Unauthorised Car Insurance Renewal

[marleymouse]

My neighbour had car insurance with a company which he was paying Direct Debit. Due to family trauma & his sons disability he acquired a motobility vehicle so put his old car up for sale & tried to cancel the insurance which only had a couple of months left. He was told there would be a cancellation fee so decided to let the insurance run its course while he was trying to sell it. He subsequently sold the car & thought no more about the insurance. He has now discovered the insurance company automatically renewed the insurance past the annual renewal date & continued to take direct debit payments which he initially had not realised. He contacted them to say he had not authorised renewal & no longer has the car but they maintain they had sent him an email giving him option to cancel so they automatically renewed & he must now pay £300 if he cancels. He did not get the email they claim they sent him and they admit they never sent him a letter despite him never being paper free with this company. They also have a record of his previous call saying he wanted to cancel & was planning to sell the car prior to the renewal date so they knew he had no intention or need to renew.
Does he have grounds to not pay the cancellation fee they are demanding?

[des8]

Re: Unauthorised Car Insurance Renewal

One of the problems with automatic renewals!

His earlier attempt to cancel the insurance would not have been recorded as he did not proceed with it, and so automatic renewal would have gone ahead.

If he has exhausted the complaints procedure of the insurer he could approach FoS (http://www.financial-ombudsman.org.uk)

[marleymouse]

Re: Unauthorised Car Insurance Renewal

One of the problems with automatic renewals!

His earlier attempt to cancel the insurance would not have been recorded as he did not proceed with it, and so automatic renewal would have gone ahead.

If he has exhausted the complaints procedure of the insurer he could approach FoS (http://www.financial-ombudsman.org.uk)

Thank you for that des8 I will pass that info on. Was it ok for them to just send email with no back up letter? He says he has never agreed to or signed up for paperfree.

[outlawlgo]

Re: Unauthorised Car Insurance Renewal

....He did not get the email they claim they sent him and they admit they never sent him a letter despite him never being paper free with this company.

Predated letters can be produced easily, whereas correspondence sent electronically does not (I shouldn't think) provide that flexibility....

Your neighbour could ask the company to save the email as a file (.eml) and send it as an email attachment to inspect in order to verify their claim.

[marleymouse]

Re: Unauthorised Car Insurance Renewal

Predated letters can be produced easily, whereas correspondence sent electronically does not (I shouldn't think) provide that flexibility....

Your neighbour could ask the company to save the email as a file (.eml) and send it as an email attachment to inspect in order to verify their claim.

Thank you I will advise him to do that.
From what I can glean it would seem the broker is ok & accepted he did not renew but the actual insurers are not & they are chasing him for cancellation fee .

[des8]

Re: Unauthorised Car Insurance Renewal

I doubt legally it makes no difference as long as he was notified.
He claims he was not, (no letter and no email received) and as he should not have been expected to check his emails (after all he had not signed up for paperless) the insurers should IMO have sent a letter.
Try FoS (free if sometimes a lengthy process)

Who are the insurers involved...

[marleymouse]

Re: Unauthorised Car Insurance Renewal

I doubt legally it makes no difference as long as he was notified.
He claims he was not, (no letter and no email received) and as he should not have been expected to check his emails (after all he had not signed up for paperless) the insurers should IMO have sent a letter.
Try FoS (free if sometimes a lengthy process)

Who are the insurers involved...

Not sure but will check with him later & let you know.