A warning about insurance companies

I will just start by saying that the insurance company I am about to slate has done nothing actually illegal. Just, in my humble opinion, highly immoral.

OK, just over 12 months ago I took out insurance on my then bike (NSR125 - excellent first bike by the way) with Bennetts. I specifically did a one-off payment on my bank card, rather than a direct debit, because I didn't want it to automatically renew without me doing anything. As it happened, the renewal offer looked a little pricey so I looked elsewhere and went with Bike Team who a) came highly recommended in a Ride magazine survey and b) were a sensible price. Having made that one-off payment the year before, it didn't occur to me that I needed to actually cancel the insurance with Bennetts - it was just going to lapse. After all, hanging on to bank card details and reusing them without permission is fraud.

Fast forward to last weekend and I discover that my bank account is over £200 shy of where it should be because Bennetts had taken the payment without asking. My first thought was, "I'll have you for that - it's fraud." However, when I phoned them for an argument I was informed that, somewhere deep in the original terms and conditions, I had agreed to them keeping and reusing my card details. They will refund most of it, less an admin fee for canceling after I'd renewed.

As I said at the outset, I signed the damn thing so Bennetts did nothing illegal. I think it is sailing pretty close to the wind though. The whole point of having different payment options is because people want different things. If you want the security of insurance that you can't forget to renew, take the Direct Debit option - that's what it's there for. If you want to make the choice yourself, take the one-off payment option. I checked with Bike Team today, as it happens, and they were definite that a one-off payment is just that - they would never hang on to card details.

So, watch what you are signing or it might cost you.

This has been raised before with other people being bitten by it. Did you give notice of cancellation to Bennetts? It does state in their Ts+Cs that you have to give them notice or they'll renew; their policies don't automatically lapse.

How much is "most of it"? And how much is the admin fee? Did you register a complaint? If not, call them back and do so. They'll be FSA regulated, which means that any complaints have to be formally logged and investigated etc. within 8 weeks. If their complaints team don't deal with it, they'll have to inform you of your right to refer it to the Financial Ombudsman Service. If you've still got the motivation at this point, refer it to the FOS. There's a £500 case-fee chargeable to the insurer for the FOS to take on a case, so if it's over a pittance, they'll usually roll over at that point.

[TamSV]

Funnily enough I've just got my renewal in from Bennets. It does say on the front of their renewal notice that they'll take the premium off my card unless I tell them otherwise.

In my case, I'm renewing so I was thinking it was handy I didn't need to phone them.

I don't keep card details in my business, mainly because the data security is a PITA, but I've been told off by customers for not keeping it to save them the bother of phoning in.

Can't please everyone I suppose.

[G]

It's normally pretty clear what they are going to do on the renewal notice.

More importantly do you not read everything before signing it!!!

Southpark did a brilliant series the other day where in one of Apples iPad update in the small print you agreed to be kidnapped and have your lips surgically sown to another persons buthole, and everyone just said tough you should have read the T&C's before accepting them.

Originally Posted by TamSV

Funnily enough I've just got my renewal in from Bennets. It does say on the front of their renewal notice that they'll take the premium off my card unless I tell them otherwise.

In my case, I'm renewing so I was thinking it was handy I didn't need to phone them.

I don't keep card details in my business, mainly because the data security is a PITA, but I've been told off by customers for not keeping it to save them the bother of phoning in.

Can't please everyone I suppose.

I would never just exept the renewal notice! It's normally more than the previous year and you can always knock them down.

Can't comment on bennetts, never used them, but those that renew automatically, don't you shop around first, cos the premium is always hiked at renewal time, so even if you go with the same insurer give them a call first and i'll bet DP's scrap collection that you can get it cheaper. EDIT, Sorry G never saw your last line, lol.

the convenience of automatic renewal is imho a bloody inconvenience and i concur - dont just accept the renewal price..mine came in at £1400 and after some confusing research, I advised them accordingly and they dropped to £600 with loads of freebee's (roadside assist, legal, etc) and £100 cash back... i was thankfully very aware of the auto renewal but find it annoying you have to remember to call them to cancel!

EON did something similar when in enquired regarding gas/elec at my new home.. they'd post me some details and if i didnt contact them to say I WASNT INTERESTED within 14 days i'd automatically be on a contract with them... (they threw that little detail in at superspeed right at the end of the conversation - sly buggers as far as i concerned ) thanks but no thanks.

I think the lesson is ALWAYS READ THE SMALL PRINT.

I'm with Dial Direct and they're ok, their finance company are a bit sharp though, luckily it only cost me £21 in fees, and entirely my own fault.

E-bike are to be watched, a good mate was caught out riding her friends bike because E-bike don't provide 3rd party cover for other folks bikes, all her other previous insurers did and she got caught out. 6 points, £200.

Nowadays, there will be very few insurance companies that will NOT have automatic renewal details hidden in their terms of conditions. For my cars I use a broker, who have been absolutely fantastic at finding me the best price and for the last 6yrs I havent found cheaper anywhere. As a broker, they have never automatically renewed my insurances and even phoned me the day before my insurance expired on one occasion as I simply forget! My bike insurance is different, they will always automatically renew unless they receive a phone call - Only had to change once and informed the old insurer immediately. I guess for some it would a lesson learned who think they may have got stung.

[timwilky]

I always give notice, the days when you had to actually renew are long gone. Especially with the new continual enforcement rules they will argue that they are protecting you against accidentally failing to re insure.

Yes it is a con against the lazy. I always read my renewal documentation, shop around and have no loyalty.

All good points, guys. "con against the lazy" is spot on timwilky. It was, indeed, entirely my own fault for not being more careful - the post was to warn others as much as to complain about Bennetts. You are right about loyalty too. The insurers have no loyalty to existing customers, your renewal will always be more than a new quote from the same insurance company, so why should we be loyal to them? My wife's included her first year No Claims and was still actually higher than the year before.

I missed that episode of South Park - shame, it sounds bl&$dy funny!