"Automatic" car insurance premium rollovers

Hi everyone,

Possibly this has been discussed elsewhere on AAM, but I'm wondering if anyone else has noticed an increasing number of insurers "automatically" rolling over car insurance year on year.

My policy was set to expire on 1/8/18. I was away on holidays when the letter arrived during July advising that the premium had been increased and that if I didn't do anything the direct debits would continue to be taken from my account and my insurance would continue.

I called them on my return from holidays (3 days before the policy "rolled over") advising that I wasn't going to take up their offer. They advised that it was possible that money would be taken from my bank account given that I hadn't told them in time to stop the deduction.

Anyway I got onto my bank and amended the DD to refuse any attempt at taking further money from my account.

Just wondering if anyone else has encountered this - I've seen it twice now with different insurance companies.

How can that be legal? Is there anything in your contract that allows them to do this and is it linked somehow to the fact you're paying by direct debit? If you didn't pay by direct debit how would they be able to do it?

its for convenience for the customer!

Yes, had a lot of hassle with AA trying to "cancel" the auto renewal.
They don't make it easy to find a simple way to contact them any more.
I submitted a message through the MyAA site, and realised I then had no record of it but for the screenshot I took before sending.
Needless to say they didn't have a record of it. long phone calls waiting on hold to cancel it. Still tried to charge me for the privilege!

Ended up cancelling my membership and home insurance with them, because this is no way to treat a current customer. It's time these places started caring about current customers not just potential customers.

I thought these were illegal in Ireland or something very similar to auto rollover the contract.

Amazing how easy it is to sign up to things but to cancel is a nightmare

Usually pretty clearly covered in the small print on the direct debit mandate form, nothing illegal about it.

What if they cancel it and then you have an accident.

They cancelled one of mine without notifying me. I had to reset it up again and its treated as a new customer not as someone with years with the same company.
I didn't have any reason to claim but if I had I may have no been covered.

Since they they always notify me and roll it over, if I don't get in contact.

It is perfectly legal, once included in the original terms and conditions that the customer signed up to, and it's pretty standard across the industry if you pay by monthly DD. I just received my health insurance renewal and it will automatically renew as I paid by DD.

I do think some insurers are lacking in highlighting enough the auto renewal when they send out the notice prior to renewal.

Yet another good reason not to pay anything by DD in my book!