Renewal arrangement fee

COYB

Just had my renewal in from SAGA. Last year the arrangement fee was £10 this year they want £20 just for pressing a few buttons. I understand car insurance policies have gone up on average 20% this year so how do SAGA justify 50% for just a renewal. the mind boggles

Quentin

Businesses can charge what they wish for their service


Search the market as advised in the MSE article and move elsewhere if it s cost effective


http://www.moneysavingexpert.com/car-insurance/?_ga=1.63075244.2077605337.1484742953

dunstonh

this year they want £20 just for pressing a few buttons.

Is that all they do? Perhaps you should tell them this so they can reduce their staff and tell the regulator that they do not need to do all the things they expect either.

paddyandstumpy

The fee is on top of the commission they charge. The premium for the insurance is mislabelled as it is usually about 50% insurance premium 50% commission.

Get out whilst you still can. The older you get the more they'll prey on you and take advantage.

dunstonh

The fee is on top of the commission they charge. The premium for the insurance is mislabelled as it is usually about 50% insurance premium 50% commission.

Not any more. That is why these fees have started to creep in.

mattk_180

£20 sounds quite reasonable to some companies our there charging up to £50 or even more. It's probably just come as a bit of a shock because it's doubled from last year.


Chances are their costs are increasing and they're not getting as much business so their incoming commission has reduced and they've therefore had to increase their admin fees to compensate.


Regardless of the reason and whether you agree or not, the only options are to either try and negotiate, suck it up and pay or move elsewhere.

ThinkingOutLoud_2

Focus on total cost of the policy.

Just as with budget vs "full service" airlines - you need to compare the total of everything - fees, commission, admin charges, card payment fees, cost to cancel mid term.

But that everything was made more clear and simple to compare - I agree!

jiMOB

I was staggered to find this (initially hidden) fee and instead of renewing I contacted SAGA as well as trying an extensive online search for alternatives. SAGA did offer me a discount but I have since found my car insurance cheaper (with Direct Line) AND their policy is better; lower excess & more benefits!


This sort of cost really annoys me and seems designed to 'trap' anyone that doesn't look elsewhere. I also have a static caravan and the 'service charge' for that insurance amounted to a 20% increase; I searched online and found a little company that gave me a significantly cheaper premium, no service fee AND a friendly (local) person on the phone: RESULT!

ThinkingOutLoud_2

Yes. All that is required is to diary in advance of your policy anniversary date and search for a better deal and then decline to renew in time - if you find a better deal.

ampersand

Have just done the annual MSE car insurance slog and, against usual outcomes, HAVE just renewed with Saga.

Have phoned 3 times in the process - 3 good people: Richard, Colin, Sue - and have shaved it, but it's still double the sub-£100 customary with previous Ford Estate[deceased]. Now a 2007 Vauxhall Meriva, which was responsible for a Yikes! hike in January, upon purchase. I had thought a newer car would mean lower premium. Not so.

My 3rd call was re jiMOB's #8. Sue says it is NOT hidden. Although there is no breakdown of the renewal figure with the renewal letter, it is detailed on the policy itself.