Mark seeks insurance renewal change

Mark Oaten has today written to the new Secretary of State for Business Peter Mandelson outlining his concerns with the practice of automatic insurance renewals where customers can end up paying more than they need to.

It applies to all forms of insurance but particularly motor, home and travel where insurance companies offer a quote and put the onus on the customer to contact them to cancel it.

Many people believe this system should be changed so that a customer can provide ‘positive acceptance of renewal’. This would ensure that customers do not agree to a renewal quote that could be far higher than they could obtain elsewhere simply by omission. It will also combat the numerous examples Mark has heard of people only finding out about these renewals when the money is taken from their account.

Mark is encouraging constituents to get in touch and share their views and experiences on the matter to help him raise the profile.

Mark Oaten stated:

“In the current economic climate the last thing people want to find out is that they are paying more for their insurance than they need to or that they are paying insurance for things they weren’t even aware about.

“I keep hearing from people that the first they hear about these payments is when the money leaves their account. And with everything done on emails these days you have what are effectively contracts ending up in spam folders and never being seen.

“I want to raise the profile of this issue and to help me it would be really helpful for any constituents who have had experiences with this issue to get in touch and let me know about it.