Is this the Great Insurance Con?

[Orwell72]

Since I move onto my property last November because my partner had to make a claim on her contents insurance we transferred her policy and I had a separate Buildings cover both arranged though the AA.

At the end of last month the contents insurance expired and our intention was to add our contents to our building policy so we could run a building/contents cover.

In steps the AA who claim they have sent us a renewal letter ( be this be the fault of them or Royal Mail we have not had this letter. The first communication was a letter to say that the policy had been set up.

We called the AA and the case seems to be to difficult for the gentleman to handle and he said that he would call me on the Monday.

Monday came and went and my partner had a letter had a letter from AA telling her she was to be charged £12 fee as she had cancelled her Direct Debit.

So I called the AA and explained that we wished to combine our building and contents cover.

I was told to my amazement that it would cost me to cancel the new policy as this policy had been set up by default as listed in renewal letter (letter not got). And that all customers that pay by direct debit have their policies automatically renewed.

I asked where this was agreed in writing and the gentleman on the end of the phone proclaimed that it was part of the Credit agreement as agreed over a year ago and the amount of that agreement paid off. Is this right or is this sales poppycock.
How is it that this company can automatically choose that I will be there customer almost without my consent does anyone know where I stand?

[Conniff]

Oops - wrong thread

[gyzmo]

It is common practice for insurers to have a clause stating the policy will automatically renew unless you call to cancel. It is a practice I am against and which to me goes against contract law and the essence that agreement must be communicated (yes, I know it was accepted first off, but a renewal is a new contract and I feel is different).

However, you shuld have received detailsof the new premium and changes in cover. A complaint letter should be sent to them. someone else with more knowledge on this will come along and provide more details.

[2Grumpy]

In the mean time, unless you have done something about it, your contents aren't covered

It might be worth while reminding them that you didn't get the promised call back to get this sorted beforehand.

Would it be cheaper to go elsewhere for a year again? A place in Norfolk & another one with a red telephone are usually fairy cheap. I would have expected a discount for having 2 policies, not to get a cancellation fee.

Grumpy