Question About Automatic Renewal Validity

[knowledge]

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Hey guys,

I didn't renew my policy and now apparently, I owe 400 bucks because they decided to go ahead and renew it for me (only to cancel it now).

They called my home phone numerous times and were told that I wasn't in the country (even before the policy was automatically renewed). They were even given an e-mail address to contact me...but they never did. They were even told that it was the only way to contact me. They didn't even bother calling my cell phone, either.

I would gladly pay for it if I used it, but I haven't ridden my bike from March until now (what they're charging me for).

Is this even allowed? Would I have a case if I took it to ombudsman? How could I be renewed for something without signing or even paying anything? Let's say I get in an accident and haven't done either of that...would I actually be covered? Because according to them, the coverage is valid...

 

[nfq]

With regards to insurance, every policy I've had, has been opt-out. Meaning, once you're insured, it is up to YOU to inform the insurance broker (usually in writing) that you wish to stop insurance.

If they auto renewed you, without you expressly telling them NOT to, you're pretty much on the hook for the $400.

Someone can correct me if I'm wrong...

 

[SLaP]

Just imagine you had been riding and got into an accident. Two days before your insurance had expired. You had forgotten to renew your insurance, and for some reason they couldn't reach your to remind you (you changed your #, etc). Now you are on the hook for thousands in medical expenses.
Which scenario is better?

 

[Major]

You are correct. This is in the Insurance Act legislation to protect the public. The insurer HAS to automatically renew the policy unless they have cause to refuse to renew (and they have to advise you of the fact). The renewal must be provided 30 days in advance if on monthly payment or 15 days in advance if other payment (usually in full).

You are required to notify them in writing to cancel. If you don't and haven't paid, then you can be cancelled for non-payment which will impact your insurance record (usually for 3 years).

And, yes. you were covered for the period in question. Previously, companies sent out renewal notices that insureds had to sign to renew. But of course the vast majority of lemmings didn't and then claims were being denied for no insurance valid. So the government made it reverse onus to 'protect the majority' of the public (lemmings).

You really should have taken care of your legal obligations before leaving the country (banking, insurance, etc).

Moral: You can't protect from all the people from themselves.

With regards to insurance, every policy I've had, has been opt-out. Meaning, once you're insured, it is up to YOU to inform the insurance broker (usually in writing) that you wish to stop insurance.

If they auto renewed you, without you expressly telling them NOT to, you're pretty much on the hook for the $400.

Someone can correct me if I'm wrong...

 

[nobbie48]

You could get the charge cancelled if you can prove that the insurance company was never at risk of covering your bike. You may have been out of the country but the bike wasn't and someone else could have ridden it.

A valid reason would be showing that you had coverage for the period from another insurer.

 

[unL33T]

I've forgotten to suspend coverage on my car before and just called them and told them I forgot but haven't driven the car since the suspension of coverage was taken off (ie insurance was put back on it and I was charged for it) and they just made the suspension retroactive and gave me a refund.

 

[knowledge]

Thanks for clearing that up, guys. I'll try asking them to do what you did unL33t. Otherwise, it looks like I should just chalk it up to experience and know better next time.

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