Warning - Saga sharp practice

John_Stone

Warning - Saga sharp practice

I recently let my Saga home insurance lapse as the premium had risen considerably and changed to another company at just over one third the cost.

I was surprised to receive a letter from Saga demanding £634.43 as the 'balance owing for cancellation of this policy".

I phoned Saga and the person I spoke to said - 'oh you cancelled your policy'.
'No I didn't renew it'
'That's right - its just a computer error'
'It seems like sharp practice to me - someone might be confused by such a letter and pay this' (after all Saga markets itself to the elderly)
Silence at the other end and then - 'yes well I will tell the accounts department'

So be careful with Saga they may try and demand money from you or a relative even if they have no call to.

I also discovered that the insurance companies and brokers targeting the elderly were on my searches all more expensive than the competition.

Thomas_Crown

With regards to Saga motor insurance policies, their customer sevices people do not recognise the term ''lapse'' ie. allowing a policy to expire at the renewal date. They always refer to the policy being cancelled. I have just changed from Saga to LV= and I found Saga customer services extremely hard work to deal with. Also, their Saga ''Price Guarantee'' isn't worth the paper it's written on.

roddydogs

£643.......Blimy how much is you house insurance?

ian_young_2

My SAGA house insurance expired on 01 August and due to the high price of the renewal quote I did not renew and purchased a much cheaper policy elsewhere. On returning from holidays I too had a demand for £476 outstanding balance due to cancellation of the policy. When I rang SAGA I was told it was an error and all charges were cleared. I raised the point of targetting elderly people in the hope that some confused people may pay and was told this is not the case but that SAGA had experienced several errors with their system. This does not look good for SAGA does it!

pjaj

My wife sold her car a few weeks ago, 6 months into the policy period. She had been paying by monthly instalments since this is fee and interest free. We returned the policy document to Saga for cancellation as requested.

We have just received a demand for £53.71. When I phoned customer services they said that there was a cancellation fee of £50, but he could not explain the other £3.71 (possibly due to cancelling the direct debit mandate at the same time). When I expressed incredulity at this fee he claimed that it was in the Ts & Cs. I have since re-read the policy booklet, and whilst it indeed does say that there is an administration fee for cancellation, it carefully fails to say how much.

The agent said he would go and query the charge and get back to me. Before I pay up, I will demand a full justification for such a high fee - where does the money go?

This is another excessive fee that Martin could look into.

Quentin

Although it sounds a lot, it isn't excessive for insurer cancellation fees.

So be prepared to have to bite the bullet

dzug1

Sounds surprisingly cheap to me. A 6 month policy (which is what you effectively landed up with) always costs a lot more than half an annual one. Even with no cancellation fee, you can land up with something to pay.

dunstonh

I also discovered that the insurance companies and brokers targeting the elderly were on my searches all more expensive than the competition.

Its been like that for decades. I have never known SAGA be competitive. Their marketing gives the impression they give a good deal, often by showing a big discount figure, but their gross premium to begin with is much higher.

IIRC, Saga have automatic renewal. So, if you dont follow the instructions in the renewal letter by telling them you dont want to renew, they will continue it. You need to read your renewal letter.

cogito

dunstonh wrote: »

Its been like that for decades. I have never known SAGA be competitive. Their marketing gives the impression they give a good deal, often by showing a big discount figure, but their gross premium to begin with is much higher.

IIRC, Saga have automatic renewal. So, if you dont follow the instructions in the renewal letter by telling them you dont want to renew, they will continue it. You need to read your renewal letter.

I have which is why I insure with them. And they don't limit the amount of foreign use which some of us find rather useful.

dunstonh

cogito wrote: »

I have which is why I insure with them. And they don't limit the amount of foreign use which some of us find rather useful.

For reference, i was referring to their home insurance.

pjaj

Quentin wrote: »

Although it sounds a lot, it isn't excessive for insurer cancellation fees.

So be prepared to have to bite the bullet

dzug1 wrote: »

Sounds surprisingly cheap to me. A 6 month policy (which is what you effectively landed up with) always costs a lot more than half an annual one. Even with no cancellation fee, you can land up with something to pay.

What I failed to point out was

1. The sum demanded was virtually the balance of the year's insurance. Total premium about £129, already paid about £66, cancellation charge £53+
2. It MAY have given the actual cost of cancellation somewhere in the Ts & Cs on-line, but the booklet they sent only says that there is a charge, not how much.

In any case, it pays to complain and keep complaining. Don't accept everything they demand. I sent a letter in November explaining the above and asking them to justify, in detail, how they arrive at the charge. I don't know if this sort of charge is covered by a requirement to be reasonable and commensurate with the actual work involved, but I thought it worth a try .
After a month's wait, I have just received a phone call stating that they have reviewed my case and they are waiving the charge. RESULT!:j