Woolworths Car Insurance Changing Cover without Explicit Consent on Renewal

lawyerz on 18/06/2023 - 02:26
Last edited 19/06/2023 - 11:14 by 1 other user

We are switching you to Comprehensive cover – tell us if you do not want this to happen.
You need to make a decision to ensure you have the right type of insurance cover for your car based on your circumstances. Please read this letter.
This year, we have made some changes to help make sure that we sell the right policies to the right customers. As part of this process, for the reasons outlined in this letter, your renewal offer this year is for Comprehensive cover. This will give you a higher level of cover, but will also increase your premium. We have not taken your personal circumstances into account.
If you want to stay on Third Party Property, Fire & Theft cover, please let us know before 18 Jul 2023.
If you are happy with this renewal offer and your details are correct, you do not need to do anything. Your Comprehensive policy will automatically renew on 18 Jul 2023 (if you are up to date with your premium payments). We are here to help, so if you have any questions, give us a call on 1300 10 1234 Monday to Friday, 8am-8pm (AEST) or Saturday and Sunday, 9am-5pm (AEST).

Got the above letter by Woolworth Car Insurance deciding to change my coverage should I not get back to them in time - raising premiums 3 times more than what I'm currently paying. Anyone else finds this absurd? Instead of them contacting me to ask me to consider increasing my coverage, they've gone ahead and put the onus on me to contact them to put a stop to a change I did not authorise from happening. In all my years on being various insurance, I've never encountered anything like this. I have never made a claim, ever, on my car insurance history nor have I ever had a claim made against me.

https://www.pictr.com/images/2023/06/18/EdRKJO.png

Anyone else finds this absurd? Anyone thinks this is some breach of some laws somewhere (to make changes without customer's explicit consent), especially considering this is a financial product? Are they relying on the % of people who don't scrutinise their bills and just let it slip through?

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Comments

  • franco cozzo on 18/06/2023 - 04:51
    +6

    here let us upgrade your policy without your consent, you can thank us later……insane. find a cheaper quote & leave immediately

  • MeesusEff on 18/06/2023 - 05:07
    +7

    Wouldn't even bother getting a quote, I would just leave

  • Sammy2000 on 18/06/2023 - 07:37
    +3

    I can't imagine anyone being happy with this and only a low percentage of people wouldn't notice.
    I feel for the call centre staff.

  • djkelly69 on 18/06/2023 - 07:57
    +4

    There is a 'famous' contract law case which basically says silence cannot equal acceptance of an offer (eg "if I don't hear from you, I will assume you have accepted my offer to sell your car to me for $xxx". I would have thought the principle extends to varying a contract as well.

    • holdenmg on 18/06/2023 - 08:26
      +2

      Felthouse v Bindley

      • oscargamer on 18/06/2023 - 09:40

        Yes but…..

        In the wiki entry about this matter, it refers to Rust vs Abbey Life Assurance, which counters that original finding.

        • freefall101 on 18/06/2023 - 10:36
          -1

          Doesn’t matter in Australia, since that second case happened in 1979, long after Australia stopped using UK case law as precedent.

    • AngoraFish on 18/06/2023 - 12:09

      The case doesn't extend to varying a contract, and your car example doesn't apply.

      You know those emails from the bank, or Facebook, or pretty much any company that you have an existing relationship with, saying that the Ts & Cs have been updated and if you don't delete your account in 60 days then it will be presumed that you have accepted? That.

      A better example would be that OP signed a contract to buy a new car annually, with the make and model and cost of the car to change every year at the discretion of the seller. The seller would have an obligation to let OP know in advance each year what new car they're going to get, and how much it would cost, and if the seller heard nothing from OP the car would be sent and OP would be liable for the cost.

      This is the same arrangement that literally every single insurance auto-renewal policy works on. Terms and prices change constantly. OP needs to opt-out of the arrangement at that point.

      Neither of the cases quoted by others above apply because in none of those cases was there an existing contract in place. Woolworths didn't send the policy to a random stranger, they sent it to an existing customer who previously agreed to precisely the arrangement that is now happening.

      • freefall101 on 18/06/2023 - 12:59

        with the make and model and cost of the car to change every year at the discretion of the seller

        If that's in the contract then fine, that can happen. I highly doubt the Woolworths insurance contract includes that they can change the agreed upon product that is being provided. Third party and comprehensive are pretty different kinds of insurance.

        This isn't changing a clause in the contract, this is accepting a new contract which usually requires more than simple notification. IANAL but Woolies Insurance is walking a fine line here.

  • elgrande on 18/06/2023 - 08:05
    +3

    They flagged your account as an Ozbargainer which triggers a move from 3rd party to comprehensive cover. Did the letter include an MS Paint diagram?

