My renewal is due on 23rd August - I spoke to them yesterday 24th July.
The renewal premium (supposedly fixed for three years) was in the region of £700.
I was asked to submit card details for payment. I asked when would they debit my card? “Straightaway" they replied. I protested ssying that meant they would have my £700 for a month for which I would receive no value. The lady sympathised and left me on hold whilst she went to consult a manager. She came back confirming their take-it-or-leave-it policy. She pointed out that I would have the (very tenuous in my opinion) advantage of securing their wonderful offer which could possibly be withdrawn in the intervening period.
I am not a lawyer but sitting on somebody else's money for a month and giving no value is verging on the criminal. Their suggestion that I could have some value in guaranteeing their offer in case it was withdrawn in the intervening period is worthless - I would just cancel and go elsewhere, BUT in the meantime I would be running the risk of them going bust before my cover starts. At the least this is sharp practice of the highest order coming from an organisation that promotes itself as a specialist in giving sympathetic service to the elderly who, unfortunately, are the group most likely to be taken in by this malfeasance.
There should be some legislation to prevent this common practice - it is not the only organisation I have noticed operating a similar policy.
£700 sounds not unreasonable for three years, but if that's the annual charge you should shop around!
ReplyDeletePerhaps a visit to Downderry and Kingsand is best avoided just now!
I agree with Martin re cost if it’s for three years but a month in advance would be unacceptable to me. Personally I would be reluctant to pay three years up front for anything. I’m finding that because insurers have to remind you what you paid the previous year, none of my premiums - car, motor caravan or house have increased at all this year.
ReplyDeleteSir Hugh - by coincidence Lynne has just received mail from Saga offering the three year fixed deal, and it is as you said: the quoted annual premium fixed for three years. £700 per year fixed or not seems absurdly high.
ReplyDeletePhreerunner and Afoot - The actual annual premium quoted was £767 compared with the annual premium quoted by my present insurer (The AA) at £625 which in itself was a 22% increase on the previous year so I was being asked to pay £767 in advance for a month for nothing. I was not writing the post because of the exorbitant premium which is another matter - I was concerned with exposing the principle of them holding my money for a month for no value to me which to my mind is at the least sharp practice
ReplyDeleteIt is sharp practice Conrad. My home insurance premium is taken five days before renewal which I think is OK. I suppose the answer is not to renew premiums until a few days before they are due and accept you might miss a deal - but I wonder if you really would miss out? Saga aren’t the company they used to be - except for their cruises I’m told.
ReplyDeleteBoth my cars together don't come to that much - so ditch Saga - i did once ask them for a quote - it was so high I thought they were joking ! i recall that Which? thinks the same - or did. A bit like the AA, the company in the background bought their data set to exploit usually un-questioning clients: no wonder both have tanked.
ReplyDeletegimmer - I have no intention of using Saga. I will have another shop round before accepting the 22% increase from the AA.
ReplyDeleteThey are all a bunch of crooks, don't get me started.
ReplyDeleteOh, you already have.
BC - D'accord.
ReplyDeleteNot that I have any love of insurance companies but is the premium exorbitant? Would you insure someone of your age for this sum, taking in all the niggling things you know about your ageing self? I am four years older than you and I believe my car is bigger and possibly more powerful. Yet my DL quote which arrived last week is only £100 more than the AA is charging you. Last year I did a routine check with other companies: Saga was almost 30% higher than DL while RIAS (a specialist in older drivers, they say) was into four figures.
ReplyDeleteRe. your original complaint about the "lost month", DL (who run an automatic renewal system) explain the transfer of payment: "Your premium will be collected in the usual way, at least 7 days after your renewal date." You may have a point given that "usual".
RR - The main point of my post was to highlight the almost dishonest practice of them sitting on my £700 for a month for no value to me. I emailed my MP (Tim Farron) about this and he has been sufficiently in accord with my feelings to take this further with Saga. The increase in premium of 22% from the AA was only a secondary moan and only what I expect from my experience of motor insurance over the last few years. I am writing a new post to update some of what I have just written here. Looking back at my original post I see that it implies thst my current insurance was with Saga. I only contacted them for a quote (not a renewal as stated in my post) after seeing the 22% increase from my current insurer: the AA.
ReplyDeletethe old old story - caveat emptor - and look around
ReplyDeleteHaving been bombarded by mailshots from Saga about their 3-year deals I got an (online) quote from them for my household insurance last week (while my car renewal from Age UK was less than last year, my household one had, for reasons unknown, risen by over £100!!). I did however notice, by comparing the 3-year price with their "basic" policy, that the 3-year deal came with quite a price premium.
ReplyDelete"Dishonest" or not, the practice of pay now & the "goods" will arrive eventually seems to have become the norm.
Ian- welcome to the blog - new commenters are much appreciated. After going through a couple of quotes on the phone with their multitudinous questions I loose the will to live - they just grind you down.
ReplyDelete