Stupid People Budget - Car Insurance

peterae

Firstly Thanks for Money Saving car insurance Tips it saved me £55.

I swapped from Budget insurance because thier renewel quote was way over the odds., Trouble is today i had a new cover note come through from them for a period of one month, i was quiet surprised at this as i have had no communications with them apart from this overly expensive quote which went stright in the bin.

Having just rung them they said that my old policy was automatically renewed and that if i want to cancel i need to pay a £20 cancellation fee, i have never asked or been made aware of an auto renew situation on my old policy. It would never occur to me it was possible.

Can this be right, i have never had this with anyone else in the past.

How do i stand.

Thanks
Peter

mattymoo

Just found this on a quick search - http://forums.moneysavingexpert.com/showthread.html?t=688499&highlight=budget
also
http://forums.moneysavingexpert.com/showthread.html?t=572621&highlight=budget
Try searching for Budget, Automatic Renewal, Cancellation

purplestar133

It seems like lots of insurers are doing automatic renewal now. It's usually buried somewhere in the terms and conditions.

FlameCloud

Those would be the terms the OP couldnt be bothered to read...

peterae

Hi
Thanks for all your help.
I never new that this existed and having now read the renewel quote which i fished out the bin, it says all you need to do is sit back and do nmothing and your policy will be automatically renewed, so they have me by the short and curleys, looks like i have to pay a cancellation fee, and possibly the time that the policy has been in use.

I will be more carefull in the future and sugest that anyone check their existing policy very carefully for this clause.

I feel like i have just been robbed at gun point.

Peter

mattymoo

The alternative though is that you forget to renew, your policy will lapse and your details will be removed from the Motor Insurers Database.
That means you will be pulled over by Police with ANPR cameras and prosecuted for not having insurance - 6-8 points plus fine plus huge jump in future premiums.
No doubt you would complain then as well. What would you prefer insurers to do?

peterae

Hi mattymoo
This would not happen as i now have 2 policys running, does that mean i would get 2 loan cars and 2 insurance companys willing to pay for my car to be repaired if i have an acident, I dont think they would do that do you.

The most annoying thing is that they havnt even tried to get me a good renewel quote infact looking at their quote it is £80 more than the policy i went for and was not as good a cover, and now i understand why their renewel quote was high because they new that if it wasnt contested it's automatically acepted, in my book this is DAY LIGHT ROBBERY.

Peter

purplestar133

The horrible fact is that they're never going to try and get you a good renewal quote. They just want to make money. They don't reward loyalty, it's the new customers that get the best prices.

djohn2002uk

This is another way insurers get some reimbursment for offering cheap cover. You get what you pay for.
I've never gone for the cheapest option and I don't get a rolling contract (because I chose otherwise when they asked me), I don't get ripped off with admin charges when I change my car (in fact I get 14 days overlap on both cars) or move house or add another driver. Buy cheap and you get cheap.

tinkerbell84

peterae wrote: »

Hi
Thanks for all your help.
I never new that this existed and having now read the renewel quote which i fished out the bin, it says all you need to do is sit back and do nmothing and your policy will be automatically renewed, so they have me by the short and curleys, looks like i have to pay a cancellation fee, and possibly the time that the policy has been in use.

I will be more carefull in the future and sugest that anyone check their existing policy very carefully for this clause.

I feel like i have just been robbed at gun point.

Peter

So you didn't read the renewal, but it's the insurers that are stupid??

Are you sure you're observant enough to be driving at all? :rolleyes:

peterae

Car insurance isnt cheap, i have 10 years NCB and yet every year i pay what seems to be an ever increasing premium, i didnt know they started a new policy using auto renewal untill 4 days after they started the policy, which is rather done deliberatley so you have no choice but to pay a cancellation fee. IT IS DAY LIGHT ROBBERY
I have a bottle of milk in the fridge that the good by date expires tommorow, but it doesnt mean the dairy are going to charge me for a new one when it runs out
If something expires you dont expect to find a bill on your doorstep 4 days later do you, what if the milk carton says on the bottom if you dont ring us before the expirary date we will charge you for another, and if you dont want it we will charge you to take it back.
The only difference between the two is the fact that the insurance company have your credit card details, this also amazes me how have they charged my card for the policy as my old card expired during the year and i have a new card which has a new expiry date.

Peter