You're Getting Benefits, But It's Deducting Premiums? The Renewal Maze Behind "Bargain-Priced" Insurance

Special Topic: 2026 315 Financial Complaint Exposure Platform

Source: Zhongke Finance

“Free Insurance Gifts” Become a Common Benefit, Be Careful of Automatic Renewal Terms Behind “Free”

“Free claim” “First month starting at 0.01 yuan”—these enticing promotional phrases often make people click. However, behind these “first month free” or “bargain prices” slogans, there is often a long-term automatic renewal agreement lasting a year or more. Complaints about “being inexplicably charged insurance fees for several months” or “being bought insurance without reason” flood social media platforms.

The author’s investigation found that in recent years, inducement to buy insurance and hidden charges have become major sources of complaints in insurance consumption. Specifically, complaints originate from attracting clicks with “0 yuan/low price for the first month,” then automatically switching to high-priced packages the next month; consumers are charged repeatedly without their knowledge. When consumers file complaints to defend their rights, they find it extremely difficult to prove they were “unaware,” and the process of refunding charges is long and complicated.

Insurance fees deducted without awareness

“After checking, I found it wasn’t just one, but three charges of 363 yuan each,” Ms. Li said. She initially discovered her father’s bank card was mysteriously charged 363 yuan. Upon inquiry, she found the recipient was Taikang Online Property & Casualty Insurance Co., Ltd. (hereinafter “Taikang Online”), which deducted three charges totaling 1,089 yuan via the JD platform. Ms. Li emphasized that her father had never purchased or authorized insurance, nor signed any agreement, and the deduction process did not even involve password input or other confirmation steps.

Ms. Li contacted customer service of JD Finance and Taikang Online to understand the situation. Taikang Online’s customer service asked if she clicked on an advertisement link. Ms. Li said that even if she clicked the ad, it would require entering a payment password, which her father did not do. This clearly is not a valid reason for direct deduction. After several rounds of communication, Taikang Online’s customer service finally agreed to a full refund. However, they did not explain what kind of insurance product was purchased through these charges.

Besides the 1,089 yuan refund, she also received a small charge of 0.6 yuan. Based on related complaints on social media, this 0.6 yuan was likely from clicking a low-priced insurance product link designed to attract traffic.

Similar complaints are common on the Black Cat Complaint platform [Download Black Cat Complaint App]. The author found that most consumers saw advertisements or online links promoting “free insurance gifts,” “first month 0 yuan,” or “first month 1 yuan” at very low prices. Consumers may unknowingly authorize these, and subsequent charges lack prominent prompts. Only after checking their billing details do they realize the insurance company regularly deducts dozens or hundreds of yuan from their accounts each month.

Screenshot from Black Cat Complaint platform

In fact, in internet insurance marketing, it is not uncommon to attract consumers with “free” or “first month 0 yuan” low-price promotions. Key terms like “normal premium from the second month” and “automatic renewal” are often placed in inconspicuous locations or simplified in the process, making consumers unaware or insufficiently informed. As a result, insurance companies can repeatedly and periodically deduct premiums via “withholding agreements” without explicit, step-by-step confirmation from consumers.

As early as 2023, regulatory authorities issued the “Notice on Further Improving Short-term Health Insurance Business,” which clearly states that product pricing should be based on scientific and reasonable data, and that premium rates for each period should be determined strictly according to the data foundation. Arbitrary adjustments of actuarial assumptions or the appearance of “0 premium” situations that violate actuarial principles are strictly prohibited.

“JD Health·Million Medical Insurance, maximum coverage of 6 million, free 30-day trial,” the author clicked this link on JD platform and found the promotional page prominently marked “Free trial for 30 days, cancel anytime without charge.” When redirected to the “Agree to the agreement and purchase” page, a gray-font note explains the billing details, such as “After the 30-day free protection period ends, if you do not actively cancel, automatic payment protection will be initiated. From the day you agree to the agreement and purchase, the first premium of 23.2 yuan will be deducted on the 30th day, then monthly payments will be made for 12 consecutive months.”

Screenshot from JD platform

According to Article 10 of the “Implementation Regulations of the Consumer Rights Protection Law,” operators providing services through automatic extension or automatic renewal must clearly inform consumers of these arrangements before the service begins and before each renewal date. However, “free insurance gifts” activities often hide automatic renewal clauses in small fonts, default checkboxes, or lengthy agreements, failing to fulfill the obligation of clear notification, thus infringing on consumers’ legitimate rights.

From “free” to “paid”

Entering JD’s official flagship store for JD Health, some insurance products are priced from 0.01 yuan, including million medical insurance, pet insurance, and more. The author found that purchasing such free insurance gifts does not require entering a payment password, nor does it involve any payment at the time of purchase. If choosing monthly payments (split into 12 installments), consumers must agree to the “Premium Installment Service Agreement.” According to the agreement, after granting authorization for installment payments, JD Insurance Brokerage (Tianjin) Co., Ltd. (hereinafter “JD Insurance Brokerage”) will initiate deduction instructions to online banking platform (Beijing) Technology Co., Ltd. (hereinafter “Online Banking”). Online Banking will deduct the current premium from the consumer’s JD account, and JD Insurance Brokerage will pay the full amount to the insurance company. Therefore, consumers who receive these “free gifts” do not need to enter a payment password and will not incur any charges initially. However, if consumers do not manually cancel after the 30-day free period, they will be billed monthly.

The author’s review found that this “seamless” collection mechanism behind the “feelingless” receipt involves a strict set of procedures to be compliant. In theory, insurance institutions should do the following throughout the sales process: First, on each key page where consumers receive the product, clearly inform them of automatic deduction arrangements and specific amounts through pop-ups or highlights. Second, set up an independent confirmation step where consumers actively authorize automatic deduction—default checkboxes are prohibited. Third, before deduction (e.g., 5 days in advance), remind consumers again via SMS, app notifications, etc., and provide a clear, convenient way to cancel automatic renewal during the service period. In practice, these conditions are often difficult to meet, which can easily lead to consumer disputes.