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Insurance Auto Renew - Position

ken555 - 9/5/19 at 05:02 PM

My Mother (85) has just found out that her previous insurer has auto-renewed her car insurance this year.

She had shopped around and got it cheaper elsewhere.

Only found out when the bank statement came it. No documentation from the co involved.

She phoned up today to be told there is a Ł175 cancellation fee (on a Ł280 policy !)

The money was taken 11 days ago, the insurance renewal date was 8 days ago.

Does anyone know what the position is on this?

I would think its within the cooling off period for distance selling, and also I though that they weren't allowed to take a payment without permission.

Slimy38 - 9/5/19 at 05:19 PM

quote:
Originally posted by ken555
I though that they weren't allowed to take a payment without permission.

Unfortunately this 'permission' would have been granted at the start of the first policy, in fact the last few policies I've taken are extremely clear (often in bold and in a prominent position) that the auto renewal will be taken unless the holder explicitly says otherwise. It seems to be the way insurance companies make a profit nowadays, catching out the unwary.

Having said that, I do tend to get paperwork roughly a month before any policy is due to renew, reiterating the auto renew policy. It seems odd that she didn't get anything other than the bank statement.

mcerd1 - 9/5/19 at 07:27 PM

I thought you'd still get the 14 day right to cancel - at least thats on my policy....

afterall each year its a new / renewed policy with new terms and conditions

[Edited on 9/5/2019 by mcerd1]

SteveWalker - 9/5/19 at 08:53 PM

Definitely had no problem cancelling my wife's insurance a few days late when it had auto-renewed, but we'd found a better quote. I'd call them again, point out that she received no renewal notice and that she is within 14 days of the renewal and if you get nowhere, ask to speak to a supervisor.

ian locostzx9rc2 - 9/5/19 at 09:40 PM

I’m sure all my insurance policy’s have a 14 day calling off period

Mr Whippy - 9/5/19 at 09:54 PM

Isn't it illegal to have two policies on the same car anyway

Slimy38 - 10/5/19 at 05:57 AM

quote:
Originally posted by Mr Whippy
Isn't it illegal to have two policies on the same car anyway

No. You can't make a claim on two policies for the same thing, but you can have as much insurance as you want.

As a (sort of) example, if I drive my wife's car I'm covered under her policy as a named driver, and covered under mine for driving other cars. I couldn't make a claim on both in the event of an accident, but I would have the option of picking one.

motorcycle_mayhem - 10/5/19 at 09:46 AM

Brings back a nasty period with the #F* that did the same to me (van insurance), after hiking the premium from Ł220 to Ł460 with no explanation.
Auto renewal, but I had already called to cancel before (note to self, record these calls) and set up insurance that was cheaper than the ca. Ł220 renewal I was expecting from the #F*.

So many letters, Emails, etc. They wouldn't cancel the policy without a cancellation fee, etc., etc. Eventually sorted by going into a #F* 'shop' and initially being very polite, and then gradually not so. I shouldn't have had to do it.

I hate this sort of shite. From the car to the house insurance (just had a renewal for that), excessive increases for no reason whatsoever (rather than profiteering?). I've been sitting here looking at several 'new customer' quotes, far cheaper. All are 'auto renewal', but a good quote from First Direct does suggest that they'll contact me first..... hmmm... I wonder.

[Edited on 10/5/19 by motorcycle_mayhem]

r1_pete - 10/5/19 at 12:12 PM

DVLA depend on auto renewal now, and no longer check insurance when you tax online...

Its all a big con, many offer a slight reduction for auto renewal, cancel the auto renew a few weeks after taking the policy, but make sure you are continually insured dont depend on the tax going through to validate your insurance.

Paul_Arion - 10/5/19 at 04:42 PM

As above, 14 day cooling off period should apply - with the insurer able to deduct for a "small" admin fee and days cover until the cancellation. Ł175 is hardly "small" - i'd be on the phone to them to make a formal complaint for excessive fee charging (Ł25 would be fairly reasonable imho) and looking to take it to the Insurance Ombudsman if necessary. Good luck

CAB link for cooling off period

ken555 - 10/5/19 at 09:31 PM

All sorted.

Was paid with a credit card.
So she was at the bank at 9:00 as it opened, and a quick phone call from the manageress, threatening to "section 75" them had a full refund issued with no problem.

Sometimes, not having internet banking, and having a known face, helps a lot.

Mr Whippy - 10/5/19 at 09:49 PM

Good result hats off to the bank

FEZ1025 - 6/7/19 at 04:13 PM

They should have notified her 30 days before the end of her last policy, but that aside Auto-renew to my mind should be made illegal, it's just a further con of a corrupt auto insurance business, why should I have to have 3 lots of insurance for 3 cars, I can only ever drive one at once, okay there is teh theft aspect, but it doesn't warrant 3 seperate insurances, before somebody mentions multi-car policies I've never been offered one that actually works out cheaper.