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Correction after some Googling and the previous comments from legionreturns - no, it's not a legal requirement. They all seem to do it though, and I find it intensely annoying, too.
I've called to cancel the automatic renewal on numerous occasions, and been offered a cheaper price at the time. But being a bloody-minded bastard, I always have tell them they should have got it right first time instead of trying to shaft me with an inflated price, and so they can shove it up their arse.
Interestingly, I have had renewals come in, then had cheaper prices using the same details from the same company with a comparison site. When I've called to query that, they can neither explain it, nor match the online price!
Had this experience many times too. I was with eCar for a good few years until the hiked the price of my policy one year. When I phoned to query it they told me there was nothing they could do to lower the premium. I went online to their website and got a quote a good £100 less than my renewal premium so sent them a foul email and told them where to shove their policy.
I actually think they did it by design, though. After being a customer for about four years I guess some computer code was triggered somewhere that suggested I was statistically imminently likely to have an accident and make a claim so it would be a good idea to 'encourage' me to go elsewhere.
There is no 'H' in Aych, you know that don't you? ~ Wife
Turns out there is an H in Haych! ~ Sporky
Bit of trading feedback here.
Like a gormless twat, I suffered the same with house insurance. Direct Line kept sending the renewals through, and I kept on paying them, believing the adverts and that I was getting a good deal. When it got up to over £700 for the year, I questioned it, and got it down below £400. Utter cunts.
Since this revelation, I always shop around every time any insurance comes up for renewal.