Saga car insurance rip off?

john_yonge

I recently cancelled my car insurance with Saga. I had a couple of months left to run on it and was told to expect a refund for those two months as I had switched to another insurance company.

Today, I received an outstanding balance DEMAND from Saga stating that I owe THEM £64.69.
I called them and asked why I owed money and was told that this was the admin fee for cancelling my insurance early.

I said that if I had left my insurance to run its term (i.e. without cancelling), I would have been better off. No, according to the girl I spoke to. She said that it is illegal to have two insurance policies running on the same car.

WHAAAAT!!

How can it be illegal to have two policies running on the same car? What is this law? Is Saga correct and can they claim the admin fee of £64.69??

Aylesbury_Duck

I don't think it's illegal but I suspect you might be in breach of both insurers' terms and conditions if you were double-insured?

Yes they can claim the fee if that's what your terms and conditions say. What did you agree to when you took out the policy?

George_Michael

Dual insurance isn't illegal but it will cause problems in the event of an at fault claim as both insurers will be liable and each would have to pay a proportion of any claim.


There is also the no claims problem as NCD can normally only be used on one policy at a time.

foxy-stoat

To cancel your policy please call our Customer Services team on 0800 056 9169. You will be entitled to a pro rata refund providing you have made no claims within the policy year. Please note that there will be an administration fee of up to £50 if you cancel your policy mid-term.

From the Saga web site.....saved you £14.69 - your welcome.

Next time read the policy and terms and conditions.

forgotmyname

Dont forget leaving the SAGA policy running you will have had zero no claims for the other company. So your insurance may have cost a lot more with them.

Why did you change insurers with just a couple of months left?

AdrianC

Had you paid your premium in full, or were you paying monthly?

john_yonge

Thanks for your helpful reply!