Insurance automatic renewal is a con

[merlin100]

I'm with you 100% on this. My own thread on this topic shows that the companies are determined to set their systems to inertia renewal even when a premium is paid in full at the start and continuous authority denied.

 

Yes its a damn nuisance. The other "fast one" they pull is the payment they take ( in Swintons case the £30 payment taken anytime up to 8 weeks before the existing policy ends, as a "set up", "administration" fee.) Obviously they hope if they manage to get something towards a new policy, the customer will simply resign themselves to what seems to be the inevitable and allow them to renew.

After many arguements with Swinton ( all falling on deaf ears) I eventually asked them how they thought they could singularly renew my policy without my consent or authority. Their reply was that I was pre-warned in the T&Cs ( in very small writing). I counted that by stating that I didnt see how one party to a 12 months contract could write a term that sought to automatically renew and then attempt that renewal without knowing what the other party wanted to do ( sending me letters saying if I did nothing they would assume I consented). I got my money back and will not go anywhere near them again.

After reading this thread Ive just phoned my current insurance company up and asked if they have an auto-renewal policy. They confirmed they have - Ive told them to switch the bloody thing off and contact me towards the end of the policy with their best quote. The old-fashioned way!!!

[Madferret]

The problem I had was I moved house and while I expected the insurance to run out. It didnt now they took 2 payments out in 2 weeks, which I can't get my head round.

 

Now the crunch I've already paid £260ish and they want another £35 from me and I seemingly can't do anything to rectify it.

 

Regards

Nick

[pete f1]

Add Admiral to the list - demanding £66.86

[fifelifes]

i took out my policy last year and made a point of deleting the auto renewal from my policy before i took out the policy while on the phone with an aa representative yet here i am with as you say an over priced policy but also a silver membership for breakdown cover £61.25 which the aa has already managed to set up direct debits from my bank account for both without my knowledge or authorisation. i have just sent them an e-mail and awaiting a call back at the moment. this happens to me every year. in fact when i cancel the direct debits at the bank which is the only way to stop them taking my money without my authorisation they then proceed to charge me for the full years policy that i didnt want plus cancellation fee despite having explained when i took out policy at the start that i did not want auto-renewal on the phone also i had unchecked the 2 boxes which ask if you want auto-renewal when filling out the forms.

 

this is a [problem]. my advice cancel dirct debits at your bank but also check for secondary debits at the end of the policy and throw the letters in the bin. if they dont have your signature they cant legally hold you to it also online insurance policy's dont need a signature.

[fifelifes]

go to your bank and cancell direct debits mate

[Bang!]

I've never had a renewal price that was not thrashed elsewhere - then normally reduced more by cashback.

 

Its looking like the safest way to buy insuarance now is with a prepaid card, and a recorded delivery 'do not auto renew' letter.

 

Rip-off-britain always seems to flourish with the tories in.

[Bikerdave55]

Please be aware that although you have a 14 day cooling off period for automatic renewal it would appear that if you pay by installments you will still be liable for the full premium under the terms of the credit agreement as I have just found out with Esure.

 

Ah well serves me right for not dealing with it earlier!

[Bikerdave55]

Rip-off-britain always seems to flourish with the tories in.

 

Sigh . . . it was doing pretty well before the Coalition . . .

[insuranceannoyance]

Green Insurance company didn't ask me if they could automatically renew my policy @ 100% inflated price and posted a ridiculous quote 14 days prior to renewal. I have never come across automatic renewal before and the quote was consigned to the recycle bin. Had to dig it out to send it to the new insurer then I noticed the Automatic renewal notice. Can't stop the bank taking the payment, have to speak to to insurance company and they will charge for their corrupt annoyance.

[insuranceannoyance]

It is the first time that I have come across auto renewal. It is a CON. On another page it was stated by an insurance company employee that they are required to ask if we require auto renewal. I definateley wasn't asked this by The Green Insurance Company. When the quote arrived 14 days ago @ 100% increase it was consigned to the recycle bin. Had to be recovered to send it to the new insurance company. Then the panic ensued to try and stop £601.90 being removed from my bank. Bank can't help, have to speak to Green Insurance Company who are closed today, (day the insurance commences). THIS PRACTICE SHOULD BE ILLEAGAL!

[Old Cogger]

Last year I has an automatic renewal notice just before date, the new price was 250% increase, straight on it and rang to be told they will re-quote even then it was 125% increase, so I said hope you go out of business and got it cheaper elsewhere, but even there I will be on my guard soon again. It is criminal situation.

[ThedaBara]

As is well documented i work for an insurance company that "engages in this odious practice"

 

Firstly we cant auto renew your policy without giving you prior notice.

 

All renewal quotes are sent out well in advance (at least 21 days) and they confirm that the policy will automatically renew, it will also confirm how (direct debit, credit card etc).

 

Even if the policy renews, you will get a letter to confirm this and then there is also a 14 day cooling off period in which you can cancel the policy without penalty.

 

I'm sorry but you get 21 days before the renewal date and then a further 14 days afterwards in which to cancel the policy so this is plenty of time to get this sorted out.

Obviously mistakes do happen and with the postal strikes back in October we had many renewal quotes and acceptance letters go missing so we had to use our judgement if someone called in to cancel outside the 14 days but as a general rule the consumer is given plenty of time and notification to make a decision and contact the company.

 

In regards to the premiums not being competitive, most large companies (including ours) has a retention or "cancellations" dept who have extra leeway with the renewal quotes so can often negotiate a better quote if the customer isn't happy. As the old saying goes , if you don't ask, you don't get.

 

 

DA

 

Perhaps insurers should be required to obtain the policy holder's signature each time insurance is up for renewal, just to ensure that the contract is binding... If each term of insurance lasts for one year, then the contract is for a year, not for several years or until the policy holder opts out.

It would be much fairer all round... there must be a rule which states the length of the 'loan'... ie, the period of insurance... Surely it can't be a binding contract otherwise? TB