# Automatic renewal and cooling off periods



## JanusGold (20 Jan 2017)

Hi,

Finding it hard to get an answer on the following.

I received a car insurance renewal letter from FBD. Was a lot dearer than before so I got another quote from another company and went with that as it was better.

The disk for FDB has arrived at this point and after a phone call FDB said that they cannot cancel until they get back the disk and certs etc. So they were returned. They had also taken a direct debit which they said would be returned except for 2/3 days cover which is fine. Basically I did not cancel in time for the automatic renewal date.

So the forms were returned within 3/4 days of the policy start date. However FDB took more money via direct debit and then cancelled the policy. They claim that there is a 20% cancellation charge on the yearly cost and that is why they took the remaining money.

So the question is. What are your rights under Irish law for automatically renewing policies. In particular for motor insurance?

Do you have to cancel within the month prior when you get the renewal notice or can you cancel within 14 days of the policy renewal date as is the minimum standard cooling off period for new policies.

I appreciate that this is not a new policy but if you are entering into a new contract for the year where the premium is different and you are required to make any new disclosures etc which make effect the policy, then does a new cooling off period apply?

Thanks in advance.

JanusG.


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## Leo (20 Jan 2017)

These automatic renewals are common in telecoms / TV service providers where direct debits are chosen as the payment method. Read the T&Cs to the contract you signed when taking out the insurance. They will no doubt cover this automatic renewal and detail what you need to do to cancel along with cancellation charges.


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## Ravima (1 Feb 2017)

Read the policy conditions. It should be very clear what the cancellation charges are.


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## Seagull (2 Feb 2017)

Did the renewal letter make it clear that the policy would auto-renew unless you cancelled? If not, get back to them requesting a full repayment.


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## Leo (3 Feb 2017)

Seagull said:


> Did the renewal letter make it clear that the policy would auto-renew unless you cancelled? If not, get back to them requesting a full repayment.



The agreement made when taking it out initially is far more important as that constitutes an acceptance of the terms & conditions. If there was no such renewal term when initially taking out the policy, it doesn't matter what they write in a renewal letter as it can't overrule the original agreement.


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## Seagull (7 Feb 2017)

I'd agree, but I suspect that if this were put to the test in court, it would be found that having an auto-renewal in the initial contract and no reminder in the renewal letter borders on sharp practise, and would probably be found in the policy holder's favour.

If there's nothing in the original agreement, definitely ask them for a full refund.


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## Leo (7 Feb 2017)

Seagull said:


> I'd agree, but I suspect that if this were put to the test in court, it would be found that having an auto-renewal in the initial contract and no reminder in the renewal letter borders on sharp practise, and would probably be found in the policy holder's favour.



Advice from the CCPC and the European Consumer Centre state they are perfectly legitimate and consumers have no redress if it can be shown automatic renewals are covered in the original T&Cs.

The NCA as it was back then made some noise about automatic contract renewals in 2014, particularly relating the gym memberships which were hitting the headlines at the time. The unfair terms guide they published as a result only calls out renewals without consumer agreement as falling under what they consider unfair.


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