  • SBOB on 18/06/2023 - 08:38

    should I not get back to them in time -

    Don't you have to actively pay the premium. If you're somehow on some auto-renewing/saved credit card insurance renewal you're doing it wrong.

    Regardless of any renewal notice I've ever gotten for car insurance, the end decision is on me, made by actually paying the renewal bill.

    Wouldn't you be checking alternatives for current insurance rates anyway?

    • mskeggs on 18/06/2023 - 10:04
      +1

      This versus the posts on here about "I somehow forgot to renew my insurance."

      I do let them have auto-renew details, but i price comparison shop before renewal.

    • lawyerz on 18/06/2023 - 10:11

      Every insurance I've signed up with in Australia takes your credit card details and is on auto renew by default.

      I'd like to hear which insurance provider you've been with that doesn't do this.

      I do of course re check all prices each year but you can imagine lots of other people don't.

      • SBOB on 18/06/2023 - 11:02
        +2

        None of my CTP (currently Allianz)
        None of my house (currently Suncorp)
        None of my cars (currently Suncorp and Australia Post)

        Honestly don't remember any as I change pretty much every year and I never have to call to cancel.
        Car insurances would have been Woolworths, Coles, allianz, Suncorp would be most recent years I can remember.

        Nsw so maybe there's a state behaviour difference?

        • kerfuffle on 18/06/2023 - 11:03
          +2

          Same here. NRMA don't do auto-renew for products paid yearly.

        • lawyerz on 18/06/2023 - 11:11

          Hmm I'm in Vic. Maybe it's a state thing.

          Youi, budget direct, for house
          Bingle, Woolworth car insurance for car
          Health insurance too

          All default to autorenewing each year and I didn't ever see an option to opt out during sign up process.

          • pjetson on 18/06/2023 - 11:41

            @lawyerz:

            Hmm I'm in Vic. Maybe it's a state thing

            I'm also in Vic, and I have quite a few policies. None of them auto-renew.

            Are you paying by the month? Maybe that's the difference.

            • lawyerz on 18/06/2023 - 11:59

              @pjetson: I'm paying annually. What's going on.

              The onus has always on me to call them to cancel the auto renew annually. I'll dig into this more.

              • SBOB on 18/06/2023 - 12:10

                @lawyerz: Definitely

                Only time I've called to cancel insurance is due to cancelling early and requesting pro rata refund

              • pjetson on 18/06/2023 - 12:24

                @lawyerz:

                What's going on.

                You must be paying by credit card, otherwise they wouldn't have any way to automatically renew your accounts. Maybe you agreed to it when you first signed up, even if you don't recall doing so.

                • dcep on 18/06/2023 - 13:12

                  @pjetson: yeah they do that when you get a quote on the phone and paid by credit card

                  that guy on phone never mentioned about auto renewal and i won't have known until received the letter notice that i have signed up and given direct debit auth. for any future billings, call to cancel.

              • kerfuffle on 18/06/2023 - 14:00
                +1

                @lawyerz: Youi auto-renew for NSW policies, can confirm.

          • MeesusEff on 19/06/2023 - 00:00

            @lawyerz: I've hopped around every year and the only one I had to call and cancel was Youi.

            Allianz, AAMI, Budget Direct, RAC doesnt auto renew. I usually just get a new quote from the same insurer to check against the renewal and if cheapest then i just sign up and abandon the other one lol

        • AngoraFish on 18/06/2023 - 12:19

          All my Budget Direct and Woolworths policies (Vic) auto renew unless I explicitly tell them to cancel it. It's a pain to cancel them, usually involving a long conversation on the phone that I can't do online. It's a pain, but it's also cheaper, so that's how I roll.

  • holdenmg on 18/06/2023 - 08:42
    +2

    This almost looks like a Bait and Switch.

    "we have made some changes to help make sure that we sell the right policies to the right customers" sounds like marketing speak for "we have realised selling cover (other than Comprehensive) is unprofitable or not worth the hassle"

    I wonder why they don't offer the option to remain on existing cover.

    Get cover elsewhere then run away.

    • SBOB on 18/06/2023 - 08:45

      we have made some changes to help make sure that we sell the right policies to the right customers

      I'm sure they downgrade some with comprehensive to third party only right ….right :)

  • GordonD on 18/06/2023 - 09:23

    Woolworths offers insurance through Holland Insurance. I discovered this when I switched to what I thought was a different insurance company, there was some confusion about when one policy ended and the other expired, and they told me it was easy for them to sort out because both policies were actually through Holland.

    When I was with "Woolworths" I started with a 3rd party property policy, and suddenly they said they were no longer offering that policy type, and gave me the choice of comprehensive or switching to another insurer. Since this was a couple of years ago I'm surprised the OP still had a 3rd party property policy with them until now. It doesn't correspond to what they told me at the time.

