Steve Rotheram MP calls on insurers to stop ripping-off Liverpool, Walton drivers by £1,093,296(September 23, 2015)
- Research shows insurers are automatically renewing policies of thousands of drivers in Liverpool, Walton
- Liverpool, Walton drivers could save £1,093,296 by not being auto-renewed
- Steve Rotheram MP calls on insurers to stop the auto-renewal rip-off
With the Financial Conduct Authority set to report within weeks on the use of auto-renewals in the motor insurance market, Steve Rotheram MP is taking action to save Liverpool, Walton drivers £1,093,296 on their car insurance.
Research by price comparison website MoneySuperMarket found auto-renewal of car insurance policies is costing UK drivers £1.3 billion, and that practices used by many insurers make it harder for consumers to get a better deal. Steve Rotheram MP is calling on the regulator to require insurers to clearly ask consumers whether they want to opt-in to auto-renewal when they first buy their policy.
MoneySuperMarket’s report shines a light on the poor practices of insurers, revealing that people often have no idea that they’re agreeing to auto-renewal when they first buy their policy, and would have no way of opting out even if they did. When renewal time arrives, the letter or email they get from their insurer can be confusing and misleading, and even conceal significant changes to their policy.
Cancelling an auto-renewed policy can be difficult and costly, with some providers charging cancellation fees or driving customers to expensive premium rate telephone numbers. Most insurers do not provide an online cancellation process, despite allowing customers to buy their policies online in the first place.
62 per cent of consumers say auto-renewals deter them from shopping around for a more affordable policy. And almost six million drivers (23 per cent) automatically renewed their car insurance with their existing provider when their policy was last up for renewal, without checking a single other quote.
Steve Rotheram MP is calling on the Financial Conduct Authority to take decisive action to stop the auto-renewal rip-off.
Steve Rotheram MP said:
“It’s unacceptable that drivers in Liverpool, Walton are losing £1,093,296 because of unfair practices by the insurance industry. This is money that many can’t afford to waste. The regulator must take decisive action to put drivers back in control of their insurance. People shouldn’t have payments taken automatically from their accounts unless they have given their explicit consent. Insurers need to do more to ensure it doesn’t happen”.