Auto Renewal Home & Contents Insurance

[Demonz]

If we havent renewed an insurance policy and didnt call through to cancel it can the insurance companies insist on payment for the first month after it automatically renews, they dont get payment, so automatically cancels.

I just rang through to say we arent taking the policy as the price was to high and ask if they can offer a better rate as a competitor has a lower price. They said no lower price but I have to pay £25 still for the first months cover as I missed the deadline to cancel it before it automatically renewed.

They say it is because they would still pay out since it started even though payment wasnt taken to confirm and it is still active (although payment hasnt been made). Am I liable still to pay the first month (£25)?

Or should I just ignore it and take a policy with the other provider. Guy on the phone says it goes to debt recovery if I dont pay, as the policy is auto-renewed...

[PsychoCannon]

Every case I've seen so far has folded in the customers favour after a few strongly worded letters but i'm no legal eagle so wait for some more learned advice :)

It doesn't help they bury this in the small print and it's ILLEGAL to be dual-insured, shame you hadn't already taken out the other policy as that's a very effective club to beat these guys with.
I mean it's your responsability to make sure you're not dual insured but it seems to work well all the same.

[timwilky]

Did you not read your renewal notice?

OK I agree auto renewal is wrong. You enter into a fixed term contract, you should not have to give them termination notice. However, many contracts, not just insurance (ie, maintenance) do require notice of termination, and would probably describe themselves as ongoing with an annual fee.

Insurance you are stuck in the middle. Would you like to find yourself at a loss because you had failed to renew a policy? granted autorenewed policies don't tend to be competitively priced.


One lesson on insurance for me was my pet insurance for my dog. When it came up for renewal I found it cheaper to take out a new policy with the same provider than renew. Poor dog had a problem and needed an op. the insurer refused to pay on the grounds that it was a pre existing condition when I took out the policy. Even though I pointed out they were the insurers when the dog had his first consultation with the vet. etc. No.

For that reason, I have stuck with my house insurer for some while on the grounds that they might one day argue that subsidence etc was pre existing when I took out my policy

[Stu]

I would be surprised you had to pay the full first month.*
But I would expect you to be liable if you didn't have another policy already in place from the renewal date.

* If you don't pay the full month they probably have a set up fee/cancellation fee of £20-£40

[Demonz]

Did you not read your renewal notice?


No - it was stacked by my wife for days like today when I have time to go through the post. Anyway I will pay the month and start the new one when this expires.

Managing insurance policies is the bain of my life... so many policies, so many providers - I wish it was all nationalised!

[PsychoCannon]

I wish it was all nationalised!

Ok..you've been through a lot of stress by the sounds of it so I'll let that comment slide...this time! =p

[rusty76]

Not really sure how (well I do, it's cos I'm stupid & lazy) but a few years ago I found that I'd still been paying to insure the house we'd sold 2.5 years previously (told you I was dumb)

Anyhow, the company (I think Zurich) gave me all the money back with no fees etc charged. I assume this may have been becasue I never actually signed back up with them, it was renewed automatically.

Also you might want to check out the 14 day cool off period that applies to all insurance