    I abandoned "Woolworths" insurance because a comprehensive policy just wasn't a good deal for me. I switched to a PAYG comprehensive policy based on my mileage driven. So the nett result of them forcing me to switch to comprehensive was that because that made me look elsewhere they are now actually getting less money from me than when I was on a 3rd party property policy, and I get comprehensive coverage

    • jumpypotato53 on 18/06/2023 - 09:28

      What PAYG insurance company did you choose?

      • GordonD on 18/06/2023 - 09:32

        Australian Seniors.

        • jumpypotato53 on 18/06/2023 - 09:35
          -2

          Damm, I wish they would insure non seniors

    • lawyerz on 18/06/2023 - 10:14

      Been with them a couple of years but I always let it lapse and sign up as a new customer. They still had the 3rd party (and 3rd party with fire and theft) option this time last year. ¯_(ツ)_/¯

      Signed up with this deal https://www.ozbargain.com.au/node/709614

    • outlander on 18/06/2023 - 11:09
      +1

      Crazy isn't it. The insurance market is like the mobile phone market, where there's only a few main players and everyone else just resells the service. Found that out when I did a few comparisons (large companies ie Aami, Suncorp, Gio) and the signup was practically identical.

  • freefall101 on 18/06/2023 - 09:48
    +2

    I’d forward to the ACCC. They’d be interested in this.

    • lawyerz on 18/06/2023 - 10:21

      Done!

  • Costanza on 18/06/2023 - 10:27

    Sounds like those pricks at Vonex. If it isn't illegal it should be.

  • tsunamisurfer on 18/06/2023 - 10:58

    What is the context of this correspondence?

    Is it that the company is no longer offering whatever product the OP is on?

    • lawyerz on 18/06/2023 - 11:06

      This correspondence is just the annual renewal notice.

      They still offer 3rd party, and 3rd party, fire, and theft seen here. https://insurance.everyday.com.au/car-insurance.html

      They worked out my car is worth $11,000 and that the theft portion of this insurance covers up to $10,000 only and that's the reason they single-handledly decided to change my coverage and triple my premiums. This was something I was already aware of and made my decision accordingly.

      Whatever the reason, the onus is now on me to spend time to call them to put a stop to this, instead of the other way around.

  • bargain crazy on 18/06/2023 - 13:02

    Flick a message to 9 news or anyone else via their website. I am sure someone will want to spice this up give woolies a free publicity…

  • hasher22 on 18/06/2023 - 16:21

    I used to work for insurance sales, there will be a clause somewhere in the PDS that your insurance can change at any time but you will be given X amount of notice. This clause isn't new, you will find this clause in your phone, internet, promo codes etc….. it's a standard clause.

    This is perfectly legal and it's up to the consumer to continue or dispute it.

    Yes the change seems absurd but the ACCC, fair trading, or the ombudsman will not do anything about it and will refer you back to the Woolies to sort it out.

    I also used to work for Telco customer service and when previous phone plans were going to be automatically replaced with a newer plan that may be similar in inclusions but dearer, you can imagine the amount of complaints we got when they received the letter. While there's literally no way of us keeping the old plan, the customer either needs to change to the new plan automatically or they can leave.

    In saying that,

    I used to be with Woolies for the Mazda CX3 3 years ago, I was paying $1100 then the next year it jumped to $1700! I had no claims, or anything. I then switched to budget direct which was around $1300 from memory, now im with NRMA for $1500 since Budget D bumped it up to $1650.

    It sucks to keep jumping, but you have to do whats best for your pocket and inclusions.

    • lawyerz on 18/06/2023 - 16:49
      +1

      I concur with the probable outcome.

      Though in this case the product isn't being discontinued. It's akin to your health insurance saying alright we're gonna change you to platinum coverage because we deem right for you.

      • knobbs on 20/06/2023 - 08:31

        Yeah they say deemed right for you but then also day we haven't taken into account personal circumstances LOL

    • GordonD on 18/06/2023 - 16:59

      $1100 .. $1700 .. $1300 .. $1650 .. $1500

      $217.02

  • miwahni on 18/06/2023 - 23:21

    My insurer (RACQ) did the opposite - received my renewal last week and noticed that it no longer included optional hire car cover - which I've had forever - and the excess had increased to $1000 from $850. I rang to query and was told it was a pricing decision, to keep my premium lower. Got a quote from them with hire car reinstated and the lower excess, and it put the premium up by $150. Looks like I'll be staying with RACQ though, as I've obtained six quotes elsewhere and they've all worked out dearer for similar cover.

  • knobbs on 20/06/2023 - 08:32

    This would be even worse the other way around, currently on comprehensive, they downgrade you, go to make a claim and they say nope only third party now. Not saying what they did was good, still a terrible practice

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