Not upheld: premium charges for mid-term policy adjustments and cancellation terms following a claim complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr C complained about additional premiums charged by AXA when he changed cars twice mid-term on his motor insurance policy in July and August 2025, and about not being informed that the full remaining premium would be payable if he cancelled the policy following a claim. AXA explained the premium increases reflected the change in risk from the new vehicles and that full premium payment upon cancellation after a claim is standard policy terms. The ombudsman found AXA treated Mr C fairly by only re-rating based on the car changes themselves and confirmed that the full premium payable clause is standard practice in motor insurance, even though Mr C was not explicitly told this during calls.

The Ombudsman's reasoning

The ombudsman determined that AXA acted fairly by only re-rating the policy based on the change of car (a fundamental change in risk) rather than recalculating all factors. The ombudsman confirmed that insurers are entitled to assess and price risk changes at mid-term adjustments, and that AXA's approach was consistent with how other insurers treat similar situations. Regarding cancellation, while Mr C was not explicitly told the full premium would be payable, the policy terms clearly state this is standard practice for motor insurance policies when a claim has been made.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website