Motor Insurance

[Caran]

Before OH went away he thought he had better notify Saga about some modifications he has made to the MG. It has taken them two weeks to decide they owe him a refund of one penny and an admin charge of £12, this means they are taking a payment of £11.99 from his bank. I think this is absolutely disgusting. They only emailed this today so he hasn't been able to do anything about it yet. Can they really justify taking £12 for a one penny refund?

[frugalfred]

Sadly, yes they can. If one reads the policy conditions, any amendments are chargeable. One agrees to these conditions when taking out the policy. I have just insured with Saga (changed from RIAS) and the woman on the 'phone explained the charge to me.

[tonyav]

I would tell them to forget the 1p refund and to deduct it from his next renewal quote.

[Mamyalynne]

It is the amendment of the policy taking into account the modifications that has generated a charge of £12, not the refund.

[Caran]

I wondered about that but he won't be home for two weeks and they say they have processed the payment.

[Caran]

It will be interesting to see the actual policy and what has changed things.

[frugalfred]

mamalyanne is right - the charge represents the admin. costs of informing the underwriters of the policy of the changes.

[frugalfred]

There will be no policy changes, but the underwriters will be aware that the MG has been modified. A standard question on all proposal forms is, "Has the vehicle been modified in any way?" You OH was acting with good sense in telling Saga about the modifications.

[Caran]

Oh we'll looks like he will have to put up with it then, thanks for your input folks.

[EDDIE51]

If he had not informed them of the mods they could have refused to pay out if he had claimed so it is just as well he did it.