AXA claim drivers can't afford excess

12 March 2012

car crashAXA, the car insurance behemoth, says that they've seen a big increase in the number of customers who are not able to authorise repairs to their damaged cars due to lack of cash to pay for the excess.

They said that , last year, 61% of motor claims saw drivers not having the money available in claims, "leaving people with potentially unroadworthy cars, or at the very least with damage that will deteriorate due to lack of repair".

One-third of motorists don't have enough in available savings to cover their excess, with 48% having savings of less than £500 and a third (34%) less than £200.

AXA found that nearly two thirds (62%) knew that at least part of their excess is voluntary, and with that, drivers might have cut their cost of insurance cover but if they can't afford to meet their part of a claim, they there's a chance they could be left with what is ostensibly a dangerous vehicle.

Sarah Vaughan from AXA says: "We appreciate that premiums have risen a lot in the last couple of years and we can understand consumers looking at ways of saving a bit of money. But if this means that they can't afford their excess, it is a completely false economy."

And fuel isn't getting any cheaper either! Hurray!

TOPICS:   Motoring   Insurance

26 comments

  • Brizoh
    Voluntary excess? What a load of pish that is.. aye, I'll agree to pay £250 if I have a smash in order to save a tenner off my policy price.
  • Boris
    How did that car climb a ladder?
  • Tom
    The cunts shouldn't fix the prices to force you into a stupidly high voluntary excess then.
  • SgtMunky
    ''One-third of motorists don’t have enough in available savings to cover their excess, with 48% having savings of less than £500 and a third (34%) less than £200.'' = One third of our customer base are young drivers who, as an industry, we price fix and therefore fuck them tightly into these high initial premium, high excess, high voluntary excess on top of that, and the high interest rate if these young ones can't afford to pay it all off in one go. Oh.. and in the event of a claim, we generally will still try to avoid paying out at all costs, possibly leaving a law abiding, empty pocket student, completely fuckered. /rant
  • PokeHimPete
    "it is a completely false economy" DING!
  • JonB
    It's better not to make a claim to repair your own car at all, as the insurers will whip your insurance price up faster than you can say "voluntary excess" if you do. Maybe that's what the canny drivers are thinking?
  • Spencer
    Seriously... Do yourself a favour and get the highest possible voluntary excess to reduce your payments as much as possible then just pay out of pocket. Unless I've written cars off and killed people I would never get involved with insurance companies again. My Missus got her car written off because someone went into the back of her while she was stationary. Completely not her fault. Yet when her renewal quote came in a few months later - it was on her record that she'd been involved in a non fault accident. This had put her premiums up by almost 40% because, and I quote "Our research shows that drivers in non fault accidents are more likely to cause accidents themselves in the years after, so we have to offset that risk by increasing your premiums". She's never had an accident prior or since... Seriously - as long as no-one is seriously hurt.. don't get the money hoovers that are insurance companies involved. try and be amicable and try to give someone the chance to make up for their mistake. I had my neighbour reverse out of his drive and crunch up my front wing. He knocked, he apologised, and offered to pay for it's repair. I asked the garage I took it to for a quote: £350 private or £800 through insurance. Plus the cost of a hire car for 2 days a grand... Seriously.. just don't be a twat.
  • AlanN
    Blaming the insurance companies is a bit pointless. Car insurance is a very competitive market so, unlike say energy prices, margins should be small. Blame the 'whiplash' sufferers who often double the size of any claim, and therefore the premiums required.
  • Sicknote
    Ha ha, this story is so funny because stupid people volunteer to increase the cost of their policy by saying "...yes please, in the event of an accident I want to pay more from my own pocket..." So, when I buy my insurance I always have ZERO voluntary excess, no legal cover because there are millions of no win / no fee law firms that would hop for the chance to represent me and I always pay in the whole lot in one lump. Ok, if you're not as sensible with money as I am you credit card rate will probably be lower than most of the insurance companies monthly interest rate. If we all insisted that insurance companies stuffed voluntary excess up their arses then the true cost of policies would fall because they couldn't hide the extra cost. One last thing, in the last 3 years I've had other drivers smash into my car and I always tell the insurance company I will claiming for lost earnings, medical and out of pocket expenses. You cannot believe how helpful they become in wanting to get your car fixed and upgrade your loan car. Insurance companies, fuck them hard and love every minute of it - I do.
  • AlanN
    Sicknote, by claiming for extras you are not messing with insurance companies, you are forcing premiums to be higher, surely you see that? Don't get me wrong, where this is a genuine loss you are entitled to claim but there are more and more false claims of this type nowadays and there is little insurance comanies can do to stop them. Therefore insurance premiums go up, especially for younger drivers who have more accidents.
  • Sicknote
    @AlanN Just the suggestion that you are going to claim is often enough to rattle the sabres with insurance companies; I own my own business and I do claim for genuine loss but what I'm saying is don't be afraid to get under their skin. It does work and I have seen results in better speedier service.
  • Bazinga
