Hi there. Insurance policies that automatically renew are common. Automatic renewals are designed to ensure that the insured party does not find themselves without insurance. However, a renewal may occur without the insured party realising and without notice from the insurer.

The law does not require an insurer to notify an insured party that their insurance policy is about to expire or that it will be automatically renewed. Some insurers will notify you ahead of the renewal date, but other insurers may only provide information about the automatic renewal process in the product disclosure statement (PDS) that you received when you purchased the original insurance coverage.

Whether your insurance policy automatically renews will depend on the terms of the original insurance policy you purchased. You can ask your insurer for a copy of these terms, which are usually contained in the PDS. If the “fine print” says that the policy will automatically renew, then the insurer can lawfully renew the policy without first giving you notice.

If the original insurance policy does not say anything about an automatic renewal, then the insurer is not allowed to renew the policy without your consent. This is because you have not agreed to a period of insurance that extends beyond the original coverage period.

If your policy has already been automatically renewed, you should contact your insurer to ask if they have a cooling off period. Each insurer will have a different approach to cooling off periods under automatically renewed policies. Another option is to ask your insurer to cancel your renewed policy. You may be entitled to a pro rata refund, depending on the practice of your insurer.