Travel insurance renewal

kac123

We have travel insurance with SAGA and it is due for renewal this month. We have received the renewal policy and the terms have changed to exclude pandemic illnesses; can they do this or if it is a renewal should they keep the terms the same? On one of the Martin Lewis shows someone asked a similar question and it was mentioned they should offer the same terms

Sandtree

An insurance contract like Travel is for a specified term, normally 12 months for an annual policy. After that term insurers are free to change the terms as they see fit and reprice the policy accordingly when they offer the renewal; your similarly are under no obligation to accept their offer of renewal.

If marketing messages have said something different then you may have reasonable grounds for complaint but in the absence of such a promise at point of purchase then you are on thin ice. "Thankfully" UK consumer protection favours the consumer and so registering a complaint and escalating to the FOS ultimately is free of charge for you even if the basis of the complaint is totally groundless (and yet it costs the insurer considerably) so you may as well make a complaint as there is always a chance of it paying off.

davidmcn

Sandtree said:

so you may as well make a complaint as there is always a chance of it paying off.

What would constitute "paying off" though? Surely the insurers wouldn't be forced to provide indefinite cover on the same terms, at a price which assumed Covid wasn't covered?

rs65

Sandtree said:

registering a complaint and escalating to the FOS ultimately is free of charge for you even if the basis of the complaint is totally groundless (and yet it costs the insurer considerably) so you may as well make a complaint as there is always a chance of it paying off.

Amending terms at renewal is nowhere near worthy of a complaint never mind a referral to FOS.
Anything that costs the insurer is ultimately just passed on the policyholders.

OP, whoever said that was wrong.  They are not even obliged to offer renewal at all.

Sandtree

rs65 said:
Amending terms at renewal is nowhere near worthy of a complaint never mind a referral to FOS.

Anything that costs the insurer is ultimately just passed on the policyholders.

Only in the round though, if you complain your premiums wont go up by £500 next year to cover the cost of the FOS fee, instead everyone's premiums will go up by £1.50 to cover all the complaints received.

Also remember that insurers are "expected" to receive a certain amount of complaints no matter how good they are hence there being an annual volume before the per complaint fee kicks in which is dependent on a combination of size and how well the FOS service is promoted.

I am not promoting vexatious complaints but if you feel aggrieved you shouldn't just swallow it because of the impact of a complaint on next years premiums

rs65

Sandtree said:

Only in the round though, if you complain your premiums wont go up by £500 next year to cover the cost of the FOS fee, instead everyone's premiums will go up by £1.50 to cover all the complaints received.

Exactly, so we all suffer.  Or if they don't get the complaints they have budgeted for we will all benefit
I don't think its vexatious - just pointless
The OP is querying a comment on Martin Lewis' show.  Nothing to suggest they have an issue with the insurer to justify a complaint

kac123

rs65 said:

Sandtree said:

registering a complaint and escalating to the FOS ultimately is free of charge for you even if the basis of the complaint is totally groundless (and yet it costs the insurer considerably) so you may as well make a complaint as there is always a chance of it paying off.

Amending terms at renewal is nowhere near worthy of a complaint never mind a referral to FOS.
Anything that costs the insurer is ultimately just passed on the policyholders.

OP, whoever said that was wrong.  They are not even obliged to offer renewal at all.

I was not considering a complaint - just clarification as  I was confused