Beware Insurance Co behaviour
Discussion
Dear all,
Just a quick heads up about auto- renewing car insurance. I was insured with a well known broker for a car I have just sold. Told them about the sale of the car - they claimed I was not eligible for a refund of unused cover due to the policy wording that no refunds could be made after the usual 14 day cooling off period. This was a change to the policy made by them at renewal time - something they did automatically, without highlighting the change to me, this clause was not in the previous policy wording and the change was buried deep in the t's and c's.
I am in their complaints procedure (managed as badly as you would expect) and am in contact with the FSO for them not treating a customer fairly. Just beware at renewal time - I would recommend reading the document in absolute detail mine was 13 pages long and the change was buried in page 8, in the small print but I fear most will not have the time and patience to do so.
I only auto-renewed due to convenience (and the price was fine, lower in fact)- from now on its a full re-tender each and every year - not to save money but to ensure I get the cover I asked for.
The FSO are interested because this could be a systemic issue with this insurance company - a nice way to make some more money by changing cover and not returning unused premiums.
Just a quick heads up about auto- renewing car insurance. I was insured with a well known broker for a car I have just sold. Told them about the sale of the car - they claimed I was not eligible for a refund of unused cover due to the policy wording that no refunds could be made after the usual 14 day cooling off period. This was a change to the policy made by them at renewal time - something they did automatically, without highlighting the change to me, this clause was not in the previous policy wording and the change was buried deep in the t's and c's.
I am in their complaints procedure (managed as badly as you would expect) and am in contact with the FSO for them not treating a customer fairly. Just beware at renewal time - I would recommend reading the document in absolute detail mine was 13 pages long and the change was buried in page 8, in the small print but I fear most will not have the time and patience to do so.
I only auto-renewed due to convenience (and the price was fine, lower in fact)- from now on its a full re-tender each and every year - not to save money but to ensure I get the cover I asked for.
The FSO are interested because this could be a systemic issue with this insurance company - a nice way to make some more money by changing cover and not returning unused premiums.
Wozy68 said:
RSoovy4 said:
Eh?
They would have told you about the change in the documents you received when they policy renewed.
Didn't you bother to read them within the 14 days?
Did you read his post? Page 8 of 13. Would you? I wouldn't.They would have told you about the change in the documents you received when they policy renewed.
Didn't you bother to read them within the 14 days?
Call me old fashioned?!
RSoovy4 said:
Wozy68 said:
RSoovy4 said:
Eh?
They would have told you about the change in the documents you received when they policy renewed.
Didn't you bother to read them within the 14 days?
Did you read his post? Page 8 of 13. Would you? I wouldn't.They would have told you about the change in the documents you received when they policy renewed.
Didn't you bother to read them within the 14 days?
Call me old fashioned?!
I make furniture for a living and always check the quality of the joints before I buy something I'm not setup to make. Do you, or just look at the finish/colour?
Each to their own I guess.
I think some of you missed the point. The FSO is very interested in this. An insurance company is duty bound to inform you of any changes to your policy - they didn't.
I'm not green, I read the documents fairly well and I know the insurance industry. What is happening here is interesting - setup auto renewal, keep the policy cost the same so people don't leave but change the cover. A very clever way to make more money. The FSO are interested because it could be a systemic issue.
My point was don't think even a well priced renewal is ok - the insurance company may have changed your cover to save themselves some cost.
I'm not green, I read the documents fairly well and I know the insurance industry. What is happening here is interesting - setup auto renewal, keep the policy cost the same so people don't leave but change the cover. A very clever way to make more money. The FSO are interested because it could be a systemic issue.
My point was don't think even a well priced renewal is ok - the insurance company may have changed your cover to save themselves some cost.
They have not really changed your cover though, you want to cancel it !
I don't give refunds on services I sell which are 12 months long.
If people cancel, they loose the money.
I have not got time to start giving away money when people take out 12 months contracts, it's major hassle.
If you want to cancel half way though pay month by month.
Pay up front in a 12 month contract and that's that imo.
I don't give refunds on services I sell which are 12 months long.
If people cancel, they loose the money.
I have not got time to start giving away money when people take out 12 months contracts, it's major hassle.
If you want to cancel half way though pay month by month.
Pay up front in a 12 month contract and that's that imo.
Edited by mrdemon on Thursday 17th October 17:10
The point is the policy was changed - removing refunds after 14 days without it being brought to my attention. The previous policy had no such clause. It's a sweet way to make money out of people when there is a move in the insurance market for more people to renew and not use the aggregators as much.
The point is the policy was changed - removing refunds after 14 days without it being brought to my attention. The previous policy had no such clause. It's a sweet way to make money out of people when there is a move in the insurance market for more people to renew and not use the aggregators as much.
Rutlandracing said:
The point is the policy was changed - removing refunds after 14 days without it being brought to my attention. The previous policy had no such clause. It's a sweet way to make money out of people when there is a move in the insurance market for more people to renew and not use the aggregators as much.
Didn't they send you the terms and conditions and give you 14 days 'cooling off' period if you weren't happy with those terms..??You are all being a bit hard on the OP who raises a good point. I am sure that many people assume that if they change cars during the year say to a car that is cheaper for insurance purposes then they would get a refund or credit for the lower premium for the remainder of the term. This change in wording implies that that might not be the case.
One last chance to try to explain:-
- I had a policy
- At renewal the policy was changed without my knowledge or consent
- In a clever way so that the change was very hard to detect - no refunds if the policy was cancelled after 14 days, buried in the t's and c's
- I sold my car - hence I do not need the policy any longer
- And the insurance company never informed me of the change - they are duty bound to do so, they have to actually state any changes clearly, they did not. The renewal is not the policy I was sold
- The FSO are very interested, it could be a systemic issue with this broker
- Beware auto renewals, the insurer can change the terms in a very subtle way that saves them money
- I had a policy
- At renewal the policy was changed without my knowledge or consent
- In a clever way so that the change was very hard to detect - no refunds if the policy was cancelled after 14 days, buried in the t's and c's
- I sold my car - hence I do not need the policy any longer
- And the insurance company never informed me of the change - they are duty bound to do so, they have to actually state any changes clearly, they did not. The renewal is not the policy I was sold
- The FSO are very interested, it could be a systemic issue with this broker
- Beware auto renewals, the insurer can change the terms in a very subtle way that saves them money
Have a lot of sympathy with OP and while it may well have been laid out in the paperwork, i think these things should be more clearly brought out.
A few years ago a mate auto renewed (comprehensive) and missed the bit where they removed the 'insured to drive other vehicles 3rd party with owners permission'. Couple of months later pulled over while driving friends car ... no insurance ... 6 points ... £400 fine and insurance now loaded by £200pa due to having that conviction. Yes, should have read the small print but not entirely sure its fair punishment. Solicitor said at the time 'many people are getting caught out by this at the moment'.
A few years ago a mate auto renewed (comprehensive) and missed the bit where they removed the 'insured to drive other vehicles 3rd party with owners permission'. Couple of months later pulled over while driving friends car ... no insurance ... 6 points ... £400 fine and insurance now loaded by £200pa due to having that conviction. Yes, should have read the small print but not entirely sure its fair punishment. Solicitor said at the time 'many people are getting caught out by this at the moment'.
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