Overhaulin'

Can insurance companies renew car insurance without owner`s permission?

My friend has just had a letter from her old car insurance company, saying they have set up a direct debit for monthly car insurance. However, she has recently changed car insurance companies, and has not instructed the old company to set up these direct debits. Is this legal?!

Public Comments

1. She would probably have gotten a letter from her old insurance company prior to the insurance running out saying that unless she tells them to cancel the insurance it would automatically be renewed. The letter would have stated the renewal price and the monthly charges. She probably didn't let them know to cancel the policy. This is normal practice with car insurance renewal.
2. To add to the previous answer, your friend must have set up a direct debit for the old insurer. They cannot do so of their own volition. She needs to contact the old insurer immediately to correct the situation, and then to contact her bank to cancel the direct debit mandate.
3. They couldn't have set up a direct debit without her first giving the company her account information and she must have also signed some kind of a consent form. I can guarantee you that they didn't simply find all the acccount information and forge a consent form on their own without her knowledge.
4. My husbands insurance runs out on 6th March and he already pays by direct debit.He got a letter telling him price etc for renewal and unless he contacted them it would be renewed automatically without having to do anything. I called them and cancelled the policy and the bank to cancel the direct debit because we got cheaper elsewhere.