Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Uzi
    • By Uzi 14th Oct 16, 1:15 PM
    • 21Posts
    • 0Thanks
    Uzi
    SAGA Cancellation Fee 50!!
    • #1
    • 14th Oct 16, 1:15 PM
    SAGA Cancellation Fee 50!! 14th Oct 16 at 1:15 PM
    Recently had to cancel a motor insurance policy with SAGA. Was hit with an 50 cancellation fee. Thought this was extortionate and thought I would let others know before they go with them. Maybe this is a normal fee but I doubt it.
Page 1
    • paddyandstumpy
    • By paddyandstumpy 14th Oct 16, 2:04 PM
    • 335 Posts
    • 93 Thanks
    paddyandstumpy
    • #2
    • 14th Oct 16, 2:04 PM
    • #2
    • 14th Oct 16, 2:04 PM
    If you've been with the aforementioned Broker for a few years, the extortionate rates shouldn't come as a surprise. I've got a particular bugbear with this Broker, I've seen some rates which would make toes curl.
    And these are the rates which the customer pays, trusting the brand. The insurer gets a fraction of what the customer pays, I've heard about cases which are 4 figures expensive, and the insurer receives 200... Saga keep the rest but don't hold 'the risk'.
    And they recently defended their position in the Telegraph as "we don't take commission". They just call it something else.

    Rant aside, 50 is not unusual for a Broker.
    Last edited by paddyandstumpy; 14-10-2016 at 2:35 PM.
    • Aretnap
    • By Aretnap 14th Oct 16, 2:28 PM
    • 2,429 Posts
    • 1,901 Thanks
    Aretnap
    • #3
    • 14th Oct 16, 2:28 PM
    • #3
    • 14th Oct 16, 2:28 PM
    50 is not unusual; the Financial Ombudsman has upheld similar fees as reasonable (eg see the case study under "the cancellation fee is unfair", here.
    • dunstonh
    • By dunstonh 14th Oct 16, 3:10 PM
    • 85,142 Posts
    • 50,153 Thanks
    dunstonh
    • #4
    • 14th Oct 16, 3:10 PM
    • #4
    • 14th Oct 16, 3:10 PM
    Thought this was extortionate
    Most around the 25 mark but 50 is not uncommon. Its not extortionate really.

    Its not as if you buy SAGA insurance because it is competitively priced. Although its not a quality option either.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • teddysmum
    • By teddysmum 14th Oct 16, 4:59 PM
    • 5,849 Posts
    • 3,447 Thanks
    teddysmum
    • #5
    • 14th Oct 16, 4:59 PM
    • #5
    • 14th Oct 16, 4:59 PM

    Its not as if you buy SAGA insurance because it is competitively priced. Although its not a quality option either.
    Originally posted by dunstonh


    It is sometimes the cheapest. Certainly for my old Punto and it was for my sister's M5, except for the last year she owned the car, when she went elsewhere.
    • teddysmum
    • By teddysmum 14th Oct 16, 5:02 PM
    • 5,849 Posts
    • 3,447 Thanks
    teddysmum
    • #6
    • 14th Oct 16, 5:02 PM
    • #6
    • 14th Oct 16, 5:02 PM
    If you've been with the aforementioned Broker for a few years, the extortionate rates shouldn't come as a surprise. I've got a particular bugbear with this Broker, I've seen some rates which would make toes curl.
    And these are the rates which the customer pays, trusting the brand. The insurer gets a fraction of what the customer pays, I've heard about cases which are 4 figures expensive, and the insurer receives 200... Saga keep the rest but don't hold 'the risk'.
    And they recently defended their position in the Telegraph as "we don't take commission". They just call it something else.

    Rant aside, 50 is not unusual for a Broker.
    Originally posted by paddyandstumpy

    Saga are brokers ? That's a surprise as it doesn't mention that on their website.
    • paddyandstumpy
    • By paddyandstumpy 14th Oct 16, 5:29 PM
    • 335 Posts
    • 93 Thanks
    paddyandstumpy
    • #7
    • 14th Oct 16, 5:29 PM
    • #7
    • 14th Oct 16, 5:29 PM
    They are most definitely brokers, they sell one product (with different cover levels) and have a panel of insurers who underwrite it.
    I can confirm this as I work for one of them, and see these premiums day in, day out.

    Just to clarify a common misconception here, the panel of insurers will compete to be the cheapest price, Saga willl then add their commission on (although they don't call it commission), this is the price the customer then pays.
    The insurer has no say or control over how much Saga adds on. But I've seen cases where the customer has paid over 1300 and we've only taken 200 of that. Saga keep the rest (less the I.P.T of course).
    It's absolutely diabolical, I make sure no one I know is insured with them, and I'd encourage anyone reading this to steer clear.
    They market as the trusted brand for the 50+, in reality the older you get, the more they fleece you.
    • forgotmyname
    • By forgotmyname 14th Oct 16, 5:47 PM
    • 23,336 Posts
    • 9,198 Thanks
    forgotmyname
    • #8
    • 14th Oct 16, 5:47 PM
    • #8
    • 14th Oct 16, 5:47 PM
    SAGA also block you from getting quotes if your insured with them already, as soon as it detects your reg or postcode it will say see your renewal.

    Except the renewal is usually extortionate.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • Pip Thatch
    • By Pip Thatch 14th Oct 16, 6:27 PM
    • 11 Posts
    • 3 Thanks
    Pip Thatch
    • #9
    • 14th Oct 16, 6:27 PM
    • #9
    • 14th Oct 16, 6:27 PM
    My Mum has Car Insurance with Saga, I am listed as 2nd driver.
    We are in process of changing vehicle, so I rang them to notify.
    They wanted another 115 quid, I explained the vehicle was 2 years old, smaller cc than existing car how was it that dear ???
    The reply "it's a newer car"
    Fair enough, but we have downsized in Car.
    We renewed in March, just wondering if it's worth cancelling and losing 50
    or stick it out and pay the extra.
    Policy is in Mum's name but she hardly drives now.
    Any suggestions please.
    Thanks.
    • dunstonh
    • By dunstonh 14th Oct 16, 6:55 PM
    • 85,142 Posts
    • 50,153 Thanks
    dunstonh
    They market as the trusted brand for the 50+, in reality the older you get, the more they fleece you.
    SAGA were slated in the annuity market as well. Their terms were always worse than those obtained by IFAs. Ironically, Ros Altman was in charge of things back then and defended the model until she decided to go all consumer protection minded.

    Any suggestions please.
    not saga at renewal.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • teddysmum
    • By teddysmum 14th Oct 16, 11:21 PM
    • 5,849 Posts
    • 3,447 Thanks
    teddysmum
    We only have one car with them; my old Punto, but the cover is only about 130 per year (including a year's free vehicle breakdown), but about two years ago, they refused to cover our Punto sporting; no reason given.
    I know their pet insurance is dear as in a newspaper article people were complaining about the huge jump in costs once the dog was about 7 years old.
    Last edited by teddysmum; 15-10-2016 at 2:48 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,389Posts Today

6,830Users online

Martin's Twitter