other arrangements.

Thanks, I was under the impression that they should give you the option to opt out and if not make it clear you are automatically opted in. If this had been so, I would have opted out from the start. It was also not noted in my acceptance letter, policy document or Important Information document. 

Maybe it's advisable to auto renew with car car insurance, but this is not the same case with house insurance and it should be a choice.

Unfortunately it's too late I have already got 'stroppy' and raised a complaint, notified them I had already made prior arrangements. 

 Personally I think it's reasonable to get 'stroppy' with a company trying to extort money out of me for something I did not knowingly request and they are not providing.  My question was really about whether it legitimate to request full payment for something they are not providing.

user1977

Why are they not allowing you to cancel?

dunstonh

but my question was whether they can legitimately charge for a year's cover, which they are not providing, because they were unable to take payment and cancelled.

Cancelling the method of payment doesnt cancel the contract.  So, a direct answer to that is yes they can.

As far as I'm aware it's not a requirement that insurance companies auto renew, only that they should notify you. 

Correct.

I don't agree that it's my fault for not acting on an email for a renewal that I didn't knowingly opt in to.  

You don't have to agree but it is.

In my personal experience of 35 years of multiple policies, it has always been cheaper to shop around. 

Its not a safe assumption though.   Plenty of times I have found its better to stay put.   And since the rule changes banning early year discounting, its less likely.

DullGreyGuy

Needhelp45 said:

I don't agree that it's my fault for not acting on an email for a renewal that I didn't knowingly opt in to.  By that token anyone can entrap you into paying for anything.    In my personal experience of 35 years of multiple policies, it has always been cheaper to shop around. Hence why it is very relevant at the outset, as I do always opt out at the outset, if I'm made aware.  If there was no option to opt out, and auto renewal is not covered in my acceptance letter, policy details or other Important Information document, this is trying to obtain payment by stealth. 

When you get to the buy page on Quote Me Happy you have to first select the payment method and immediately under that in bold big letters it says:

Automatic renewal of your policy

---

We will automatically renew your policy when the time comes. To do this, we will securely store your payment details and we will notify you at least 21 days before taking payment, should you wish to change or cancel your policy. If you do not want us to automatically renew your policy, you can opt out immediately after you purchase the policy and anytime in My account and we will no longer retain your payment details for this purpose. 

You have to scroll past the above to click the "continue to payment" button

Your 35 years experience is mainly irrelevant given the regulations changed in Jan 2022 on renewal pricing. 

It is very clear in their website that you are going onto auto renewal and their renewal letter/email is presumably equally clear 

You are focusing on the wrong thing here though... the cost you owe Aviva now is tiny compared to now having to tell insurers you've had a policy cancelled for non-payment! Have you informed your new insurers yet?

Needhelp45

DullGreyGuy said:

Needhelp45 said:

I don't agree that it's my fault for not acting on an email for a renewal that I didn't knowingly opt in to.  By that token anyone can entrap you into paying for anything.    In my personal experience of 35 years of multiple policies, it has always been cheaper to shop around. Hence why it is very relevant at the outset, as I do always opt out at the outset, if I'm made aware.  If there was no option to opt out, and auto renewal is not covered in my acceptance letter, policy details or other Important Information document, this is trying to obtain payment by stealth. 

When you get to the buy page on Quote Me Happy you have to first select the payment method and immediately under that in bold big letters it says:

Automatic renewal of your policy

---

We will automatically renew your policy when the time comes. To do this, we will securely store your payment details and we will notify you at least 21 days before taking payment, should you wish to change or cancel your policy. If you do not want us to automatically renew your policy, you can opt out immediately after you purchase the policy and anytime in My account and we will no longer retain your payment details for this purpose. 

You have to scroll past the above to click the "continue to payment" button

Your 35 years experience is mainly irrelevant given the regulations changed in Jan 2022 on renewal pricing. 

It is very clear in their website that you are going onto auto renewal and their renewal letter/email is presumably equally clear 

You are focusing on the wrong thing here though... the cost you owe Aviva now is tiny compared to now having to tell insurers you've had a policy cancelled for non-payment! Have you informed your new insurers yet?

You have no idea what was there when over a year ago, when I signed up using mobile. If I had seen it I would have immediately opted out.  The fact that I didn't means it likely wasn't that prominent at that time. 

This is supported by the fact that since my complaint Aviva contacted me very hastily, cancelled from renewal date and apologised "for the misunderstanding".  So clearly it wasnt a legitimate charge.  

Needhelp45

dunstonh said:

but my question was whether they can legitimately charge for a year's cover, which they are not providing, because they were unable to take payment and cancelled.

Cancelling the method of payment doesnt cancel the contract.  So, a direct answer to that is yes they can.

As far as I'm aware it's not a requirement that insurance companies auto renew, only that they should notify you. 

Correct.

I don't agree that it's my fault for not acting on an email for a renewal that I didn't knowingly opt in to.  

You don't have to agree but it is.

In my personal experience of 35 years of multiple policies, it has always been cheaper to shop around. 

Its not a safe assumption though.   Plenty of times I have found its better to stay put.   And since the rule changes banning early year discounting, its less likely.

Following my complaint Aviva contacted me very hastily, cancelled from renewal date and apologised "for the misunderstanding".  Judging by this I don't believe they could claim there was a contract or that it was a legitimate charge.  

Needhelp45

user1977 said:

Why are they not allowing you to cancel?

I don't know it was all very wierd.  They were saying they had auto renewed, because I didn't cancel before the renewal date, but because they couldn't take payment, they then cancelled, but wanted me pay the full years premium on a policy I didn't have. 

Following my complaint Aviva contacted me very hastily, cancelled from renewal date and apologised "for the misunderstanding". Judging by this I don't believe they could claim there was a contract or that it was a legitimate charge.