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    • D_M_E
    • By D_M_E 5th Oct 17, 7:46 PM
    • 1,556Posts
    • 63,584Thanks
    Automatic Renewal
    • #1
    • 5th Oct 17, 7:46 PM
    Automatic Renewal 5th Oct 17 at 7:46 PM
    Just listened to a friend on the phone complaining about automatic renewal of an insurance policy.

    This got me wondering how many had been forced into debt because of this practise if their debit/credit card was close to their limit and the presentation of a request for payment took them over their limit thus incurring fees and charges, as well as the possibly unwanted policy.

    Also, how many would not notice and buy a new policy elsewhere and end up paying for both?

    I also think that companies should be banned for keeping card details on record "just in case" the customer wants to buy something else, which again encourages debt and, particularly if the customer is near their limit, could well result in more charges.

    These examples are, I think, good reasons for banning autorenewal - at the very least, make the customer aware that it's being done at the point of purchase and not let him or her find out months down the line at renewal time, if they ever get notified - and banning the retention of card details because "we will autorenew your policy so you don't have to worry - yes some people might like this - or you might want something from us in the future"

    Other examples are gym memberships, mobile phone contracts and lots of other things.
Page 1
    • DCFC79
    • By DCFC79 5th Oct 17, 8:16 PM
    • 31,912 Posts
    • 20,097 Thanks
    • #2
    • 5th Oct 17, 8:16 PM
    • #2
    • 5th Oct 17, 8:16 PM
    So if a consumer has a policy and its run out with the driver unaware and they are involved in an accident, what do you think a suitable response would be ?

    Or if a policy were to auto renew and an accident occurred the driver would be covered would they not ?

    Imo its simple really, if people want to avoid auto renew then you use a calendar to write on it when certain insurances are due OR use a phone app to do the same thing, I do the same and it works.

    If for some reason I didn't do the above 1 year I would rather a policy auto renew and in the event of an incident Id be covered.
    Last edited by DCFC79; 05-10-2017 at 8:26 PM.
    • EssexHebridean
    • By EssexHebridean 5th Oct 17, 8:19 PM
    • 8,717 Posts
    • 45,964 Thanks
    • #3
    • 5th Oct 17, 8:19 PM
    • #3
    • 5th Oct 17, 8:19 PM
    I *think* there is something about car insurance has to be set to autorenew these days as default - as there is a legal requirement to have it even for a car parked by the roadside.

    BT tried to stitch us up when we wanted to leave them some years back saying that they had "autorenewed" our contract for a further 12 months...we told them that they hadn't as the steps they'd taken to inform us (A small print one liner on the bottom of a bill with nothing to draw attention to it) were woefully inadequate. we eventually won the battle and left, but it took a while!
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    • fiisch
    • By fiisch 5th Oct 17, 11:15 PM
    • 285 Posts
    • 162 Thanks
    • #4
    • 5th Oct 17, 11:15 PM
    • #4
    • 5th Oct 17, 11:15 PM
    Insurance Companies have to offer automatic renewal - in the event someone forgets to renew their insurance (i.e.: the card they used has expired) and they carry on driving and have a claim, the last insurer still has to pick up the tab for the third party costs.

    If you miss the renewal date of your insurance, or something comes off your card without you knowing, it's poor life admin management!! The insurer will always give ample notice of the renewal, and whether or not they intend to automatically renew if they don't hear back....

    You can of course specify when purchasing a policy you do not want automatic renewal, and the insurer will gladly switch this off. Contrary to popular belief, it is not a scam to get people to renew at inflated costs - it is to protect people from driving around uninsured and minimise the number of claims needing to be met under Article 75 (i.e.: last known insurer).
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