AXA re-enters direct car insurance market with the launch of a highly competitive product and market beating benefits for experienced drivers.
AXA has today launched AXA Car Insurance, a direct car insurance product offering a range of features and services packaged together to meet the needs of around 9 million of the UK’s experienced drivers. The new product will focus on those who have ‘proven’ experience – fewer accidents, more years driving and fewer convictions -and rewards these drivers with comprehensive cover at a competitive price.
This new product complements AXA’s existing motor insurance offerings. Swiftcover provides on-line car insurance aimed at the younger, internet savvy purchaser while the AXA product sold through brokers uses a sophisticated risk profiling structure to generate highly competitive quotes for safer, low risk drivers and offers dedicated claims handlers as well as simplified policy wording.
The new product offers
- 90% no claims discount: any driver who has been claim free for eight years or more will be eligible. Average competitor full NCD is 65%.
- Courtesy car whenever you are without a car (following any valid claim for accident, fire and theft) – not just while yours is being repaired.
- Driver Injury Cover – a unique £1million driver protection for all policyholders, addressing the issue that 53% of drivers think they are covered already for injury for at fault accidents.
- Online policy administration and claims tracking – unlike many other insurers, if you want to make a change to your policy or check the progress of your claim, you can do this online 24 hours a day, 365 days a year.
AXA’s new product has a NCD scale that rewards drivers for continued good driving with a rising level of discount up to 90%, the highest level in the market, for any driver who has been claim free for eight years or more.
On top of this, AXA Car Insurance provides features important to experienced drivers such as courtesy cars made available in instances of fire and theft and not just while the car is being repaired. Nearly 50% more drivers with experience rated a courtesy car as important than those with less experience.
The company is also launching a unique and innovative feature ‘Driver Injury Cover’ which for an additional premium of £34.99 per annum (less than £3 per month), provides up to £1 million cover in medical costs and loss of earnings for drivers injured in an accident that is their own fault. Currently, injuries to at-fault drivers are not covered by any other motor insurer yet 53% of motorists believe they would receive financial compensation from their insurer if they were injured in an accident they caused.
Tina Shortle, marketing director for AXA Insurance says: “Our research identified a gap in the market for those aged 45-65, with an excellent driving record and a more discerning attitude towards motor cover. This ‘experienced driver’ category wants added extras such as a courtesy car but they also want it at a competitive price. We’ve designed the new direct product to meet these needs and have also made it available through the channels they prefer, which is online or by phone.”
Experienced drivers
Research from AXA has shown that the experienced driver, like all motorists, wants a good price for their cover – in fact price was cited as important by more drivers with eight or more years experience than those with less.
However, there seems to be a big misconception as to what makes someone experienced. According to research, a third of those who have been driving for just 1-2 years consider themselves experienced and this rises to half for those who have been driving for 2-3 years.
Claims:
- 16% of those who have driven for less than eight years will have made a claim for an accident that was their fault in the last year. Only 6% of those who have driven for eight or more years will have made a similar claim.
- 30% of motorists with less than eight years’ experience behind the wheel will have had minor (at fault) bumps and scrapes in the last year that they haven’t claimed for while this drops to only 15% of those with more experience.
Convictions:
- Motorists with less than eight years experience behind the wheel are three times more likely to have been caught driving under the influence of drugs or alcohol and three times more likely to have been convicted of dangerous driving in the last year.
- Experienced drivers are also less than half (42%) as likely to have been caught using a mobile phone while driving and five times less likely to have been fined for driving without a seatbelt during the past 12 months.
Fraud:
- Honesty seems to increase with experience – nearly a quarter (23%) of drivers with less than eight years behind the wheel would exaggerate a claim to get more money
- back while only 13% of those with eight years or more driving experience would do this.
- A quarter (25%) of those with less than eight years driving experience would lie about their occupation or where they kept their car overnight to reduce their premiums – only 9% of the more experienced drivers would do this.
Tina Shortle concludes: “Experienced drivers make up well over a third of the driving population. We want to show them that their experience counts with a great product and price. We believe that AXA Car Insurance can soon become a leading player in the market.”
Note:
1. Nine million is based on 80% of those in the core target market (as defined by AXA based on age/income and other indicative factors) who said they would be interested in the enhanced NCD offering of 90% (i.e. it would be relevant to them).
2. Research carried out by OnePoll among 2000 UK adult drivers in January 2010.
