I listened to an interesting programme on the radio a few days ago, the programme highlighted some elderly people who had home insurance with SAGA, and the fact that some had been loyal customers for a number of years but their premiums had risen to over £1,000 per year, and yet when their children had checked online it seems they were paying over 4 times too much compared to other insurance quotes. The MD of SAGA was on but as usual when quizzzed he couldn't answer individual cases, but stated that they do regualrly check peoples quotes... I would suggest if you have elderly parents who have insurance via SAGA or possibly anywhere else to check it for them. My personal feeling is that they realise that some elderly people think that as SAGA are geared to the older generation, they think they are being looked after by a caring company, the elderly may not have the internet to check how competitive their insurance is or may find calling round a number of other insurers an ordeal.

This happens to many people who do not switch every few years. The previous week on BBC Moneybox highlighted a NatWest Home Insurance case where a lady was being charged over £1000 for a renewal, when NatWest were offering the same cover to a new customer for about £350.

Having worked in the industry I can tell you how it works. New customers are given a discounted rate in the first year, second year this discount is reduced and by the third year the premium is at correct level for the risk. If you then continue to renew, you will be hit by increases most years and the excess premiums you will be paying, will be helping your Insurers offer these discounts to new customers. This is my experience, but it does appear to be way many companies operate judging by news items/forum posts that I see.

My advice is to only stay insured with one company for up to 2 years, unless you are held captive by a bad claims record or other risk issue e.g subsidence or flooding. If you have had claims, you can still shop around, but may have problems obtaining quotes and therefore should consider using a broker. If you have had a previous subsidence issue, you are a bit stuck. AXA will look at quoting on such risks after 10 years of the subs issues being fixed and Legal & General will quote after 15 years. Before 10 years on subs affected properties, you can still get quotes, but only via specialist policies offered by brokers such as Home Protect or Bureau Insurance Servies or other such brokers. With flood affected properties, obtaining any new quotes that include flood cover can be very difficult. Suggest speaking to local brokers, as they will be more likely to have found companies who may quote.

If you are with Saga and you can get a cheaper quote they have a price guarantee and will match your new quote. That is for car insurance though, and I'm not certain if house insurance is the same. Obviously though if an elderly person needs to get the price match they must get someone to go online and get the quotes for them through one of the price comparison sites.

Just had a renewal quote for my father Car Insurance from SAGA, it's increased by 61% from last year, only change is, he's a year older.

Whilst insurance premiums have have fallen by 10% according to the AA.

http://www.telegraph.co.uk/finance/personalfinance/insurance/motorinsurance/10203809/Car-insurance-premiums-fall-by-10pc-says-AA.html

Spoke to Saga H/O who strongly hinted it was to do with his age, asked them to confirm the reasons in writing, but they were wishy, washy.

Are they still offering the price guarantee? If so, then get an online quote and tell them to match it. Even if they don't have the price guarantee you can still ask them if they will match it. If not, I think he should go somewhere else.

Hi DD

Yep they've still got the price guarantee, thing is all the insurers are increasing the premium, this is down to increase in age.

Are they still offering the price guarantee? If so, then get an online quote and tell them to match it. Even if they don't have the price guarantee you can still ask them if they will match it. If not, I think he should go somewhere else.