Admiral Insurance: Understanding Auto-Renewal

Admiral Insurance does auto-renew, and it's important to be aware of this to avoid being caught out. While it's convenient to have continuous cover on your vehicle, auto-renewal can often result in a significant price increase. Admiral Insurance will notify you of the auto-renewal 14-21 days before it's due, and you can change your preference at any time during your policy term. However, it's worth noting that you might be charged a cancellation fee if you decide to switch providers.

Admiral auto-renewal letters overstated how much customers paid

Admiral Insurance does auto-renew its customers' policies. It automatically renews policies to offer continuous cover on customers' vehicles so that they do not get left without insurance. However, customers can change their auto-renewal preference anytime during their policy term, free of charge, by contacting Admiral online or by phone. Admiral will contact customers 14 to 21 days before their policy ends to let them know that their insurance will auto-renew and to give them their new price.

In 2017, Admiral auto-renewal letters overstated how much customers paid on last year's premiums. A customer, John Cain, was told that 'last year's premium' was £231, and was set to auto-renew before spotting a disclaimer that this figure did not include discounts. It turned out that the actual amount he had paid was £162, meaning his premium had increased by nearly 60%, much more than he initially realised.

Admiral admitted that some of its customers who were on an older IT system were being sent letters showing the original quote they were given and not the discounted premium they actually paid. The company said that customers who took out policies before February 2016 were still on the older system, which resulted in auto-renewal letters showing the premium originally offered. Admiral was in the process of moving these customers to the newer system, which records the premium as the figure actually paid by the customer.

The Financial Conduct Authority (FCA) introduced new rules on 1 April 2017, requiring insurers who want customers to renew their policies to tell them what they paid last year so that they can more easily spot price hikes. While Admiral insisted that it was complying with the FCA guidelines, the FCA declined to comment on the Admiral auto-renewal letters and would not say whether they conformed to its renewal transparency rules.

Cancelling your Admiral car insurance

Admiral Insurance will automatically renew your car insurance policy unless you tell them you don't want to. They will contact you 14 to 21 days before your policy ends to let you know that your insurance will auto-renew and to give you your new price. If you don't want to auto-renew, this is your chance to let them know that you'd like to switch instead.

To cancel your car insurance with Admiral, you'll need to call them on 0333 220 2000. They're open between 9-6 on weekdays and 10-4 on weekends. You can also cancel your policy by email or live chat. On average, you'll have to wait about 24 hours for a reply via email.

If you cancel during the cooling-off period, you'll have to pay a £25 cancellation fee. If you cancel after the cooling-off period has ended, you'll have to pay a £55 cancellation fee. If you have a black box installed, the cancellation fee is £155.

If you paid for the whole year upfront, you'll get the rest of your policy refunded. If you're still in your cooling-off period, Admiral will take away some of your refund to cover the insurance you've already had.

If you've made a claim, Admiral won't give you any refund on your car insurance. But you'll still have to pay a cancellation fee. And if you pay monthly for your car insurance, you'll need to pay for the rest of the policy when you cancel.

Auto-renewal is legal but shop around for the best deal

Auto-renewal is a common practice among insurance companies, including Admiral. While it is designed to ensure continuous cover and prevent customers from inadvertently driving without insurance, it often results in higher premiums. It is important to note that auto-renewal is legal, but customers are not obligated to accept it.

In the case of Admiral, customers have reported instances where the company attempted to auto-renew their policies at higher rates than they had initially paid. For example, one customer, Charles Willoughby, was quoted a renewal price of £940, but after searching as a new customer, he found a cheaper quote of £637.01 for the same insurance policy. Admiral agreed to match the new price after he contacted them.

To avoid paying higher premiums, it is recommended to shop around and compare quotes from different insurance providers. This can result in significant savings, as some customers have reported saving up to £222 by switching insurers. Additionally, customers can take advantage of online comparison sites, which allow them to easily compare prices and find the best deals.

It is important to carefully review your renewal notice, as it will include information about the previous year's premium and the upcoming year's price. This allows customers to identify any price increases and make informed decisions about their insurance. It is also crucial to act promptly, as most insurers send out renewal notices 21-30 days before the renewal date, giving customers ample time to switch insurers if needed.

While auto-renewal is a convenient option, it is essential to be proactive and explore alternative options to ensure you are getting the best deal on your insurance. By shopping around and comparing quotes, you can make informed choices and potentially save a significant amount of money on your insurance premiums.

How to stop your insurance auto-renewing

Yes, Admiral Insurance does auto-renew. They do this to ensure continuous cover on your vehicle so that you don't get left without insurance. However, you can stop your insurance from auto-renewing. Here's how:

• Check your policy documents to find out when your cooling-off period starts and ends. The cooling-off period is usually 14 days from when your policy starts or when you receive your policy documents. Cancelling during this period will be cheaper.
• Contact your insurer to inform them that you don't want to auto-renew. You can do this by phone, email, or live chat. Admiral Insurance's phone number is 0333 220 2000, and they are open between 9 am-6 pm on weekdays and 10 am-4 pm on weekends.
• Shop around for a better deal. Compare quotes from different insurers to see if you can get a cheaper price or better coverage.
• If you find a better deal, cancel your auto-renewal as soon as possible to avoid being charged for two separate policies.
• If you want to stay with your current insurer, negotiate a better price. Explain that you're a loyal customer and ask if they can offer a discount.
• If your policy has already auto-renewed and you want to switch to a different provider, you can still cancel without a financial penalty during the 14-day cooling-off period. After this period, you may be charged a cancellation fee.
• Be aware that if you paid for the whole year upfront and then cancel, you will get a refund for the remaining policy period. However, if you cancel during the cooling-off period, the insurer will deduct a fee from your refund to cover the insurance you've already used.
• If you pay monthly, you will need to pay for the rest of the policy when you cancel, and then set up a new payment plan with your new insurer.

Cancelling after you make a claim

If you have made a claim, you will need to pay your full premium for the year. You can find more details in your Policy Book.

Like most car insurance companies, Admiral won't give you any refund on your car insurance if you've made a claim. But you'll still have to pay a cancellation fee. If you paid for the whole year upfront, you'll get the rest of your policy refunded.

If you pay monthly for your car insurance, you'll need to pay up for the rest of the policy when you cancel. This also applies to a lot of Admiral's car insurance add-ons, like breakdown cover, hire vehicle cover and motor legal protection. This is the same with most insurance companies.

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