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[Finance] The Perils of Auto Renewal



marlowe

Well-known member
Dec 13, 2015
4,342
I always avoid auto renewal for my car insurance as the auto renewal price is always much higher than it would be if you were insuring as a new customer. Also one year I was inadvertently registered for auto renewal without my knowledge so when I renewed my insurance with another company after shopping around I ended up with two car insurances. Fortunately I noticed and managed to cancel the auto renewal one and got a refund but I could have easily missed it if I hadn't checked my credit card bill carefully.

For some reason I let myself slip into auto renewal for my AA membership as I just assumed that it would be a standard price for everyone for each level of service... BIG mistake.

When I checked my credit card bill my AA membership renewal had been charged at a WHOPPING £498 25.!!!

I remembered when it was high last year at £451.74 I rang them to question it and asked them to give me a breakdown of the cost of each service which included joint membership, home start and national recovery. The totals they gave me did indeed come to £451.74, so I just assumed that AA membership had rocketed from what it used to be.

But this year when I was charged £498.25 I thought this isn't right, so rather than ring them I went on their website to find out how much it would cost as a new customer. I got an online quote which came to just £180.48. So I was being charged £317. 77 more than a new customer.

That was taking the piss. So much for customer loyalty as I've been with the AA for around 30 years.

So this time I rang them armed with the knowledge of the online quote and confronted them with it. They said the £180.48 was a special offer for new customers only. But after I threatened to cancel my membership she agreed to refund the difference.

Obviously when I had rung them the previous year and asked for a breakdown they gave me a breakdown of what they were charging me personally for each service and not a breakdown of what each service would cost as a new customer.

Anyone else been stung by auto renewal?
 




zeemeeuw

Well-known member
Apr 8, 2006
795
Somerset
Should have threatened to report them to the Financial Control Authority, sounds like they are in breach of the new rules:


(don't know if it applies to breakdown insurance but it should).
 


Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patron
Oct 8, 2003
56,728
Faversham
I always avoid auto renewal for my car insurance as the auto renewal price is always much higher than it would be if you were insuring as a new customer. Also one year I was inadvertently registered for auto renewal without my knowledge so when I renewed my insurance with another company after shopping around I ended up with two car insurances. Fortunately I noticed and managed to cancel the auto renewal one and got a refund but I could have easily missed it if I hadn't checked my credit card bill carefully.

For some reason I let myself slip into auto renewal for my AA membership as I just assumed that it would be a standard price for everyone for each level of service... BIG mistake.

When I checked my credit card bill my AA membership renewal had been charged at a WHOPPING £498 25.!!!

I remembered when it was high last year at £451.74 I rang them to question it and asked them to give me a breakdown of the cost of each service which included joint membership, home start and national recovery. The totals they gave me did indeed come to £451.74, so I just assumed that AA membership had rocketed from what it used to be.

But this year when I was charged £498.25 I thought this isn't right, so rather than ring them I went on their website to find out how much it would cost as a new customer. I got an online quote which came to just £180.48. So I was being charged £317. 77 more than a new customer.

That was taking the piss. So much for customer loyalty as I've been with the AA for around 30 years.

So this time I rang them armed with the knowledge of the online quote and confronted them with it. They said the £180.48 was a special offer for new customers only. But after I threatened to cancel my membership she agreed to refund the difference.

Obviously when I had rung them the previous year and asked for a breakdown they gave me a breakdown of what they were charging me personally for each service and not a breakdown of what each service would cost as a new customer.

Anyone else been stung by auto renewal?
Home insurance 1400*. Twelve years ago.

When I phoned they offered 600. I got it elsewhere for £250.

*Trouble is it had been going up £200 yearly for several years so I had been severely soaked :-(
 


WATFORD zero

Well-known member
NSC Patron
Jul 10, 2003
27,946
The Perils of breakdown cover !

On our three cars, two have breakdown cover as an extra on the insurance (approx £30-£40 IIRC) and one has breakdown cover for £40 with an excess of £25 if we use it. In 40 years of driving I have used my breakdown cover once when I first bought an old classic sports car.

Your breakdown cover is more than any of our car insurances and one is a four litre V8 sports car 😲

Shop around on every insurance every year. 20 mins on a search engine (unless you're earning >£600 per hr, in which case pay someone else to do it) :wink:
 
Last edited:


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
36,063
sad part of modern life, have to switch providers for most insurance every year. i usually look at their quote, if it's ~10% i'll let it go even if there might be better deal. of course even this means after 5 years i'm paying 50% more. breakdown is annoying having to bounce between AA and RAC every year, they always want to increase by 50% and switching takes less time than phoning to complain.
 




marlowe

Well-known member
Dec 13, 2015
4,342
Home insurance 1400*. Twelve years ago.

