ASA Adjudication on Saga Group Ltd

Ad

A leaflet advertising Saga Motor insurance featured text in a circle that stated "SAGA PRICE GUARANTEE". Text underneath stated "Some insurers claim to offer you the lowest price. Saga guarantees it*. If you receive a lower quote for like-for-like cover, we'll beat it". Further text on the back of the leaflet, headed "The Saga Price Guarantee", stated "If you receive a lower motor insurance quotation for like-for-like cover, it's easy to take advantage of our price guarantee. Either call us on the number below with your renewal information and full details of the alternative quote to hand, or send in your alternative quote with your renewal acceptance in the postage-paid envelope provided".

Footnoted text linked to the asterisk at the bottom of the ad stated "*The Saga renewal premium and competitor quote must be based on like-for-like cover. We will beat the alternative quote by at least £1. The price guarantee applies if you renew before your renewal date, as shown on your schedule. It excludes admin/credit charges, and is not available in conjunction with any other offer or if you renew online. Proof of quote price and policy details may be required".

Issue

The complainant, who was told by Saga that they would not match a like-for-like quote from another insurer because a lower limit applied to the SAGA price guarantee, challenged whether:

1. the low price guarantee on like-for-like quotes was genuine, and

2. the ad was misleading, because it did not make clear that significant conditions applied to the guarantee.

CAP Code (Edition 11)

Response

Saga Group Ltd (Saga) said, if their existing motor insurance customers were offered a cheaper renewal price on like-for-like cover from an alternative insurer, then they would offer their customers a lower price than that alternative.  They explained that if the difference between the two prices was substantial then they would ask customers to send in details of the alternative renewal price, to ensure that cover was like-for-like, before they reduced their own price.  They said they therefore believed the ad was not misleading.

Saga explained that there was no lower limit to the amount that they would reduce their price to and they submitted documentation that provided details of the overall price reductions they had offered in February and March 2009.  Saga pointed out that the terms and conditions of the offer made clear that cover must be like-for-like and that proof of policy details and quote price may be required.  They said, where all relevant details were met, they would guarantee a cheaper price and that there were no other terms and conditions to the price guarantee other than those stated in the ad.

Assessment

1. & 2. Not upheld

The ASA noted that the documentation provided showed that a large number of Saga's customers had taken up the offer and that the renewal price guarantee provided savings ranging between £1 and £487.  We therefore considered that the offer was genuine.

We considered that the terms and conditions to the offer, as stated in the ad, clearly explained that the competitor quote must be based on like-for-like cover and that proof of quote price and policy details may be required.  We also understood that no lower limit or other significant condition applied to the price guarantee offer.  We therefore considered that the significant conditions of the offer had been made clear and concluded that the ad was not misleading.

We investigated the ad under CAP Code clauses 3.1 (Substantiation), 7.1 (Truthfulness) and 17.1 (Guarantees) but did not find it in breach.

Action

No further action necessary.

Adjudication of the ASA Council (Non-broadcast)