Get 90% off insurance for 8 years no-claims

February 3, 2010 – 4:36 pm

Currently the majority of claims discounts end after five years and the average discount on offer is 65%.

AXA’s new policy looks set to reward safer, more experienced drivers with a hefty discount on their premiums after eight years of no-claims driving.

The new product launch comes at a time when motorists are facing soaring insurance costs.

Earlier this week AA Insurance warned that premiums look set to increase by at least another 10 to 15% – on top of the record increase seen in 2009.

Premiums rose sharply last year as insurers faced soaring levels of fraud and escalating personal injury costs. >> Read more: Ambulance chasers force car cover up 35%

Tina Shortle of AXA Insurance says: ‘At a time when prices are rising sharply in this market, we felt that drivers with a proven track record deserved more.

‘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.’

Aside from a 90% no claims discount, AXA’s new direct policy offers a courtesy car following any valid claim for accident, fire and theft as well as during repairs; £1m driver injury cover for an additional £34,99 a month; and claims tracking.

Lee Griffin of gocompare.com says: ‘90% is a great discount to offer but of course the policy is only suitable for safe, risk-free and experienced drivers.

‘The policy stacks up well against competitors and big-name brands. But even though they are offering an unprecedented eight years, customers still aren’t guaranteed to get that 90% discount, in the event of a claim.’

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Steve Sweeney, head of motor insurance at moneysupermarket.com, says that while he expects the policy to be popular, he recommends customers shop around online to get the best deal. ‘The discount offered is a market leader but that doesn’t always mean it’s the best product on offer to meet everyone’s circumstances.

‘It’s always best to compare against policies of a similar standing in the market place for the best overall deal.’

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