My car insurers say they'll renew my cover unless I say otherwise. Isn't that illegal?

[taryn31]

To me, this stinks of INERTIA SELLING which was outlawed a few years ago. A quick look at Wikipedia shows that this seems to come under the Distance Selling section of the Consumer Protection Regulations of 2000.
INERTIA SELLING means that the seller takes it for granted you want to buy his product, and charges you for it, whether you have ordered it or not. In the case of my car insurance, the seller claims to have my interest at heart. In very small print on the contract (smaller than what you are reading now), I read that I will be charged if the cover is issued (without my consent), if I chose to buy cover elsewhere.
This practice is so close to dishonesty that customers need to be very alert when buying insurance. I admit to being almost OBSESSIVE about cutting motoring costs. But how many other motorists end up being caught out in this way?
We can always rely upon Big Business to find a way to con us. It wouldn't surprise me at all to find that they have found a way around the Inertia Selling bill of 2000.

And isn't there something repugnant about an insurance company retaining details of my credit card for a whole year so that they can charge me without my consent? This is no better than those crooked restaurants in holiday resorts which used to copy card details then charge transactions to the card after the customer had returned home.

[ricki]

To me, this stinks of INERTIA SELLING which was outlawed a few years ago. A quick look at Wikipedia shows that this seems to come under the Distance Selling section of the Consumer Protection Regulations of 2000.
INERTIA SELLING means that the seller takes it for granted you want to buy his product, and charges you for it, whether you have ordered it or not. In the case of my car insurance, the seller claims to have my interest at heart. In very small print on the contract (smaller than what you are reading now), I read that I will be charged if the cover is issued (without my consent), if I chose to buy cover elsewhere.
This practice is so close to dishonesty that customers need to be very alert when buying insurance. I admit to being almost OBSESSIVE about cutting motoring costs. But how many other motorists end up being caught out in this way?
We can always rely upon Big Business to find a way to con us. It wouldn't surprise me at all to find that they have found a way around the Inertia Selling bill of 2000.

And isn't there something repugnant about an insurance company retaining details of my credit card for a whole year so that they can charge me without my consent? This is no better than those crooked restaurants in holiday resorts which used to copy card details then charge transactions to the card after the customer had returned home.

All insurance companies do this nowadays, along with mobile phone companies, SKY and the Electricity & gas providers.

You have agreed to the T&C of your insurance policy and if you'd bothered to read your renewal notice you'll have sen that they gave you ample chance to cancel.

With all the sh!t that's going on in the world, is this all you can find to rage about?

[choviohoya]

You really need to read your renewal notice before flying off in a rage. It bears no resemblance what so ever to inertia selling as you are instructed what to do in the notice.

Cover is only renewed if you do nothing, if you don't want it, notify them and no charge will be made.

[ruelle]

You are right to be annoyed but a lot of this is them trying to pull a fast one. Even if you call customer services and tell them not to do this you'll get mails saying thank you for renewing etc. just keep a check on your credit card statements to be sure.

[treasigh]

don't use your credit card to pay your insurance premiums, problem solved

[doran]

I suggest you stop wasting so much time and energy being angry and upset when simple things can be done. For example DO NOT GIVE THEM A CREDIT CARD NUMBER. your best rates will come from a local agent write a check. This solves many or what you consider problems. And no insurance company is going to write a policy if they will not get paid. Simply draft a short but to the point letter. That you have dropped coverage due to thier greed/imcompetence/stupidity/ or because you bought a policy somewhere else. sign and date it and keep a copy of it for later. With no credit card number they have nothing. see how simple? dont make it easy by giving them a credit card and you keep control. by cancelling coverage in writing.

[hewlett]

In my experience the insurance company writes to let you know that the policy is due for renewal and says that unless you tell them otherwise it will assume that you want to renew with them again. The second thing that happens to me every year is that I get junk mail from all the other insurers - so you can't say that you don't get told it is time to renew.

It is covered by distance selling and again I have always been told that I have the 14 days to cancel the contract.

[archy]

'Inertia selling' refers to unsolicited goods or services. A renewal, by the very terms of it's nature, cannot be unsolicited due to the policy holder's prior agreement to the terms in previous years. Renewal by default is the usual procedure and has no relevance to inertia selling, as is certainly not illegal. It's the renewal of a service you've already been using & paying for, and you can't exactly quote wikipedia if you're trying to quote some form of legal precedent.
The interesting part is
"In very small print on the contract (smaller than what you are reading now), I read that I will be charged if the cover is issued (without my consent), if I chose to buy cover elsewhere.
This practice is so close to dishonesty that customers need to be very alert when buying insurance"

This means that your insurer will charge a fee if you don't cancel your renewal, but subsequently do so as you've purchased cover elsewhere. This is a standard term, and all insurers will charge a penalty for cancellation. It's not dishonest - if it was, they wouldn't tell you, would they?
Yes, you have to be 'very alert' with buying insurance - both in terms of cost & in terms of whether or not you have the cover you want. On Yahoo Answers, we regularly see people who don't understand what is & isn't covered by their policy, and who don't understand how & when premiums are payable, and what cancellation entails. This isn't because the insurers are devious, it's usually because those taking out policies are stupid, ignorant or just don't read what they sign.
It only takes one phone call, letter, internet transaction or fax to cancel a policy - I don't see what the problem is.
There are some business, large & small, as well as individuals that make a good living from being con men, but in my experience it's more often the greed, stupidity & ignorance of those who allow themselves to be conned who are usually to blame.
Your insurer CAN NOT retain sufficient CREDIT card information to renew your insurance year on year - they would need the CVV2 security number. They can, however, retain bank details if you have given prior consent for them to DEBIT your account for services.