When I phoned they offered 600. I got it elsewhere for £250.

*Trouble is it had been going up £200 yearly for several years so I had been severely soaked :-(
I'm surprised you didn't phone them the previous year when it was a mere £1200
 


AmexRuislip

Retired Spy 🕵️‍♂️
Feb 2, 2014
34,983
Ruislip
I always avoid auto renewal for my car insurance as the auto renewal price is always much higher than it would be if you were insuring as a new customer. Also one year I was inadvertently registered for auto renewal without my knowledge so when I renewed my insurance with another company after shopping around I ended up with two car insurances. Fortunately I noticed and managed to cancel the auto renewal one and got a refund but I could have easily missed it if I hadn't checked my credit card bill carefully.

For some reason I let myself slip into auto renewal for my AA membership as I just assumed that it would be a standard price for everyone for each level of service... BIG mistake.

When I checked my credit card bill my AA membership renewal had been charged at a WHOPPING £498 25.!!!

I remembered when it was high last year at £451.74 I rang them to question it and asked them to give me a breakdown of the cost of each service which included joint membership, home start and national recovery. The totals they gave me did indeed come to £451.74, so I just assumed that AA membership had rocketed from what it used to be.

But this year when I was charged £498.25 I thought this isn't right, so rather than ring them I went on their website to find out how much it would cost as a new customer. I got an online quote which came to just £180.48. So I was being charged £317. 77 more than a new customer.

That was taking the piss. So much for customer loyalty as I've been with the AA for around 30 years.

So this time I rang them armed with the knowledge of the online quote and confronted them with it. They said the £180.48 was a special offer for new customers only. But after I threatened to cancel my membership she agreed to refund the difference.

Obviously when I had rung them the previous year and asked for a breakdown they gave me a breakdown of what they were charging me personally for each service and not a breakdown of what each service would cost as a new customer.

Anyone else been stung by auto renewal?
We nearly got caught out a few years back.
We've learnt now that to ask for our card details to be removed once said insurance has been purchased.
 


dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
56,055
Burgess Hill
Home insurance 1400*. Twelve years ago.

When I phoned they offered 600. I got it elsewhere for £250.

*Trouble is it had been going up £200 yearly for several years so I had been severely soaked :-(
Happened to me, around the same time I think…….Prudential. Most I paid was something like £800, but got more than 2/3rds off it by eventual looking elsewhere.

Re AA cover, it’s included with my ‘added value’ bank account. Total cost is about £275pa (monthly fee) but still decent value as also includes annual worldwide travel insurance and mobile phone insurance.
 




studio150

Well-known member
NSC Patron
Jul 30, 2011
30,324
On the Border
No.

You should be told what the renewal price is ahead of auto-renewing, so have plenty of time to consider the price and seek alternative offers if required.

It's just laziness if you do nothing and just let it auto-renew without considering the renewal offer,
 


marlowe

Well-known member
Dec 13, 2015
4,342
Should have threatened to report them to the Financial Control Authority, sounds like they are in breach of the new rules:


(don't know if it applies to breakdown insurance but it should).
That's interesting. Wasnt aware of that. Not sure many are complying with the new rule tho
 


METALMICKY

Well-known member
Jan 30, 2004
6,940
I always avoid auto renewal for my car insurance as the auto renewal price is always much higher than it would be if you were insuring as a new customer. Also one year I was inadvertently registered for auto renewal without my knowledge so when I renewed my insurance with another company after shopping around I ended up with two car insurances. Fortunately I noticed and managed to cancel the auto renewal one and got a refund but I could have easily missed it if I hadn't checked my credit card bill carefully.

For some reason I let myself slip into auto renewal for my AA membership as I just assumed that it would be a standard price for everyone for each level of service... BIG mistake.

When I checked my credit card bill my AA membership renewal had been charged at a WHOPPING £498 25.!!!

I remembered when it was high last year at £451.74 I rang them to question it and asked them to give me a breakdown of the cost of each service which included joint membership, home start and national recovery. The totals they gave me did indeed come to £451.74, so I just assumed that AA membership had rocketed from what it used to be.

