Drivers want all to insure
Most New Zealanders want compulsory third-party vehicle insurance – but insurers are warning it could make everyone’s cover more expensive.
A survey by research firm Canstar Blue found three-quarters of the 1932 drivers spoken to thought third-party insurance, which covers the damage someone might do to another person’s property, should be compulsory.
Older drivers were more certain – almost 90 per cent of baby boomers supported making such cover mandatory.
‘‘Cars are often one of the most valuable items we own, both in terms of financial worth and convenience. Obviously, people want to be financially covered if they have an accident and they want to get back on the road as quickly as possible. Insurance is an enabler,’’ Canstar general manager Jose George said.
His research showed the average annual car insurance bill this year was $668, $20 less than 2017.
Men pay an average premium amount of $684 compared with $652 for women.
Tim Grafton, chief executive of the Insurance Council of New Zealand, said it was not as straightforward as some people believed.
‘‘The key driver for compulsory third-party insurance elsewhere in the world is usually the need for bodily injury cover. This is less of a concern in New Zealand because of our ACC system,’’ he said.
Grafton said that if third-party cover was compulsory then everyone would end up paying more.
‘‘If a driver did slip through the cracks and was found to be uninsured due to a breach of policy conditions, there would have to be a way of meeting any liability claims that may arise against them.
‘‘A government fund would have to be established, which everyone would need to pay into, therefore increasing insurance premiums for all.’’
The Automobile Association said it was not clear how a compulsory scheme could be effectively enforced.