AA Saga merger "perfect"

The merger of AA and Saga sees two insurers who focus more on features than price join forces, according to one financial website.

Speaking before the takeover was announced, moneysupermaket.com’s Richard Mason said that Saga, which is a specialist car insurance provider for over-50’s, was known for the features its policies offered, rather than how cheap they were.

He said that the match between the companies, which creates a combined customer base of 17 million, was perfect. Mr Mason added: "The AA, too, doesn’t have the lowest priced products but it is renowned for service."

Saga was voted the second best car insurance company by Auto Express readers, while the AA came in 30th out of 45.

Aron Thompson, Head of Insurance at uSwitch said that over-50s and over-75s had been badly served by the insurance industry and that he hoped that the merger would not dilute Saga’s range of products.

According to Age Concern, despite Castle Cover, Age Concern and Saga specialising in over-50s insurance, one in four over-75s can not even get a quote.