Insurance renewal ripp-off!! Advice please.

[mattw]

Thought I’d open this up to the PH collective, as I am sure someone else must have had this problem with insurance companies.

The wife has recently renewed her car insurance but rather than cancelling her previous policy she simply cancelled the direct debit once that yearly policy had come to an end.

However the insurance company she was with had one of those processes in place that automatically renews your policy based on your old payment details; obviously in this case they could not do that as my wife had cancelled the DD.

Anyway they are now demanding £35 (I assume the monetary amount of cover they say was used) before they will release her proof of no claims to her new insurer.

Now I know that £35 is not much money, but it’s the principle of the thing 1) I am fed up with insurance companies taking it for granted they can simply renew policies without any authorisation from the client, and 2) It annoys me that they are withholding information (NCD), is this not illegal?

Anyone know if there is a way around this or anything legally related that I could throw back at them in a letter?

Cheers

Matt

[birdbrain]

I could be wrong but it usually says something in the small print that unless you tell them they automatically renew.

Was there a reason she didn't tell the previous insurer that she wasn't renewing with them?



>> Edited by birdbrain on Wednesday 23 March 13:16

[KITT]

Have you got the renewal notice from them? This usually states the no claims bonus on it and is acceptable for the new insuers.

[ultimasimon]

Hi Matt.

You will have to check the wording on the policy when you took the policy out. If it states on there that this is normal procedure there's nothing you can do.

If its not mentioned, then I would take it further, and write to the branch manager if they are a chain or a senior manager within the company. Failing that write to the Insurance Ombudsman (do a google) and that always puts the wind up them.

I sympathise as there are enough costs invlolved without any more hidden charges.

[mattw]

Hi,

TBH I did not know she had not, at the very least, given them a call to say she would not be renewing.

Personally I think she maty have to bite the bullet on this one as its her fault for not reading the small print, it just annoys me that insurance companies can hide this stuff in the small print.

Do the new FSA rule not give me any come back on this i.e. important info hidden in small print?

Cheers all!!

Matt

[dick dastardly]

I had the total opposite problem with an insurer before. They called to check I wanted to renew so I said that I did as they were by far the cheapest option. When I called back a few weeks later to get a quote for a car I fancied they told me that I hadn't chosen to renew and that my policy had run out. Due to their cock-up I'd been driving around uninsured for two months and to rub salt in the wound, instead of apologising to me they charged me more to insure with them becuase the policy rate had gone up!

[m-five]

www.bacs.co.uk said:

The Direct Debit Guarantee If the amounts to be paid by Direct Debit or the payment dates change, the organisation collecting the payment will notify you normally 10 working days in advance of your account being debited or as otherwise agreed. If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid. If any payment is made in error, you should contact your bank or building society who are responsible for giving you a full and immediate refund - even if the original error was made by the organisation collecting the payment. Direct Debit is one of the safest ways of paying your bills. Fraud rarely occurs because organisations using the Direct Debit Scheme go through a careful vetting process before they're authorised, and are closely monitored by the banking industry. But if money were to be taken from your account fraudulently you'd be protected by the Direct Debit Guarantee, and would be entitled to an immediate refund from your bank or building society. Don't forget, you can cancel a Direct Debit at any time by contacting your bank or building society. We also recommend you notify the organisation concerned.

Unless the insurance company has written something in their T&C's about charging you for cancelling a direct debit then they cannot charge you anything even if they say they will automatically renew - however I can't see how you can force them to hand over the proof of NCB either.

[citloon]

I had a similar one a couple of years ago, the idiots hed cancelled the policy but where still taking the direct debit???turned out I had been driving around for three months without cover... As it was a broker I went in and asked for a personal word with the chap who has done this service for me, he hid in the back and as SWMBO was renewing her cover we got max no claims for her which was by way of an apology, incompetent of crooked? I now use confused.com for renewals

[loaf]

1. They can't charge you for cancelling a DD; they are not allowed to charge you for a Certificate either, although they normally try to give it the 'admin fee' line which is utter ballocks, it costs them about 0.002p to print the sheet and 25p to post it

2. If you send them proof they have not been on risk since the renewal date (a copy of your new insurance cert will do fine) then you have absolved them of any responsibility they may have had and proved you don't owe them any premium

3. If this doesn't work get details from the company about their complaints procedure - usually involves writing to the Chief Exec, you'll get a 'thanks for your letter we'll look into it' within 5 days and a full reply within 28 - detailing the fact that you think they're a shyster bunch of Caring Understanding Nineties Types and if they don't feck off you'll go to the FOB

4. If that doesn't get a result then got to the FOB.

[fido]

yep, i had this problem a while ago, hence i avoid direct debit where possible.

to claim back old premiums you will need to send proof of insurance with another company, which i guess you have so no problemo.

[cotty]

Threaten them with the Ombudsman, even if their right which I don’t believe they will have to pay, I belive it is £350, they will probably waive the £35 they are asking for.

[simpo two]

dick dastardly said:

Due to their cock-up I'd been driving around uninsured for two months

I had that when I bought a car privately. We agreed the amount, then to get home I rang the insurers from the seller's phone, fixed it up verbally and drove home. When I got home there was a message to say there'd been a mistake and I wasn't covered after all.

Had I been involved in an accident, I don't know what would have happened... I'm sure the company would have 'lost' the tape.