Automatic insurance renewals

scrummy_mummy_2

Surely companies who keep your credit card details on file and automatically opt you in to their renewal process are in breach of the information commission rules and the Data Protection Act??

This appears to be a new process the insurance companies have adopted, pressumably to stop us savvy consumers prostituting ourselves annually to get the best insurance deals. When you take out a new poilcy now, they will automatically sign you up to an automatic renewal scheme. They will keep the bank details/info/credit card details you used to purchase your policy an file and will use these (or attempt to) to automatically renew your policy the following year....unless you ring them (on an 0870 number!) to tell them to opt you out.
If you do nothing and cancel/renew your card so they can't use the details, they send you a letter saying that they are going to renew your policy anyway, and then charge you a fee to cancel it!...obviously, you have to be the one to take action and ring the 0870 number to tell them not to.

Surely this cannot be legal?
Anyone any thoughts?
I have no intention of playing their little games and have used the saynoto0870 website to find their freecall number and rung them to opt out, and am happy to go to court to face them off if necessary but it can't just be me this upsets!

Altarf

scrummy_mummy wrote: »

Surely this cannot be legal?

Yes it is.

scrummy_mummy wrote: »

Anyone any thoughts?

a. Read the contract before you sign it.
b. Never, ever, ever, sign up to a continuous credit authority.

scrummy_mummy_2

I did read the contract as soon as I got it...however...no mention of an automatic renewal procedure is mentioned in the documentation you fill in when you are applying for the insurance in the first place.
All the insurers are now doing this automatic renewal process now (so it seems) so I can't vote with my feet. I never pay by instalments, just a one off payment at the time I take out the policy....they will still keep my card details on file to renew next year....not on my watch!

tinkerbell84

scrummy_mummy wrote: »

Surely companies who keep your credit card details on file and automatically opt you in to their renewal process are in breach of the information commission rules and the Data Protection Act??

Nope. There are rules about how they are allowed to keep them, and they aren't allowed to keep the security code off the back, but the law allows them to keep them.

And they do tell you in the documents they send you.

pborojon

Insurers just can't win, if they lapsed your policy as you forgot to tell them to renew and you had a claim would it be their fault for not auto renewing? Of course they do it for their own means but in the age of the Motor insurance Database etc they have very little choice and surely it is better to be safe than sorry?!!

brummiedevil

I work for an insurance company and you do have the option of opting out of automatic renewal. Also under the FSA regulations insurance companies have to tell you of any cancellation fees and rates that they charge - it is also within the insurance documents.

One thing worth knowing though - When insurance companies charge short term rates - if they charge the whole amount of the policy and then charge a cancellation fee on top it is actually against FSA rules. You may have to pay the cancellation fee first but if you write in and complain it should be refunded straight back to you as if the FSA take on the complaint it costs the insurance company £400 whether they win it or not.

losgiganteskid

Automatic renewal is a double edged sword, and depending on which side of the fence you sit (either the industry or policyholder) people will have their own views.

There is a huge financial benefit to the insurer as (with my Company) renewal retention is increase by many percentage points since automatic renewal was applied.

This topic has been aired many times on this forum (and doubtless on many others) - these policyholders have voiced their opinion, there must be many more who have been surprised to find their policy has been renewed with them having to do nothing who do not go to the trouble of voicing their anger on forums such as these.

If enough policyholders complain it may (only may) route the industry to ask the question at the time the policy is incepted. Easy really "Do you wish your policy to auto renew or auto lapse" Tick appropriate box

pborojon

It has very little to do with renewal retention, it is much more to do with complying with MID regulations.

losgiganteskid

pborojon wrote: »

It has very little to do with renewal retention,

Well - if you say so !!

pborojon

sorry didn't mean to be flippant.

scrummy_mummy_2

losgiganteskid wrote: »

Automatic renewal is a double edged sword, and depending on which side of the fence you sit (either the industry or policyholder) people will have their own views.

There is a huge financial benefit to the insurer as (with my Company) renewal retention is increase by many percentage points since automatic renewal was applied.

This topic has been aired many times on this forum (and doubtless on many others) - these policyholders have voiced their opinion, there must be many more who have been surprised to find their policy has been renewed with them having to do nothing who do not go to the trouble of voicing their anger on forums such as these.

If enough policyholders complain it may (only may) route the industry to ask the question at the time the policy is incepted. Easy really "Do you wish your policy to auto renew or auto lapse" Tick appropriate box

Who should we complain to? I've already complained to the insurers when i have rung them to opt out...but they just retor like drones...."It's our policy"
I've also complained to my credit card issuer that they need to address this and plan to just cancel my card each October to stop the insurers taking any money.
All I want is to be given the option at the time I take out the policy whether I wish to opt in or out of automatic renewal...I find it offensive that I am pressumed stupid by the insurance companies and, as such, the insurance companies are opting me in by default for "my own good"! in case I forget to renew my policy!!! Egads! I have nver forgotten to renew my insurances in 30 years because I am not dim nor disorganised, not do I fail to read (in all it's small detail!) my policy (of which I hold many for various business reasons) and I certainly don't need them to metaphorically hold my hand. If I am uninsured and my house burns down...tough! My fault....even if I am insured and my house burns down they won't flippin pay without a fight anyway!
I do not expect to incur additional charges (calls to 0870 numbers) to be able to opt out nor incur the extra time expense necessary to do this either.

They are profiteering B******s and have no interest at all in my welfare and I am not stupid enough to believe their propaganda that they are keeping my details on file to automatically renew my policy for any other reason than their own financial gain.
B******s
Rant over.
Thanks for listening/reading...I will bear your comments in mind everyone and consider my next action carefully given that I probably can't beat them outright but can be obstructive within the framework of their "policies".