Kiwis Advocate for Insured Drivers

Kiwis Advocate for Insured Drivers

1 in 5 Kiwis reduce cover to manage premiums

Auckland, 13 January 2016 – The most recent survey by consumer satisfaction company Canstar Blue has shown that there is still strong support for all New Zealand’s drivers to be insured.

Eighty two per cent of those surveyed who currently have a car insurance policy, say that uninsured drivers have no place on our roads, a slight drop from the previous year.

Close to a quarter of Kiwis (24%) and a third (32%) of Aucklanders have been in a car accident with an uninsured driver.

More than one in five (22%) Gen Ys have let their policy lapse with the majority citing financial reasons.

Many Kiwi policy holders are taking action to manage their insurance costs whether by reducing their cover/sum to lower premiums (19%) or having a look around the market to compare prices and ensure they are getting the best deal (40%).

There are many ways that New Zealanders can work towards lowering the cost of their insurance, says Canstar New Zealand, General Manager Jose George.

“If you are looking for ways to reduce your car insurance costs but still maintain cover you can increase your excess or change cover to third party. It’s also important to check that your cover accurately reflects the value of your car, as cars generally depreciate in value over time.”

Despite some initial costs, getting car insurance is an incredibly smart move as it can provide peace of mind and can potentially prevent a much bigger financial loss in the future.

“The cost of accidental damage to your car (or someone else’s) is usually big, so no matter how unlikely you might think an accident is, it’s important to give yourself a safety net just in case,” says George.

“Sixty eight per cent of Kiwis have made a claim on their car insurance due to an accident, distantly followed by theft of items at 5% and theft of the car itself at 4%.”

A fifth of New Zealanders have had valuable personal items stolen from their cars. Aucklanders are the most at risk of break ins to their vehicle with a quarter claiming to have had items stolen from their car.

Kiwi cover habits

More than half of New Zealanders have third party cover (52%) meaning they are well protected to cover the costs of any damage they cause to another vehicle.

Close to a third of Kiwis (30%) have flexible insurance policies that consider how and when they are using their cars, and adjusts their fees accordingly.

Many consumers look to organise all of their insurance under one supplier, 68% of Kiwis have other purchases with the same insurance company who looks after their car insurance. Wellingtonians are the most likely (74%) to have one provider for many insurance plans.

“It is a great idea to have multiple policies with one provider as there are many benefits including reductions on premiums or loyalty discounts,” says George.

The survey asked consumers to rate their car insurance provider across eight variables:
1. Value for money
2. Communication
3. Claims process
4. Policy clarity
5. Claims outcome
6. Service quality
7. Claims lodgement
8. Overall satisfaction

In the latest Canstar Blue survey, AA Insurance was the overall winner of the Canstar Blue Customer Satisfaction award – Car Insurance for the fourth year in a row.

AA Insurance were rated 5-stars by their customers in every category across the board, the only insurance provider in the survey to do so.

AA Insurance offer customers insurance that can be customised to suit their needs, with member discounts, multi policy discounts and young driver flexibility all thrown into the mix to create an insurance provider that customers are putting their trust in, says George.

“The number one driver of satisfaction for car insurance is the quality of service (83%) closely followed by satisfaction with the outcome of the claim (82%) and how easy the claims lodgement process is (81%) showing that money is not the number one driver for consumers when it comes to their insurance.”

Car insurance habits by region: (only exceptions)

Auckland: Aucklanders are the most likely to have been involved in a car accident with an uninsured driver (32%), most likely to have had a valuable personal item stolen from their vehicle (25%), most likely to have reduced their cover/sum insured in order to reduce their premiums (25%), most likely to have a policy that considers how and when they use their car, and adjusts their fees accordingly (37%), most likely to have third party cover (56%), most likely to have let their car insurance lapse in the last 12 months (13%), least likely to have other purchases with the same insurance company (61%) and most likely to have compared prices in the last 12 months (49%).

Waikato: Those in the Waikato are least likely to have had valuable personal items stolen from their vehicle (9%) and least likely to have third party cover (41%).

Wellington: Wellingtonians are least likely to have a policy that considers how and when they use their car and adjusts their fees accordingly (24%) and most likely to have other purchases with the same insurance company (74%).

Canterbury: Cantabrians are least likely (equal with Otago) to have been involved in a car accident with an uninsured driver (16%), least likely to have reduced their cover/sum insured in order to reduce their premiums (11%), least likely to have let their car insurance lapse in the past 12 months (2%) and least likely to have compared prices in the last 12 months (28%).

Otago: Those in Otago are least likely (equal with Canterbury) to have been involved in a car accident with an uninsured driver (16%) and least likely to have other drivers (children/spouse/partner) named in the policy (55%).

Bay of Plenty: Those in the Bay of Plenty are most likely to have other drivers (spouse/children/partner) named in their policy (78%).

About the survey
Canstar Blue commissions respected professional market research agency Colmar Brunton Australia, to undertake research on our behalf using SSI NZ panel.

The outcomes reported here are the results from a survey of Kiwis who currently have a car insurance policy (which they pay for) and have made a claim within the last 3 years. In this case there were 723 people surveyed.

*This geographical breakdown outlines exceptions only.

ENDS

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