Auto-renewal question

[JACUPRA280]

Hi Guys,

I'm hoping to rack the brains of somebody with experience with insurance auto-renewals.

I got my renewal quote today from my insurer for my Cupra which is some £1,600 more than last year, despite no change in circumstance (the usual, blah blah blah).

The quote for renewal is £2,541.26 for my 14 plate Cupra - 26 years old with 6 years no claims. I have a quote from another insurer for £450 for the year. So yeah, a piss-take

My question is, is my insurance company allowed to charge a cancellation fee if I notify my insurer that I do not want them to auto-renew my insurance? So basically, my insurance will run out after it has completed its full term and I will simply not renew it with them.

Thanks in advance.

 

[Dan FR]

You are under no obligation to renew, automatically or otherwise. No cancellation fees can be charged, although if you ring them up they will probably give you a reasonable quote and save you the hassle of switching

Unfortunately it is the 'normal' thing that all insurers seem to do

 

[NotApplicable]

Sounds like they don't want your business. It's common to price high to make people move away.

Who is your insurer by the way? Have you checked out Adrian Flux? They were my "go-to" place when Direct Line tried to ditch me.

 

[dephead2004]

Insurance premiums have defo risen sharply. In my case, 30%.same terms and conditions. It's due to much firmer pricing and government insurance tax rises.
Nevertheless that increase is crazy. You can and have done better.

I find I change most years and often pick up freebies along the way like meerkat movies saving£10 on a movie outing. Once you have a quote from a comparison site go back to your old company and they often fold to be more competitive. Yesterday I saved£10 without even buying by saying the quote from the same company on line!

For a good guide in this and all things financial look at Martin Lewis's website

 

[JACUPRA280]

Thanks chaps.

My insurance is with Elephant. I agree that their renewal quote is ludicrous. I won't waste any time negotiating with them; there's no way in hell they'll reduce their quote by £2,000 just to be competitive.

 

[dephead2004]

Update. Just spoke with old company for a renewal price . Just for asking they knocked off £40 making £244 for all bells and whistles protected comp plus legal plus Euro breakdown plus keys on a 2litre BMW . However I am VERY old (that's why I'm a senior member ) and have never had a fine or conviction and 100,000,000 years NCB

 

[JACUPRA280]

Update. Just spoke with old company for a renewal price . Just for asking they knocked off £40 making £244 for all bells and whistles protected comp plus legal plus Euro breakdown plus keys on a 2litre BMW . However I am VERY old (that's why I'm a senior member ) and have never had a fine or conviction and 100,000,000 years NCB

Thank you for the update, but the key difference here is the price difference between your insurance and mine. Getting £40 off is not the same as getting £2,000 off. That's what they would have to reduce their quote by to be competitive, and even then they would be £50 or so off.

Like I said, I won't waste my time with them as I've had far better quotes and I can take a policy out online in minutes.

 

[Cuprobbie]

I'd been a loyal customer of Aviva for several years and had never made a claim. When my most recent renewal arrived it seemed a bit steep so I looked around and renewed with Direct Line for slightly over half the cost of Aviva.

In the world of car insurance, loyalty does not pay off. I think they just hope that people don't have the time or can't be bothered to shop around.

Because the insurance with Aviva had expired there were no penalties for not auto-renewing and the change to Direct Line was straightforward.

 

[ActionScript]

I think they just hope that people don't have the time or can't be bothered to shop around.

This completely. I also think they up the price, hoping you won't notice, missed or didn't check your emails the day before renewal for the reminder that they'll renew. Or even that you've just forgot how much it cost the year before. Or that people are lazy and just let it happen.

@JACUPRA280

An increase by £1600 is insane though, it could be they've changed their focus on the age range and cars they want to insure and you've fallen out of that zone entirely, hence a big bump in insurance.

As you've said, don't bother calling them, a waste of time. Just go online to a comparison website and you'll get a much cheaper deal in a much quicker time and it'll all be sorted for another year.

 

[P0LKR]

Thanks chaps.

My insurance is with Elephant. I agree that their renewal quote is ludicrous. I won't waste any time negotiating with them; there's no way in hell they'll reduce their quote by £2,000 just to be competitive.

Admiral is the sister company to elephant but I bet if you got a quote from Admiral it would be similar to your elephant quote last year. I spent every year getting a quote from the sister company and then phoning back the insurer at the time. They just match it and being the sister company there is no need to send proof of no claims etc.

 

[Seastormer]

I usually swap companies every year, but Esure offered a renewal at £210 which was less than last year and cheaper than anyone else, so I have auto renewed for the first time. That's with 3 points (SP30) and being swiped by a untraced artic driver on a round a bout within the last two years.

 

[Richie1985]

Just make sure you let your current insurer know that you do not want them to auto-renew your policy.
A lot of the time they will do this automatically without you knowing and then charge you a cancellation fee.

 

[ZK_FR150]

Its not just car insurance it happens in most insurance where auto-renewal is in place, they hoping you forget to shop around and just get stung with the renewal price.
More profit is generated on renewal than new business this way.
Try putting all your details in on your current insurers website as if you was a new customer and see what price it comes to, 9 outta 10 its gonna be cheaper than the renewal quote they gave you.
You don't have to renew with your insurer and there is no fee to cancel as long as it's cancelled on your renewal date.

There should also be a no charge 14 day cooling off period as well in case you do wish to cancel after you've renewed either on purpose or without knowing

 

[kiddo]

I play the game every year with all insurance products. Renewal quote lands usually with Increased premium. Search comparison websites for quotes and the armed with quotes ring my current insurance provider and ask them to match or beat. To be fair my car/bike insurance broker has beaten the quotes every year. A royal pain in the arse but I save a few quid so it's worth it.

 

[G17RY]

I think it should be mandatory that they give you the option to ditch the auto renewal at inception. This pish about they're doing you a favour because you may forget to renew I just don't buy. I'll be getting mine next month hopefully sub £200.


Sent from my iPad using Tapatalk

 

[niggle]

Try putting all your details in on your current insurers website as if you was a new customer and see what price it comes to, 9 outta 10 its gonna be cheaper than the renewal quote they gave you.

Did this for years with the Direct Line Group. "New customer" discount every year. Couldn't help chuckling to myself as I posted them their own proof of NCB.

 

[J500ANT]

Don't forget to see if you can buy via Quidco and get some cashback too!

 

[Pinky]

Only thing they can try to charge you is a cancellation fee if it auto renews before you cancel. Cheeky bstards as usual.

 

[dids]

My insurance is up in June so I've started looking around, last year i payed £269 with Direct Line who have not sent me a renewal yet.Im now get prices of £450 -£500 for similar cover so its double in a year and the car is a year older so should be worth a bit less.Its a good call about Quidco I use them all the time it takes a while for the money to clear but you do get it.

 

[JACUPRA280]

So after emailing them to cancel, they reduced the premium quote by £174.99 - how nice of them, they are now only £1,900 off the cheapest quote I've had. Ludicrous.

Thanks for all the replies guys.