Automatic insurance renewal....

[SilverSaloon]

hi

My car insurance was due to expire earlier on in the month, i'd not had any renewal documents through the post from them but, as i always do, i shopped around and also entered in myself as a new customer on their website. it was about £100 more than elsewehere, so i took new cover elsewhere, all fine.

up until today when I phoned them to ask for proof of NCB to send to my new insurer..... they said that they had renewed my policy for the next year! charging me about £50 more than last years premium via DEBIT CARD.

they tell me aslong as i can prove i've insured elsewhere from the date that lapsed i will get a full refund.

BUT i thought they cannot renew automatically on a card without some authorisation?

 

[BTB 500]

Quite a few insurance companies do automatic renewal, IIRC you often get a slight discount for this. Should be stated on the paperwork you received though.

 

[Bobby Dazzler]

Happened to me a few times now - most recently Warranty Direct automatically renewed without my authorisation. Every time I've been told "We had a glitch with the system"...

 

[Deleted member 6183]

Happened to me too the only time that I paid by installments, wound me right up when the offshore call centre kept putting obstacles in my way when I tried to cancel. As I see it you pay in one go up front you won't have the problem.

 

[Spinal]

You'll probably find you "authorised" them to automatically renew when you bought your policy the year before...

Somewhere embedded in the fine print...

 

[Shude]

As I see it you pay in one go up front you won't have the problem.

From the wording of the OP's post I get the feeling he DID pay upfront. I've only ever paid upfront for car insurance and a few insurers over the years have renewed automatically and zapped the premium right out of my account via debit card.

 

[SilverSaloon]

Yes i always pay upfront, for the full year, unless its 0% to pay monthly and the same final price, which only ever happened once with directline.

they say they will refund me no problem aslong as i can prove i have had cover elsewhere.

i assume as pointed out above, it was deep in the small print. next year i will phone to ensure it doesnt renew automatically.

also strange is that its been 3 weeks since they say it renewed but i've not had any paperwork through yet from them, so even if i wanted to renew it its a bit slow not to send the new paperwork though

 

[John]

I went with Aviva one year, and paid up front.

They still automatically would renew the policy by just debiting the full amount from my card the next year.

They said they were stopping this after I asked them to cancel it once I renewed with Direct Line, who in my experience don't take 30/40 minutes on the phone to add a loan car to my policy...

 

[renault12ts]

Which is worse, auto renewal, or no insurance because you thought it would be automatic, or just plain forgot and it wasn't auto renewal?

 

[John]

What is worse in my mind is not taking responsibility for my own insurance - I would recommend getting yourself better organised if you can't remember something as important as this.

This then avoids the hassle of cancelling it because invariably the premium will go up.

Insurance companies do renewals purely for their own benefit, not for yours.

You should be reviewing your circumstances as well in case you are then uninsured because they assume nothing has changed.

How about automatic renewing MOTs as well?

 

[renault12ts]

In an ideal world you would be correct. But of the millions of polices out there I would think there would be many forgetful people. If a refund is forthcoming, plus a little hassle, then that would be (IMO) preferable to falling foul of the law, particularly regarding the recent changes.

These are just my humble opinions and should be treated as such...calm down.

 

[219]

Yes they say they will refund me no problem aslong as i can prove i have had cover elsewhere.

That bit is completely wrong .

It is completely irrelevant and no business whatsoever of theirs whether or not you have insured elsewhere .

You might have sold the car or SORN'd it , older cars don't even need to be SORN'd , or just decided to be a lawbreaker and drive uninsured - your insurance company are not the police and it is nothing to do with them why you choose not to reinsure with them .

You can probably just tell your bank the debit was unauthorised and have the funds recalled .

 

[swannymere]

Grrr, Don't get me started on automatic bloody renewal! First my insurance company and now the AA who for the second year running have automatically renewed my breakdown cover at double the price i was originally paying and also double the price of letting it lapse and buying new cover through the website. Phoned them both years to be told it was standard and you had to phone them and complain to get the discount (in not so may words!). Luckily i was on the ball but they must make millions from people not checking.

 

[GP801]

Lots of them do the automatic renewal. I have had this with Aviva and others but at least they have all written well in advance with the renewal quote and the option to cancel.

 

[E CLASS]

Continous insurance is on its way imminently.

Every car will need to be insured unless its SORN'd.

 

[SilverSaloon]

in my case it was with Aviva, but no i had not recieved any renewal or any contact from them.

they say i need to tell them my policy number of the new insurer so they can check on the database to see if its insured, if it is they will refund.

i only found out all this because i phoned them for a No claims proof. i've recieved no paperwork for the renewal so i assume if i left it too long they may of turned round and refused a full refund, and i probably would of only found out if i noticed the payment on my bank statement.

i think it should be left up to the policy holder to renew if they want to. no different to getting tax or an MOT when its due. i dont need my hand held, i want to choose the best company to go with for my situation at the time. its just a sneaky way for them to get the money out of you.... if you forget to renew then its your own fault. they do usually write anyway, but in this instance i didnt get anything but i assume it could of quite easily of got lost in the post or something.

 

[snoop51]

in my case it was with Aviva, but no i had not recieved any renewal or any contact from them.

they say i need to tell them my policy number of the new insurer so they can check on the database to see if its insured, if it is they will refund.

i only found out all this because i phoned them for a No claims proof. i've recieved no paperwork for the renewal so i assume if i left it too long they may of turned round and refused a full refund, and i probably would of only found out if i noticed the payment on my bank statement.

i think it should be left up to the policy holder to renew if they want to. no different to getting tax or an MOT when its due. i dont need my hand held, i want to choose the best company to go with for my situation at the time. its just a sneaky way for them to get the money out of you.... if you forget to renew then its your own fault. they do usually write anyway, but in this instance i didnt get anything but i assume it could of quite easily of got lost in the post or something.

I'd be having a careful look at the paperwork you got last year. If you can find nothing in there about automatic renewal it is theft pure and simple, and another case for the Financial Ombudsman. If they are willing to refund the full amount how about any interest you may or may not have lost, you can be sure it's been earning them interest whilst they've had your money.

If of course you find they do mention automatic renewal in the paperwork then be thankful if you get a full refund and walk away.

 

[John]

In an ideal world you would be correct. But of the millions of polices out there I would think there would be many forgetful people. If a refund is forthcoming, plus a little hassle, then that would be (IMO) preferable to falling foul of the law, particularly regarding the recent changes.

These are just my humble opinions and should be treated as such...calm down.

I don't do 'not calm'...

They send you an insurance reminder with a renewing policy anyway so you don't even need to remember.

If you are the sort of person who forgets things like insurance, how are you remembering to get your MOT done or checking tyre pressures... That's not all about falling foul of the law...

My point is - don't lumber us all in that forgetful container and force it on us.

They could do with giving you the option...

 

[219]

Continous insurance is on its way imminently.

Every car will need to be insured unless its SORN'd.

Apart from Sorn exempt cars .

 

[LTD]

Automatic renewal would not stand up in court as the new contract will be at a new price and constitutes part of the agreement.

The company would be required to offer their new contract to you as the price has changed and subject to your acceptance. This must be done within an agreed time frame prior to the end date of your existing policy.