But this year when I was charged £498.25 I thought this isn't right, so rather than ring them I went on their website to find out how much it would cost as a new customer. I got an online quote which came to just £180.48. So I was being charged £317. 77 more than a new customer.

That was taking the piss. So much for customer loyalty as I've been with the AA for around 30 years.

So this time I rang them armed with the knowledge of the online quote and confronted them with it. They said the £180.48 was a special offer for new customers only. But after I threatened to cancel my membership she agreed to refund the difference.

Obviously when I had rung them the previous year and asked for a breakdown they gave me a breakdown of what they were charging me personally for each service and not a breakdown of what each service would cost as a new customer.

Anyone else been stung by auto renewal?
AA Have been pulling that tedious trick for years and as you've discovered it's totally set up for people who are just a little careless/forgetful or perhaps more money than sense. What's more insidious is older folks just accepting it.

Every year I get a ridiculous renewal quote and I politely point out previous years cost and if they try to dig in I politely suggest cancelling.
 




marlowe

Well-known member
Dec 13, 2015
4,342
No.

You should be told what the renewal price is ahead of auto-renewing, so have plenty of time to consider the price and seek alternative offers if required.

It's just laziness if you do nothing and just let it auto-renew without considering the renewal offer,
Its not always that simple. Sometimes life just gets on top of you, especially if you're dealing with a lot of shit in your life... or in your head
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
36,063
No.

You should be told what the renewal price is ahead of auto-renewing, so have plenty of time to consider the price and seek alternative offers if required.

It's just laziness if you do nothing and just let it auto-renew without considering the renewal offer,
they're getting sneaky now. one notified me about 3 months in advance. no problem, put to the side to deal with closer the time. 3 months 1 week later... oh bugger.
 


WATFORD zero

Well-known member
NSC Patron
Jul 10, 2003
27,946
Happened to me, around the same time I think…….Prudential. Most I paid was something like £800, but got more than 2/3rds off it by eventual looking elsewhere.

Re AA cover, it’s included with my ‘added value’ bank account. Total cost is about £275pa (monthly fee) but still decent value as also includes annual worldwide travel insurance and mobile phone insurance.

If you have time, check out the deals on current accounts as there's some great 'add ons'. I currently have three current accounts and just move the minimum required between the three accounts on standing orders (or direct debits) to keep them active. This post has just reminded me to review these.

I appreciate not everyone has the time, but if you can put aside an hour a month, you can get the best out of the systems (best renewal prices on everything is normally 20-30 days before renewal).

Stick everything on a spreadsheet and just send me 10% commission :thumbsup:
 




dazzer6666

Well-known member
NSC Patron
Mar 27, 2013
56,055
Burgess Hill
If you have time, check out the deals on current accounts as there's some great 'add ons'. I currently have three current accounts and just move the minimum required between the three accounts on standing orders (or direct debits) to keep them active. This post has just reminded me to review these.

I appreciate not everyone has the time, but if you can put aside an hour a month, you can get the best out of the systems (best renewal prices on everything is normally 20-30 days before renewal).

Stick everything on a spreadsheet and just send me 10% commission :thumbsup:
I definitely couldn’t be arsed to do all that 🤣
 


marlowe

Well-known member
Dec 13, 2015
4,342
The Perils of breakdown cover !

Your breakdown cover is more than any of our car insurances and one is a four litre V8 sports car 😲

Shop around on every insurance every year. 20 mins on a search engine (unless you're earning >£600 per hr, in which case pay someone else to do it) :wink:
I do normally for everything else. I remember how I slipped into auto renewal with the AA now. One day I needed to call them and when I did they told me my membership had lapsed so they offered to renew my membership there and then so I could use them, and they suggested I go on auto renewal so I wouldn't get in that situation again so I just went for it.
 


Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patron
Oct 8, 2003
56,728
Faversham
I'm surprised you didn't phone them the previous year when it was a mere £1200
I didn't realise this was an overcharge. I realised only when discussing it with a mate :down:

Makes me wonder what some people are paying who are even less switched on then me....
 






Weststander

Well-known member
NSC Patron
Aug 25, 2011
69,910
Withdean area
Try to avoid continuous card payments, not always possible.

Haven’t bought breakdown cover since the dumb time I ran out of petrol in the Sussex sticks ten years ago. Joined the AA and paid for it!

Have been a victim of other smaller financial ‘scams’ with O2, also a Netflix incident where someone unknown tagged onto our account and added themselves at a cost to us. I took an age to spot it.
 




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