Saga Insurance – Poor Treatment

Pennine_Lady

Hello everyone,

I've just joined today and this is my first post!

I just want to share and let people know about the treatment I’ve just received from Saga Insurance.

I’m an 82 year old lady – I don’t drive and I’ve never held a driving licence.

The Car insurance was always in my Husband’s name but he sadly passed away 20 months ago.

The ownership on the car naturally passed over to me and, at the time, Saga kindly amended the policy to help keep me mobile for hospital/doctor visits, shopping and the odd day out! Excellent stuff... so far so good!

As I can't drive, I nominated my son to be the driver – He’s in his 50's and has no accidents, claims or convictions.

My son doesn’t want or need a car of his own. Anyway, taking all factors into consideration Saga transferred the policy into my name, excluding me from driving (obviously) and they named & rated the policy on my son.

Although they didn’t endorse the policy, they sent me a letter to say that he could only use the car in connection with my business within an annual 2,000 mileage. Fantastic… suited my situation perfectly.

Nine months down the line, Saga then automatically renewed my policy accordingly.

That was last year... My policy is due for renewal again next week and yesterday I received a ‘Recorded Delivery’ letter out of the blue. It was actually dated 13 June but I don’t know why it’s taken 13 days to get to me.

Anyway, this very poor and unprofessional letter says:

We regret that the information you have supplied means that we are unable to continue with your cover after the renewal date, due to you no longer being the main user of the vehicle.

In view of that we must advise that in accordance with the General Condition 5 of your policy document all cover will cease from the renewal date.

To receive a formal recorded delivery letter in this manner is most upsetting and gives me less than a week sort my continued mobility.

The thing that confuses me is what is exactly is the information I’ve supposedly supplied because I’ve not been in touch in over 20 months. Saga also says that I am “No Longer” the main user of the vehicle but I never have been the main user! Saga organised the policy in this way after my husband passed away.

Saga quotes ‘General Condition 5’ of my policy but as far as I can see the only relevant wording of that Condition says:

• your insurance details change such that they no longer meet our acceptance criteria

If that’s the case, why was I offered renewal last year?

Can anybody on here with Insurance knowledge explain to me, from an underwriting point of view, why this is such a bad risk? So bad that they are formally cancelling from renewal?

We’ve been with Saga for many years with no accidents or claims with Full No Claims Bonus! On face value they’re taking away my mobility and throwing away just short of £400 of premium which carries very little risk. The total mileage last year was less than 1500 miles as I only get taken to the local shops, hospital etc.

I can’t seem to get any insurance elsewhere now because when I say I’ve had insurance ‘cancelled or refused’ they run a mile.

Saga’s attitude has forced me to sell the car to my son… he rang Saga for a quote and they wanted almost double the premium. I’m guessing the real reason behind their actions is to generate more premium for themselves even though there will be absolutely no change in risk.

So much for treating customers fairly…

Finally, I’ve just been reading Saga’s group profile where it says:

The Company has been built on the highest standards of customer care, value for money and talking directly to its customers. The Saga brand embodies those core values today and is one of the most trusted brands among people aged over 50 in the UK

It’s a shame Saga’s underwriters don’t exercise this philosophy!

That’s it, I’m so sorry for the rant… It’s just helped me to write it all down and share.

Hope my Son gets everything sorted soon!

nobbysn*ts

I would say you haven't had insurance refused or cancelled. As they have said, they have declined too quote for renewal, as 'your insurance details change such that they no longer meet our acceptance criteria'. So it's not you personally that has been refused, it's the general group they choose to offer insurance to that you don't fit in. They wouldn't insure my daughter on my car. She's 21, and not an age group they insure. She wouldn't dream of declaring she had insurance refused. Having said that, they've probably done you a favour, as they're very expensive. You will be better off getting insurance in your son's name, as policyholder and driver, with you as owner and keeper, or sell him the car for £1.

InsideInsurance

So they have simply changed their underwriting criteria to no longer want policyholders that arent (the main) drivers. Unfortunately insurers do this periodically as perceptions change or they see their books developing in certain ways.

Why is it a "bad risk"? Because the NCD is connected to the policyholder and not the drivers on the policy. So you, who wont ever be driving the car, receive a 80% discount for max NCD despite potentially only having terrible drivers on the policy as the person that earned the NCD is not covered by the policy.

By the sounds of it its a generic letter they have sent that in this case isnt fully relevant in its wording but still sufficient for you to understand their meaning.

They have declined to quote on a renewal and not cancelled a policy. You shouldnt need to declare this to other insurers but you may want to just to be 1,000% sure.

Did you discuss with them the possibility of simply insuring it in your sons name and you just noted as the owner/keeper of the vehicle?

Pennine_Lady

Thanks nobbysn*ts... you've helped me to feel a little less worried.

I thought because Saga was cancelling my policy by enforcing policy Condition 5 I technically have had my motor policy cancelled/refused.

Condition 5 says:

We, or Saga on our behalf, may cancel this policy by giving you seven days’ notice by recorded delivery letter to your last known address.

Like I said, in my situation, nothing has changed so it upsets me that they are treating me like this.

Thanks for your input and looking at it from the way you described makes me realise that I really haven't had insurance refused or cancelled.

nobbysn*ts

I was going to say recorded delivery is a bit over the top, but saying as the policy auto renews, if they hadn't made certain they covered their backsides by telling you it wouldn't be renewing, you could claim off them if there had been an accident, as you could reasonably assume they had insured you, and the documents had gone astray.

Pennine_Lady

Thanks "InsideInsurance" - Why can't Saga be as helpful and explain things clearly like you do? I understand a little better now.

We did ask for a quote in my sons name but they want almost double the premium... it's only a very small/old motor (it's all I need) and worth about £300.

Funny thing is, they said that if mileage went over 2000 the AD Excess would go up to £1000 - just goes to show that they are not thinking when they underwrite. They can never be an Accidental Damage, Fire Or Theft Claim for this vehicle. They forced comprehensive cover on me even though there can only ever be a third party claim.

nobbysn*ts

Try other companies, SAGA have proved very expensive for me after the first year. Do you need business cover for yourself?

nobbysn*ts

If you don't need business, I'd get a quote for your son, SDP, 3000 miles, fully comp, from comparethemarket, or try a few brokers and see if you can manage to get an introductory NCD as he has ben main driver on your policy. As you've realised, the excess is meaningless. I had cheap quotes with a low excess, other times I had a better quote with a £1000 excess, rather than £750, on a £500 car?

Pennine_Lady

nobbysn*ts wrote: »

Try other companies, SAGA have proved very expensive for me after the first year. Do you need business cover for yourself?

I'm retired over 20 years so no business use... my Son is looking at the comparison websites now as I've had no choice but to sell the car to him - Thanks again for your help

nobbysn*ts

He may be better speaking to a few companies directly, or brokers, as they may give him a discount for driving your car, on your policy, rather than starting with 0 NCD.