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Automatic renewals
It has now become more or less common practise for insurance companies to automatically renew their clients car insurance using existing credit/debit card/direct debit nformation that they hold.
What this means in practise is that you now have to opt out of your car insurance renewal rather than optting in.
This has several advantages to the insurance company:
• You have to phone the company to cancel at renewal, there by giving them the opportunity to talk you out of it.
• There will be a percentage of clients that do not realise that their insurance has been automatically renewed when they did not want the policy, for whatever reason. Some of these people will not notice the payment on their credit/debit bank statement and the insurance companies will literally be making money with no risk of a claim.
• Some insurance companies, in particular Budget Insurance who also handle HSBC, Mark & Spencer, Yes Insurance, etc. will charge clients if they notify after the renewal date, that they did not wish to renew their policy.
In fact it is fair to say that the feedback from clients tells us that Budget Insurance are the worst examples of insurance companies impossing large fees for little work without accepting any explanations or reasons not to pay. They are totally unsympathetic to their clients needs.
It is becomming such an issue with Budget Insurance that clients should consider if they really want to be insured with them. |
