Majority of Kiwis in favour of compulsory car insurance
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A majority of Kiwis believe that at the very least third party insurance should be compulsory for the three million plus passenger vehicles currently on New Zealand roads, according to research conducted by Canstar Blue.
The survey questioned 1,932 drivers and found that around three quarters of Kiwi motorists felt that insurance should be a compulsory requirement on our roads.
Jose George, Canstar Blue general manager said the results of the latest survey are the same year on year, with little change in the minds of Kiwi motorists about insurance cover.
"The feeling is stronger again amongst baby boomers with a response rate of 87 per cent, that’s nearly nine out of ten people in that generation,” said George.
“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.”
The obvious benefit car insurance buys is that, at the very least, you are covered for any damage you inflict on someone else and their vehicle.
If you’re insured, Motor Insurance policies in New Zealand generally include a clause or extension giving you protection in this situation.
Once your insurer has assessed the damage, they will often cover the costs of repair to your vehicle, waive your excess and keep your no-claim bonus intact.
The only difficulty is that you need the uninsured driver to accept responsibility or there's no guarantee of ever getting your money back.
So if you do have an accident it's recommended that you gather as many details as you can (name, rego of their vehicle and contact details), take pictures or video evidence on your phone and identify any witnesses to the accident and gather their contact details.
Canstar Blue's research also found that the average cost of car insurance has fallen.
Survey results showed that the average annual car insurance spend is $668 – down $20 from 2017. Gen Yers pay an average premium of $693, falling to $687 for Gen Xers and $613 for Baby Boomers. In 2017, average premiums were $723, $676 and $661 respectively.
Men were also found to pay a higher average premium of $684, compared to $652 for women.