Automatic insurance renewals

pborojon

As you're so organised why not phone them 5 days or so prior to your renewal to inform them you don't wish to renew?

dunstonh

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. Data protection does not prevent companies keeping data that is pertinent to their business.

This appears to be a new process the insurance companies have adopted

Not really. Its been around a long time but many of the "old" names dont do it.

pressumably to stop us savvy consumers prostituting ourselves annually to get the best insurance deals.

savvy consumers check what they sign before doing anything.

Surely this cannot be legal?

Why?

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.

Auto renewals are documented in the t&c of the policy. Also, when the renewal letter arrives it tells you to contact them if you do not renew.

All the insurers are now doing this automatic renewal process now (so it seems) so I can't vote with my feet.

No they are not.

lisyloo

All the insurers are now doing this automatic renewal process now (so it seems) so I can't vote with my feet.

I have NEVER had an automatic renewal in nearly 23 years of driving (and sometimes having 2 policies - bike and car) so you can vote with your feet.
Last year I was with AA (fortis) for car and ebikeinsurance (Southern Rock) for bike.

Obviously you may find that the policies that offer this may not be the absolute cheapest (although I do shop round so they were cheapest for me).
Sometimes it can be a trade-off.
So (for example) you might choose to take a cheaper policy and put a note in your diary or personal organiser to cancel before automatic renewal.

My advice (not aimed at anyone in particualr) would sum up as

1) Always be aware of what you are signing up to
2) Get organised with a spreadsheet/diary/organiser
3) NEVER sign up to a CCA.
4) Make sure you get an acknowledgement for important things and/or send by recorded delivery if warranted (70p).

I'm not being snug (well maybe a little :-) but will a modicom of organisation I've managed to avoid a whole load of hassle that less organised people have succombed to.
Just recently I was able to dispute a demand for money as I have an acknowledgement of cancellation and a stamped proof of posting for a return so I have confidently refute the demand. It wasn't that difficult to get a proof of posting and get a receipt, but it has saved me a load of grief.

raskazz

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??

Not at all. Care to post a link to the relevant piece of legislation that you believe it is in breach of?

scrummy_mummy wrote: »

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.

The majority of private car insurance policyholders do renew, commonly around 70% or more. So for the majority of policyholders it is the most convenient available process. You can opt out of the the automatic renewal anyway, so it does not 'prevent' you from doing anything. Automatic renewals do also help to reduce inadvertent uninsured driving.

scrummy_mummy wrote: »

When you take out a new poilcy now, they will automatically sign you up to an automatic renewal scheme.

'They' don't sign 'you' up to anything - you agree to the terms offered.

scrummy_mummy wrote: »

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.

You can normally decline a renewal or opt out of automatic renewal in writing if you wish. In any case, 0870 costs 6p per minute from a BT line IIRC. Hardly going to break the bank.

raskazz

pborojon wrote: »

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

I'm sorry but this is not correct. Could you provide a link to the relevant MID 'regulations'?

pborojon

raskazz wrote: »

I'm sorry but this is not correct. Could you provide a link to the relevant MID 'regulations'?

As insurers have 7 days to populate the MID auto renewing car insurance is a vital tool to comply with this. As for private car policies the database is automatically updated on EDI policies. The regulations do not stipulate that this has to be done but it is an effective tool.

raskazz

pborojon wrote: »

As insurers have 7 days to populate the MID auto renewing car insurance is a vital tool to comply with this. As for private car policies the database is automatically updated on EDI policies. The regulations do not stipulate that this has to be done but it is an effective tool.

Sorry, but could you explain exactly how it speeds up the transfer of data to the MID?

An automatic renewal will ready the information to be sent to update the MID on the renewal date. As will a non-automatic renewal.

Edited to add: Automatic renewal can actually hinder the acheivement of 'time to supply' of MID data if the insurer accepts proof of cover elsewhere to backdate cancellation to a renewal date.

pborojon

Surely that's why insurers don't backdate cancellation only the RP.