Pay attention to renewal notices

THESE days, insurance companies just assume you wish to carry on with a policy.

A company will send renewal letters and if you don’t reply then it will carry on taking money.

Mrs Millicent Matheson, of Wick, had a house insurance policy with Admiral. She let her policy run to the end of its life and took a new policy with another company – as is her right in a competitive market.

But Admiral, when it didn’t hear from Millicent, sent letters saying it would renew the policy.

An Admiral spokesman said: “We sent a renewal pack.

“We would have accepted written confirmation she wouldn’t hold Admiral liable for any claims.”

This went on for a few months until, eventually, Admiral reckoned that it had been providing a service and that Millicent owed a total of £79.74.

Raw Deal managed to get Admiral to waive this. Millicent contacted us to say: “Many thanks for your intervention. Insurance company are taking no further action, the matter is now closed.”

So take care when you let a policy lapse. Make sure you inform your old insurer you wish to terminate the contract.