Survey: Compulsory third-party car insurance has massive support

Survey: Compulsory third-party car insurance has massive support

Most Kiwi drivers think third-party insurance should be compulsory, new data from customer satisfaction agency Canstar Blue shows.

The survey of 1,932 drivers found that around three-quarters of respondents thought that third-party insurance should be mandatory.

Canstar Blue general manager Jose George said the results repeated the finding from last year.

“The feeling is stronger again amongst baby boomers with a response rate of 87%, that’s nearly nine out of ten people in that generation.”

“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.”

Opponents say New Zealand already has a form of third-party insurance, for injuries at least, via the ACC system.

Canstar Blue’s research found that the annual car insurance spend was $668 - down $20 from 2017.

Gen Yers pay an average premium of $693, falling to $687 for Gen Xers and $613 for Baby Boomers. 

This was attributable to the higher risks for younger drivers – Canstar Blue said a male driver aged 15 to 19 was eight times more likely to have an accident than a male in the lowest crash-risk age group of 55 to 59 years old.

For women, 15 to 19-year-old women were six times more likely to crash than the lowest crash-risk age group of 45 to 49-year-old women.