car insurance

smudger1946

Hi All, Happy 2008,
Last year i had motor insurance with a company, on re-newal this year they tried to take this years payment from the c/c i used last year, which has since been changed.
For some reason or another they wanted me to pay insurance although i told them i was going with another company, now i have just got a demand from a credit recovery company demanding payment.
The insurance company name, the recovery people are working for have a different name than the one i was insured with, although they have my address correct.
Any ideas what to do, my first thought was to bin it, but it may come back and bite my !!!!.
With thanks Smudger

nickmack

smudger1946 wrote: »

For some reason or another they wanted me to pay insurance although i told them i was going with another company, now i have just got a demand from a credit recovery company demanding payment.

Do you have details of when you notified them you were cancelling the policy? A letter/details of the person you spoke to?

The insurance company name, the recovery people are working for have a different name than the one i was insured with, although they have my address correct.
Any ideas what to do, my first thought was to bin it, but it may come back and bite my !!!!.

Don't ignore this, tell the recovery company you are disputing the amount and ask them to refer back to the insurer. You then need to provide proof that you cancelled the policy and and get this sorted.

Geoffo_M

Many have been caught by the automatic renewal that some insurance companies are using now. They are trying to catch those who don't realise it is an automatic renewal, shop around and purchase from another company. It's a sort of legal scam really. There's another thread here http://forums.moneysavingexpert.com/showthread.html?t=657253

raskazz

Geoffo_M wrote: »

Many have been caught by the automatic renewal that some insurance companies are using now. They are trying to catch those who don't realise it is an automatic renewal, shop around and purchase from another company. It's a sort of legal scam really. There's another thread here http://forums.moneysavingexpert.com/showthread.html?t=657253

Hang on.

I'd like to know how it is a 'scam'.

The policy documents issued at inception will state that the policy operates on an automatic renewal basis with continuous payment authority. The renewal notice will also state on the first page something along the lines of "Here is your renewal premium - you do not have to do anything".

Most policyholders are happy to have this facilty or opt out if they are unhappy with automatic renewal. It is also worth mentioning that automatic renewal helps prevent uninsured driving.To label policyholders not reading renewal notices a 'scam' on the part of insurers is a bit wide of the mark IMO.

losgiganteskid

It's a double edged sword Smudger - the insurer for their part will state it's an aid to you the policyholder as at renewal you do nothing - all is wonderful in the world and renewal is taken care of as if by magic - you have to "opt out". The flip side is that it's a hell of an aid to the insurer as I can confirm renewal retention by a company where auto renewal exists is quite a few percentage points higher than where it doesn't.

The are other not so well known renewal retention ploys, all of which have been tried and tested over the years, even down to the period between which your renewal notice is received by you and the renewal date, and even the day of the week the renewal notice drops on your doormat !!

The interesting question would be to ask at inception "would you like us to automatically renew your policy taking the premium from the same credit/debit card you used to pay for your cover?" - I bet you won't find that being asked as a specific question - for obvious reasons.

I'm neither for it or against it - depends whether your batting for the insurance company or the policyholder

Geoffo_M

raskazz wrote: »

Hang on.

I'd like to know how it is a 'scam'.

The policy documents issued at inception will state that the policy operates on an automatic renewal basis with continuous payment authority. The renewal notice will also state on the first page something along the lines of "Here is your renewal premium - you do not have to do anything".

Most policyholders are happy to have this facilty or opt out if they are unhappy with automatic renewal. It is also worth mentioning that automatic renewal helps prevent uninsured driving.To label policyholders not reading renewal notices a 'scam' on the part of insurers is a bit wide of the mark IMO.

You are probably right "scam" is a bit strong as you can find it mentioned buried deep in their t&c's. But as it can be contentious for some, it should be made plainer when applying for insurance - especially about retaining your credit card details in their system. For me, it's similar to the headline savings rate, which is immediately lowered once they've got your cash. Halifax did that to me once and it leaves a bad taste; I'll never use them again

lisyloo

But as it can be contentious for some, it should be made plainer when applying for insurance

But you also get a renewal notice though don't you?

So you have to fail to read both the initial documentation and ignore the letter that says they are going to renew your policy?

smudger1946

main point is whats my best way out of this? we are talking £165 for nothing as it stands

raskazz

smudger1946 wrote: »

main point is whats my best way out of this? we are talking £165 for nothing as it stands

Raise a complaint to the insurer in writing, enclosing proof that you have been covered elsewhere. Acknowledge that you did forget to lapse the policy, but state that given you have been covered elsewhere since the renewal date (I presume), you will not pay anything except a reasonable administration fee for cancellation effective from the renewal date.