Stupid People Budget - Car Insurance

nomeansno_2

OK. In law, DD cancellation does not constitute contract termination. But then, I am not a lawyer, and cannot be reasonably expected to be. I think the intention was clear, and, as I have said, this termination method has always been interpreted differently by other insures. BTW I am actually talking about a house insurance policy - I jumped onto this thread because the nature of the policy did not seem relevant.

nomeansno_2

I would like to thank everyone who has responded to my posting. Your input has been most useful in helping me to organise my thought about this issue.
My position however remains the same: I believe it is immoral for Budget to seek to extend their contractual benefits from automatic renewal beyond the expected norm. Regardless of the legal enforceability of their claim for a cancellation fee in the circumstances I have described, I think they should do what all other insurers appear to do and simply accept the loss of a customer. That customer may then even return some day.

raskazz

nomeansno wrote: »

OK. In law, DD cancellation does not constitute contract termination. But then, I am not a lawyer, and cannot be reasonably expected to be.

No, you can't. But you certainly can be expected to (a) read the terms of the policy at inception and (b) read your renewal notice and take the appropriate action.

nomeansno wrote: »

I think the intention was clear, and, as I have said, this termination method has always been interpreted differently by other insures.

The intention isn't clear though. Unless you contact the insurer they have no idea whether the payment was cancelled due to a desire to decline the renewal or because or other problems with payment or the policyholder's bank account.

SandC

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

I take it you have not paid them any money for this period which the cover note stands for? I think that is what the £20 cancellation fee is about. You may not have to pay for the first month if you act quick and accept that you should have let them know you didn't want the policy. Usually if you cancel a policy part way through the year you don't get cancellation charges but you do pay, of course for the part of the year you have been insured for.

I think they are being quite good in the circumstances by only requesting £20. Grab this with both hands, safe in the knowledge that next time you will check the renewal notice.

losgiganteskid

tinkerbell84 wrote: »

Reading it, understanding it and then contacting them before renewal would have cost you nothing.

Apart from the premium rate phone number you would have been obliged to pay when phoning to cancel !! :think:

The auto renewal conundrum has been kicked to death on these forums. I introduced it to my Company to fall in line with the majority of the market, an aid to avoid unintentional lapsing of the policy by the policyholder and to enhance renewal retention

nomeansno_2

raskazz wrote: »

The intention isn't clear though. Unless you contact the insurer they have no idea whether the payment was cancelled due to a desire to decline the renewal or because or other problems with payment or the policyholder's bank account.

Whatever. DD cancellation DID result in immediate policy termination, but this was accompanied by a claim for an additional £90.00. I cannot see how either of your scenarios makes this acceptable behavior. Either Budget are exploiting a customer's failure to comply with the letter of the contract, or they are exploiting his financial distress.

tinkerbell84

losgiganteskid wrote: »

Apart from the premium rate phone number you would have been obliged to pay when phoning to cancel !! :think:

https://www.saynoto0870.com

raskazz

nomeansno wrote: »

Whatever. DD cancellation DID result in immediate policy termination, but this was accompanied by a claim for an additional £90.00. I cannot see how either of your scenarios makes this acceptable behavior. Either Budget are exploiting a customer's failure to comply with the letter of the contract, or they are exploiting his financial distress.

Or to look at it another way, they are doing exactly what they said they would do (a) in the contract and (b) in the renewal notice. Did you read the renewal notice? If not, whose fault is that?

losgiganteskid

tinkerbell84 wrote: »

www.saynoto0870.com

Well, that's ok then - provided Budget show this internet site on their renewal notice - somehow me thinks not !!

raskazz

losgiganteskid wrote: »

Well, that's ok then - provided Budget show this internet site on their renewal notice - somehow me thinks not !!

Thing is, 0870 numbers cost about 5p per minute evenings, or less at weekends (3p IIRC), so they're hardly 'premium rate'. I'm sure the adviser would call back a customer that politely asked him or her to.