AXA will not match rival’s 10% driver price cut

MOTOR insurance company, AXA Ireland, yesterday said it does not plan to match its main rival’s discount plans, for drivers who have no penalty points.

Hibernian Insurance covers almost one-third of the country’s two million drivers, and it will give new, or existing customers a 10% discount on motor insurance policies, if they have not incurred any penalty points, from next month.

This could save young motorists hundreds of euro a year, and will mean an average reduction of between €70 and €100 for most policy holders.

However, the company will impose a 10% loading on any customers who have six penalty points or more, and will add a further 5% for each subsequent point accrued.

Only 117 motorists, or 0.005% of Irish drivers, had received at least six penalty points at the end of September. A further 1,949 drivers had four points, and 55,332 had received two points.

Hibernian managing director Dick O’Driscoll said: “Road accident figures are still a huge concern to us, and the future success of the penalty points system depends on support from everyone, including the Garda Síochána, the National Roads Authority, and insurance companies which are responsible for penalising repeat offenders where it hurts most, in their pockets.”

Transport Minister Seamus Brennan yesterday urged the 10 other motor insurance companies to take similar steps, to help reduce premiums for safe drivers.

While other major companies say they have reduced motor premiums as a result of the falling number of serious accidents in the past year, the second largest motor insurer said yesterday it is not planning a similar policy.

AXA Ireland, which has a similar share of the market to Hibernian, said it issues policies based on trust, and on the basis the applicant has told them everything that might change the nature of the risk.

An AXA spokesperson said: “Very few people will have penalty points at the end of the day, so I’m not sure that what Hibernian are doing is more transparent than anybody else. If anybody had up to six penalty points for relatively minor offences, we would not penalise them.

“We have already brought in average reductions of about 6% to our customers, and up to 20% in some cases.”

But a spokesperson for Mr Brennan appealed to the other motor insurers to come on board, llowing them check whether policy applicants have penalty points.

“The two main deterrents against dangerous driving are the fear of losing your licence and insurance costs going up. So having incentives to drive more safely is obviously welcome,” said the spokesperson.