I know this thread is old but I thought I'd respond anyway as I take exception to what "keep it simple" was saying.

Tacit renewal has been around for years! When taking out your first policy with an insurance comapany you will be informed (by the advisor if it is over the phone or on the internet) that you agree for you insurance policy to automatically renew next year (if this is a broker they will probably also state this will be with the cheapest quote they can find).

You will be sent a renewal invite (by Budget 28 days) in advance of your policy expiring, which will state the next steps you need to take, if you've not opted out of tacit renewal this WILL TELL YOU that YOU must ring them before the renewal date to say you don't want to take up the insurance. Its not that hard!!! You do not have to send written notice of cancellation just ring them in between receiving you renewal offer and the renewal date - under FSA rules this is a minimum of 28 days.

You may complain about this practice but as long as you read your mail and the terms and conditions of what you originally signed up for you will have no problems.

A lot of people actually rely on this process to ensure that they are never uninsured.

Also there is no premium rate phone number for ringing budget - they will also call you back immeditaely if you request it while on the phone.