RAC Car insurance

[Coldicote]

I've had a letter from the RAC telling me that my car insurance will renew in December - "Relax - you're covered for another year" etc. etc. "Check the information provided ....... We'll automatically renew your cover for your and take your payment". They no doubt have my payment detail from the previous year, but it seems to me WRONG that they or anyone else can help themselves to payment from my account without there being a direct debit mandate. I'm probably not alone. How do others deal with this?

[Nibble]

I can't remember the terminology but apart from direct debit, your giving them you payment details last time does (IMO) give them permission to use them again unless you tell them otherwise. We tend to change our insurances each year to get the best deal so we tell the other company in good time that we are not renewing. I'm sure someone else will give you the correct terminology.

[mike11111]

You must have set up a direct debit arrangement at some point or they couldn't do this.

[Coldicote]

Direct Debit mandates are listed on line with my banking information and this is not among them.

[ABerrant]

As Nibble states, a condition of your current policy is that they will continually renew unless you instruct otherwise. You entered into that agreement along with all other contractual conditions when you took out the policy.

Check the wording of your policy and it will be there.

[redcrx]

did you pay by credit card, they can also take payment from that if you havnt told them you dont want to renew.

[ABerrant]

View Page 4 of this sample RAC policy...

http://media.rac.co.u...nce_policy_sample.pdf

[Coldicote]

Thank you ABerrant. Page 4 of the sample policy gives the answer - it is easy to miss the point with so much to read. I see I can opt out of that system but, even so, think it's a bit of a cheek that RAC take it upon themselves and I would feel better about it if there was a proper debit mandate that I could control and cancel if I wished. It is after all my money and my account.

[ABerrant]

It is a common feature amongst current motor insurance policies - insurers use the argument that automatic renewal means that it removes the likelihood of a lapse in cover when drivers accidentally fail to renew, which nowadays could result in your car being seized and/or crushed in addition to prosecution.

TBH the automatic renewal is as easy (if not easier) to control as mandates etc. The opt-out only requires a phonecall to the Freephone number.

[Coldicote]

I take your point ABerrant and thank you for your contribution to this discussion. However, a phone call seems a casual way of dealing with someone who proposes to help themselves from my account. Without a formal mandate, known to my bank, it makes me feel I am not properly in control of my affairs. Not sure what I shall do about this.

[boxtops]

If you don't want to phone, write to them, coldicote - send it RD if you want - then you will have something on file to refer back to.

[theshedman]

Hi, mine is like this too. After the first year it goes out every year afterwards unless you tell them you don't want to renew as some have already said. If I were you and was still thinking of getting the renewal I would also go on-line and get another quote from them as if you were a new customer as quite often the new quote will be quite a bit lower then the one they have sent you. If it is then get on the phone to them and tell them, usually they give you the new on-line one as they don't want to lose a customer. Mine told me one year that the on-line quote was for new customers only so I told them not to renew and I would get the one from the net which included free car breakdown cover, he had quick chat with supervisor and then told me I could have the cheaper quote and car cover. It's worth looking and asking these days as loyalty means nothing to them any more.

[Coldicote]

Interesting answers thank you. Indeed I do have now other quotes and intend to make representations. I went to: http://www.moneysupermarket.com/

[WhiteBears]

i agree with you there that it is Wrong for company to help themselves to payment from our accounts.
MCAfee used to automatically take money out of my account when it was due for a renewal. (i wasnt even on Direct Debit). i used to panic when i receive a text saying money have been taken out of my account. then when i checked my bank account it turns out to be McAfee. I sent them an email to complain and said i would rather receive an email reminder, not just help themself with my money, they came back and said a majority of their customers prefer it this way. What made it worse was i paid the full price rather than the discounted price. i made a futher complaint and asked to refund me the full lot back. They refunded me the full lot back, and i went to pay for the cheaper price (50% cheaper!!!!) as i was about to make a payment there was this button which i had to Select 'i agree' that they will automatically take money out of my account for the next renewal. The other button was 'Cancel'. i thought that was out of order. so i clicked 'i agree'. the following year it happened again, i completely forgot about it and had another panic attack, as i received a text from my bank that £80 was taken out of my account. the following day, again it was from McAfee. i wrote then another email. They came back and gave me a full refund.

i am now with Kaspersky, their service is birlliant, they send you an email reminder when its due for a renewal and gives you a loyalty customer discount! :)

[bushbaby_de]

It's called a continuous authorisation and would have been in the small print of the original contract you signed - if you don't agree with it then don't sign! You are usually given a time window in which you can tell them you don't wish to renew.