    People in not being able to afford things but getting them anyway shocker.
  • AlanN
    @Sicknote Your insurance company is always going to help you try and claim whatever you want when you are claiming on another insurer's policy. Why shouldn't they? They don't foot the bill, the other insurer does. They look good because you get good customer service and they are not out of pocket. Its just common sense, nothing to do with rattling them.
  • Sicknote
    @AlanN In the last 3 years I've had 1 t-bone & 3 rear end shunts with the last one in September causing a total loss; in all cases the first company to call me was the other sides insurer and in one case a claims handling company acting for the other side. It surprised me as I always thought that my insurer would be all over me as I'm their customer and none of these were my fault.
  • AlanN
    @Sicknote Surprises me too, didn't know that would happen. Oh well, good to hear it all got sorted smoothly. My main point is that people need to look at the premium setting process as a two way process. In the same way that companies don't absorb massive losses on underproced insurance, they also don't make massive profits on artificially high premiums. They set premiums based on claims and in recent years the cost of claims has gone up an awful lot. Some of this is their own fault. They sold details of accidents to ambulance chasers for a fee and those ambulance chasers convinced people to claim for 'whiplash'. Compensation plus the fee of the solicitor can often be more than the actual damage but some people think they have a right to it so the rest of us pay.
  • BobW
    Most insurers don't make money out of the actual insurance. Most will operator at an exceptable lose ratio. The premium income is invested, this is where money is made. The problem is there are too many leeches in the system, hire car, broker commission, legal, medical, garages etc. All take a cut. Insurance companies just have to mop up all the costs and ultimately pass them on.
  • Mike H.
    I blame BMW/Audi drivers. CUNTS!
  • Spencer
    @ Sicknote... Can I just ask... Do you ever spare any thought for anybody other than yourself? You do realise that the cost of your claiming 'expenses' and 'out of pocket' end up being passed on to the 3rd party don't you? In so much as that... You're running up their premiums for them. Admittedly, they may well be at fault... and it may be because they're driving like a cock (the amount of times I've almost had an audi driver go into the back of me is crazy...) but I find that usually most people DON'T want to have a car crash and if they hit you... It's usually a genuine mistake - and not intentional damage. Taking them for all you can may end financially crippling them, and it plays right into the insurance companies hands. You say "Insurance companies, fuck them hard and love every minute of it – I do.".. you realise that the more people put in for larger claims, the higher everyones premiums get. 2011 saw an average policy price rise by 34%. - And according to AA insurance over half of the average insurance policy now goes to cover the cost of whiplash claims, legal fees and 'out of pocket expenses. Lastly - how do you manage to get involved in so many accidents? I cover about 30k miles a year, and often around London or Glasgow. Had 1 accident since I passed my test 12 years ago - and that was cos my neighbour hit my parked car...
  • corbyboy
    @Sicknote 4 incidents in 3 years? Your premiums must be sky high!
  • The m.
    I just feel like writing: "CUNTS"! Thanks
  • Chelmsfordman
    Comments like that 'by the real me' stop this site being Work and child safe and add nothing......mature...real mature....parents must be proud of you.
  • Sicknote
    @Spencer Hi there, outside my family I don't care 2 figs for anyone else. I should explain that I run my own business and if I can't work because someone is rushing to a tennis lesson and happens to plough into the back my stationary Volvo; then they have a problem. For a whole week I was hunched over like an old man unable to even lift my 6 year old son; I had to pay my medical bills and I couldn't work so my family suffered. Other people reading this might get sickness benefits from their employer, I don't. This accident happened over 2 years ago and the other side still hasn't paid my insurer for the repairs to my car, my medical bills or my out of pocket expenses. I wrote to them 2 months after then accident to get payment and they said no; the legal bill is now about £5k. Another accident last September and a young lad with less than 1 year of experience driving ploughed his mothers' Vauxhall Corsa into the back of my car while I waited at a junction. His front passenger was too cool to wear a seat belt and had to be carted away to hospital. As for my premium, I have 75% no claims and pay no more than £300 a year fully comp with protected no claims. Insurers and they belligerent attitude to settling their customers' claims is largely responsible for driving the rise in insurance.
  • ExCrement
    sicknote how is it that you are involved in so many accidents. Could it be you are driving in some inappropriate/inconsiderate way or is the area you travel in some sort of dickhead driver hotspot. PS I havent done any rear end shunts even with 40k pa plus milage and a BMW driver, is that some sort of record!.
  • Sicknote
    @ExCrement Taking into account that these are rear end shunts when I'm stationary at junctions or roundabouts and my Volvo S80 always has the lights on; I think you've answered your own question there.....
  • ExCrement
    Take it you drive in london then. best move.
  • What C.
    [...] AXA claim drivers can’t afford excess – AXA, the car … excess, with 48% having savings of less than £500 and a third (34%) less than £200. AXA found that nearly two thirds (62%) knew that at least part of their excess is voluntary, and with that, drivers might have cut their cost of … [...]

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