New Survey Calls for Compulsory Insurance for all Drivers

Media Release

New Survey Calls for Compulsory Insurance for all Drivers

Auckland 13 December 2012 - Ahead of the holiday driving season a new consumer satisfaction survey* from Canstar Blue makes a strong case for compulsory insurance for all drivers.

The nationwide online survey of car insurance policy holders found 93% support for making all drivers take out a policy, says Canstar New Zealand National Manager, Derek Bonnar.

“While there was strong support for this initiative overall, younger New Zealanders were slightly less enthusiastic.

“With this level of support, perhaps now is the time for the Government to re-consider compulsory third party insurance.

“Having been involved in an accident with an uninsured driver, just like 18% of those in the survey, I can say that it is more than an inconvenience, it’s a damn nuisance.“

The survey also highlighted that young policy holders were far more likely to switch providers, compared to the general population. One in five GEN Ys said they had switched providers in the last 12 months, compared to just nine per cent overall.

“It implies that GEN Ys are more likely to be chasing a better deal on their premiums,” says Bonnar.

“That’s something for insurers to bear in mind as they think about their product offerings and plan their marketing campaigns.”

The survey indicated that men were more likely to be involved in a car accident than women, in line with international trends.

“Just over half of our female respondents had been involved in an accident, compared to 60 per cent of men, reflecting international trends** that women are better, safer and less risky drivers. These factors are also reflected in insurance premiums, which tend to be higher for men.”

The survey also posed a challenging ethical question, asking whether respondents had lied about being the driver of a vehicle involved in an accident in order to protect the actual driver.

“Thankfully telling fibs about the circumstances of an accident is not that common,” says Bonnar. “I think most people release that it is not only wrong, but could be illegal.”

While just a mere three per cent of overall respondents said they would lie to protect a friend, the behaviour was more acceptable among GEN YS with 7 per cent saying they would lie about being the driver.

“It’s hard to say what’s behind this behaviour, but it does echo another recent survey result for this age group***, where a high percentage believed that lying was sometimes justified.”

Across other age demographics:

· 4% of Gen Xs said they would say they were the driver (of a vehicle involved in an accident to protect the actual driver), compared to

· 1% of baby boomers

The Canstar Blue survey asked respondents who had an active car insurance policy (in their own name and paid the bills) to rate their provider in five categories:

1. Value for money

2. Service

3. Claims process

4. Clarity of policy

5. Overall satisfaction.

AA Insurance took out the award for overall satisfaction, says Bonnar.

“AA Insurance received 5 stars across the board, and was the only provider to be recognised as top of the class in value for money and clarity of policy.”

Other brands rated in the survey included AMI Insurance, State Insurance, Westpac, NZI, Tower, BNZ and Vero.

For those about to set off – in a few weeks’ time - on the “great Kiwi road trip”, the New Zealand Police offer the following advice:

· Make certain the car is in good repair and serviced regularly, the fuel gauge is accurate, and that you will not run out of petrol.

· Keep a check on the air pressure of your tyres and the condition of the spare tyre.

· If your car's performance is of concern, don't commence a journey, particularly a long trip, or drive at night.

· If travelling alone or a non-routine journey, it may be a good idea to tell someone of your plans and expected arrival time.

About the survey

Canstar Blue commissions Your Source to regularly survey 2,500 New Zealand consumers to measure their satisfaction across a range of products and services.

The outcomes reported here are from the 1,764 people within the survey group who currently have an active car insurance policy in their own name and pay the bills.

Age Groups:

Gen Y: 18-29

Gen X: 30-44

Baby Boomers: 45+

*To view the full results of the Canstar Blue survey go to: www.canstarblue.co.nz

ENDS

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