Automatic Insurance Renewal

a little girl with a little curl

There was a little girl,
Who had a little curl,
Right in the middle of her forehead.
When she was good,
She was very good indeed,
But when she was bad she was horrid.

So what’s the connection between that poem by Henry Wadsworth Longfellow and automatic insurance renewal.

As with so many things in life, it’s a question of different strokes for different folks.

If you are someone who tends to forget, then it may be ideal that your automobile insurance policy will automatically renew even if you do not contact your agent. For you, automatic renewal is a real benefit.  You may not mention it to anyone else, but the system works well for you.

Another person may be very upset if through an oversight their policy renews and they had intended to cancel and sign up with another insurer.  The problem is that automatic renewal contracts are enforceable under the law.  In other words, this automatic renewal process has some real teeth, and you could end up being bitten.

If you do a search for automatic insurance renewal, you will find a series of articles pointing out the pitfalls of this process.  As usual bad news travels faster than good news.  However overall it seems clear that for a certain proportion of the population, they will always wish to opt out of any automatic renewal process.

This puts an obligation on providers of services to ensure that most people will be happy with the process. That includes making it easy when someone is allowed to receive a refund for a cancellation of an arrangement that has automatically renewed.  A good example of the necessary and clear detail that is required can be seen in the Refund process.  One further step that is sometimes necessary is to cancel a PayPal arrangement you may have to automatically pay the fees on the renewal date.

Image credit: little girl with little curl image courtesy of MorgueFile

Enhanced by Zemanta