Motor AXA claim cost of claims increasing - can it be validated

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gnf_ireland

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I got my car insurance renewal quote from AXA the other day and the premium has increased by 5.3%. They have included the lines "We keep our premiums as low as possible. Unfortunately due to the cost of claims, we must reflect this in our prices. Last year you paid xx.xx for your policy"

Is there any way to validate this claim? I am curious more than anything else, and what level of claim payouts have been paid by AXA over the last few years?
 
5% increase in a yr is probb in line with inflstion and the general increase in the cost of stuff? Seems reasonable enough. But to answer your question, i dont know how you would properly validate their assertion short of carrying out some sort of audit.
 
@gnf_ireland
If you've time, try get a quote from SuperValu and see how it compares. It's underwritten by AXA. A few minor differences in cover, but it'd be interesting to see if there's a price difference in your favour.
Unfortunately I can't help validate or invalidate their statement.
 
RedOnion said:
@gnf_ireland
If you've time, try get a quote from SuperValu and see how it compares. It's underwritten by AXA. A few minor differences in cover, but it'd be interesting to see if there's a price difference in your favour.
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I ran that through there a few moments ago. For the exact same cover in terms of extras and excess, Supervalu comes in at 16 euro more expensive.
What I did notice though was Supervalu charge for Comprehensive Drive Other Cars, whereas it is included in my AXA policy. If I left that out, the cost would be ballpark the same, but handy to have !
 
jim said:
5% increase in a yr is probb in line with inflstion and the general increase in the cost of stuff? Seems reasonable enough.
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I know what you are saying, but like lots of people I have had a number of big jumps in insurance cost over the last while. My wife's quote was about 20 euro lower in November from the previous year (with AXA also), so was wondering when mine had gone up.

I thought inflation was running around 2% :)
 
gnf_ireland said:
What I did notice though was Supervalu charge for Comprehensive Drive Other Cars
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Ah yes, sorry I forgot that.
Don't forget you get some SuperValu vouchers I'd you buy through them. I think it was 40 quid last year. It'll be fun to trade them off against each other for the same policy!
 
Last week AXA quoted me €650 to renew my policy which was €450 last year. Went with Allianz for €380; cheapest policy I’ve ever had, even cheaper than my wife's on a similar car.

It’s a mind boggling industry...
 
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Yes definitely is a strange industry. What I find unusual is there is no real means of using technology to reduce the premiums in any way due to good behaviour. A simple GPS tracker could easily be used to 'score' your driving and risk profile. Anyone with a phone in the car with location turned on is effectively doing the same thing, but giving it away for free.

It will be interesting when more InsureTech's hit the market and see what sort of innovative products they offer.
 
gnf_ireland said:
Yes definitely is a strange industry. What I find unusual is there is no real means of using technology to reduce the premiums in any way due to good behaviour. A simple GPS tracker could easily be used to 'score' your driving and risk profile. Anyone with a phone in the car with location turned on is effectively doing the same thing, but giving it away for free
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AIG and AXA both have this as an option, mainly aimed at younger drivers though. https://www.aig.ie/personal/young-drivers-car-insurance-boxclever
 
Turning back to the original question I think that insurers are not obliged to justify their prices.
Most insurance policies are annual contracts only so they can decide what terms to offer you at next renewal.
You can argue the toss but would probably get more sense from your cat.
It is the law of supply and demand at work I'm afraid....
 
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