AA Home Insurance. Rant alert!

[Brandane]

In December 2012 I took out house and contents insurance through the AA, paid by debit card.
December 2013 the renewal notice arrives, telling me that for my convenience, I don't need to do anything. Renewal will automatically be taken from my bank account, and by the way, your premium has risen by about 40% .

Needless to say I shopped around and found better cover at a much reduced price. So, I tried to contact the AA by the only option given on their renewal notice, via a 0800 telephone number. I tried twice to contact them, but after waiting for a reasonable time IMO (15 mins) to be connected to a person, I gave up. Instead, I contacted my bank to have the payment stopped, and this was successfully done.

Now, they have wriiten to me demanding £99 payment. I think it is for the insurance cover they say has been in force since December until their realisation that they haven't been paid.

I have no intention of paying a cent, on the grounds that:
They bumped up the premium by an unreasonable amount.
The option for cancelling renewal did not supply a reasonable service.
I had already arranged alternative cover, and therefore AA insurance would have been null and void in any case (IIRC you cannot have multiple insurance policies for one property).

Any advice on where I stand here?

 

[Markymark]

hmm, I can see why you are being charged and they are within their rights unless, as you say, you could not get through to cancel. They may say that 2 calls of 15 minutes is not unreasonable. I would have written to them at the time of cancelling outlining my refusal to renew.

Going forward, NEVER allow any insurance company to auto-renew, I always statye that I will only renew upon my authorisation.

 

[HLaB]

I moved to AA contents because they were the cheapest for me last year, expecting a big hike this year after reading this

 

[Spinney]

Supply them with an invoice for at least £50 for the 2 x 15 mins you wasted on the phone trying to get through to cancel. That was the time you wasted due to their inadequate service. If you do end up having to pay, it will at least cut down the amount!

 

[Roadrider48]

The cancellation process of a lot of these things is geared to making it really awkward for the customer!
Just tell them to "stick it where the sun don't shine"

 

[Cameronmu917772]

Do what the lawyers in this country do. Write a letter then put the number of words at the bottom with an invoice for £99 then tell them you even and any further contact will be priced at you flat rate of £150 an hour lol

 

[Mr Haematocrit]

Get a copy of your phone bill and send them an invoice for the cost of the phone bill and don't forget to charge £40 administration fee

 

[Paul99]

From the info you have provided it would appear that you didn't cancel the renewal so you would be contractually (it is likely to be a clause in last years policy) obliged to pay.

I would write to them, explain the situation and see if they are willing to write off the outstanding time on risk premium. I would include in my letter the fact that the automatic renewal clause is unfair (important word), especially as the premium was increased and the automated telephone cancellation process is too complicated.

I would mention that if they are unable to agree to write off the TOR premium then you will contact the Financial Ombudsman Service to resolve.

Good luck.

 

[400bhp]

You will have to pay.

I'm not really sure why you thought cancelling a direct debit would mean you cancelled the contract. You didn't try very hard to contact them another way.

If you don't there's a very good chance you will be chased for payment and end up going to court.

 

[400bhp]

From the info you have provided it would appear that you didn't cancel the renewal so you would be contractually (it is likely to be a clause in last years policy) obliged to pay.

I would write to them, explain the situation and see if they are willing to write off the outstanding time on risk premium. I would include in my letter the fact that the automatic renewal clause is unfair (important word), especially as the premium was increased and the automated telephone cancellation process is too complicated.

I would mention that if they are unable to agree to write off the TOR premium then you will contact the Financial Ombudsman Service to resolve.

Good luck.

^^this^^ sorry, cross posted.

 

[Markymark]

Sprry to be boring here but you would have drawn attention to it being auto-renew, and you would have had to agree to it. It wouldn't have been some hidden small print so you can;t really complain about that hapenning. The only cause for complaint is whther you tried hard enpugh to cancel. As suggested above, they may say that he 2 calls was not enough, but you could easily have written to them.

As it stands though, I doubt you'll end up having to give them money but it could be a black mark against you.

 

[asterix]

From the info you have provided it would appear that you didn't cancel the renewal so you would be contractually (it is likely to be a clause in last years policy) obliged to pay.

I would write to them, explain the situation and see if they are willing to write off the outstanding time on risk premium. I would include in my letter the fact that the automatic renewal clause is unfair (important word), especially as the premium was increased and the automated telephone cancellation process is too complicated.

I would mention that if they are unable to agree to write off the TOR premium then you will contact the Financial Ombudsman Service to resolve.

Good luck.

Can you enter into a contract by doing nothing? My understanding is that contract law say every contract must have (among other things) both offer and acceptance and that silence does not usually constitute acceptance (see below).

Had you paid the direct debit then that probably would have been acceptance (see Rust vs Abbey Life Insurance). The fact that you cancelled the DD may well have allowed the AA to refuse any claim you made, saying your cancellation was rejection of their offer. Why should they have it both ways?

Whilst the case of Carlill vs the Carbolic Smoke Ball Co established that an offer could be accepted by simply complying with the terms (i.e. purchasing and using the product) I can't see that you have done anything positive to suggest you accept the offer of renewal. Quite the reverse.

I don't believe the AA have a leg to stand on and would tell them to get lost!

ps that said, it is a good idea to positively cancel insurance to avoid such aggro.

 

[Chromatic]

Put in a claim for that damage the strong winds caused the other day and tell them to take the £99 out of that and to forward the balance to you pdq.

 

[Markymark]

Can you enter into a contract by doing nothing? My understanding is that contract law say every contract must have (among other things) both offer and acceptance and that silence does not usually constitute acceptance (see below).

Auto renew would have been agreed to at the time of the original contract. I hate the idea and always opt out, but it's never been added without my knowledge, it's always been asked and I've always declined. I can't imagine AA would be any different.

 

[Brandane]

Auto renew would have been agreed to at the time of the original contract. I hate the idea and always opt out, but it's never been added without my knowledge, it's always been asked and I've always declined. I can't imagine AA would be any different.

I don't recall seeing any choice to opt out. It was IIRC just the standard "click this box to agree to our T&Cs." Take it or leave it. Fairly standard these days, and in principle I don't have a problem with it. Where I DO have a problem is when the robbing f***ers jack up your premium for no good reason in the hope that you will just shrug your shoulders and pay up. And if you don't want to be fleeced, they make it as awkward as possible to cancel the renewal. Then send you a bill for £99 when you cancel the payment by other means.