Tesco Car - Automatic Premium Renewal

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
10 replies 6.4K views
Geoffo_MGeoffo_M Forumite
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edited 30 November -1 at 1:00AM in Insurance & Life Assurance
I received my Tesco car insurance renewal today, and was surprised that they had changed from asking me to ring up and renew the policy to one in which, if they didn't hear from me, they would automatically take the payment using the CC I gave them last year.

I don't like this at all. They hadn't asked my permission to change to this automated payments system. I don't like them storing my CC data, and I don't like the idea of having to ring them if I decide to shop around for cheaper insurance.

Anyone else been affected by this?

Replies

  • lilac_ladylilac_lady Forumite
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    I think if you pay by credit card you have to cancel the deal with the credit card company, not with the Tesco insurance company. If you don't cancel it will automatically take the payment.
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  • Pagan98Pagan98 Forumite
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    Yes, a number of insurers started doing this a few years ago - RBS Insurance (Direct Line et al) being one - they introduced a clause in the Terms & Conditions that allow them to take a Continuous Credit Card Authority and take the renewal premium automatically unless challenged. I also object to this, particularly given my aversion to CCCA due to the difficulties in positively cancelling them.
  • MikeyorksMikeyorks Forumite
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    lilac_lady wrote: »
    I think if you pay by credit card you have to cancel the deal with the credit card company, not with the Tesco insurance company. If you don't cancel it will automatically take the payment.

    As post #3 - it's a 'continuous authority'. You can't cancel it with the CC company - you have to do it with the company (in this case Tesco) holding the 'authority'. Sensibly you do it in writing - and avoid entering one if at all possible.
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  • swanny65swanny65 Forumite
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    Budget is another one using automatic renewal. Took me 3 calls to get it removed with written confirmation from Budget.....
  • schizometricschizometric Forumite
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    I just rang them up (Tesco) and said I wasnt happy about them renewing it and wanted to go with direct line. Said they'd offered me a quote for 470 (but didnt specify what for ;) it actually didnt include my partner, direct debit monthly, OR breakdown but this is what they gave me for £470!)

    So quite chuffed :D saved meself about £150 I think. Just a shame I didnt say £420 really.. :p or £350, but I suppose you cant get ridiculous otherwise they MIGHT check up.

    Also, he did say when I renewed it that it will be automatically renewed unless you ring up to cancel. I presume this was the case last year when I paid in a lump sum too. I don't like it but guess it's easy to remember to call them if you're aware of it, once they send the letter out to you.
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  • Geoffo_MGeoffo_M Forumite
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    I've cancelled my Tesco policy today. They asked why and I told them I didn't like the automatic renewal system. They didn't sound surprised. You're right, there are several operating in this fashion now; I found Barclays, Prudential and Churchill also. In the end, I've moved to Co-op (CIS). They told me they do not operate automatic renewal and do NOT hold on to credit card details. Reasonable quote as well, turned out less than Tesco Value

  • raskazzraskazz Forumite
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    Virtually all insurers are happy for you to opt out of automatic renewal if you request to at inception of the policy.
  • C_RonaldoC_Ronaldo Forumite
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    Why not just phone up before the years insurance is due for renewal
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  • anna42hmranna42hmr Forumite
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    I just rang them up (Tesco) and said I wasnt happy about them renewing it and wanted to go with direct line. Said they'd offered me a quote for 470 (but didnt specify what for ;) it actually didnt include my partner, direct debit monthly, OR breakdown but this is what they gave me for £470!)

    .
    to be fair, they probably did that as a gesture of good will, rather than because of your threat to move to direct line, as tesco and direct line are all brand names of RBS Insurance (along with churchill, privilege prudential, NIG, UK Insurance, and various other brandings such as virgin insurance etc)
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  • Sparky29Sparky29 Forumite
    285 Posts
    I got stung £112 by the AA for road side assistance in the same way. When I took out the policy it had a massive introductory offer but the premium jumped massively the following year. They refused to refund me as I didn't realise that my credit card had been billed until too late :mad: More companies are doing this now. Beware!
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