ASIC steps in to protect motorists from surprise insurance renewal charges

#hashtags: #TAGS #Car Insurance #ASIC #November 2015 #Karen Collier #News Corp Australia #Australia

TAGS Car Insurance ASIC steps in to protect motorists from surprise insurance renewal charges 20 November 2015 by Karen Collier · News Corp Australia network ASIC has stepped in after consumers have had bank accounts overdrawn because of unexpected automatic insurance renewal. Car insurers automatically renewing annual premiums will be clearer about their policies after customer complaints about surprise charges.Some caught-out consumers have had bank accounts overdrawn because of unexpected direct debits, or have already paid another company for cover before being charged.Insurers have agreed to update telephone sales scripts and place clearer, more prominent messages on websites after an Australian Securities and Investments Commission review revealed most consumers were only alerted in the product disclosure statement and renewal notice.These disclosure improvements will help reduce the risk of consumers being caught by surpriseAAI Limited (Suncorp Group), Auto & General Services Pty Limited, CGU Insurance Limited (Insurance Australia Group Limited), The Hollard Insurance Company, Progressive Direct Insurance Company and Youi perform automatic annual car insurance renewals."Automatic renewal of insurance may be convenient for some consumers but it is important that this is an informed choice," ASIC deputy chair Peter Kell said. "These disclosure improvements will help reduce the risk of consumers being caught by surprise."Have you ever been caught out by automatic insurance renewal? Tell us about your experience in the comments below. Related articles It pays to check your insurance options14 September 2015 by Sophie Elsworth South Australian CTP insurance to be overhauled8 May 2015 by Sheradyn Holderhead How to save on car rental insurance | report14 January 2015 by Matthew Hatton Honey, I crashed the Barina20 November 2014 by Joshua Dowling Car insurance | the basics18 September 2014 by Matthew Hatton What to read next Comments Related articles It pays to check your insurance options14 September 2015 by Sophie Elsworth South Australian CTP insurance to be overhauled8 May 2015 by Sheradyn Holderhead How to save on car rental insurance | report14 January 2015 by Matthew Hatton Honey, I crashed the Barina20 November 2014 by Joshua Dowling Car insurance | the basics18 September 2014 by Matthew Hatton Related pages Car Insurance Related cars for sale Search all cars for sale Get the latest news, reviews and advice every week '); }