Car Insurance Claims higher in Auckland

Aucklanders always knew they were paying too much for car insurance and car insurance claims!  Per the article below, the NZ Herald reports that higher incidence of accidents in Auckland is being blamed for the extra cost people have to pay to get car insurance – ie car insurance claims are higher in Auckland than the rest of the country.

Aucklanders are paying 16% more on average for car insurance a year than what the average Kiwi pays.  Canstar research shows people who live in the country’s biggest city pay on average $824 per year – $136 more per year than the average Kiwi and $330 more a year than people who live in Hawke’s Bay, which is the cheapest place to insure a car in New Zealand. Jose George, general manager of Canstar New Zealand, said the higher rates in Auckland were likely linked to greater risk factors.  “There is a higher incidence of accidents in Auckland compared to other parts of the country.”

He said the higher number of Aucklanders who commuted to work by car was also a factor. Census data from 2013 showed 82.6 per cent of people who travelled to work in Auckland went by car. That compares to 64.6 per cent of people who travelled to work by car in Wellington. “What that is suggesting is the risk factors are far more pronounced in Auckland.” – hence the higher car insurance claims. George said higher insurance costs in Auckland may also indicate that Aucklanders were insuring higher spec cars.

Canstar’s research also found the baby boomer age group on average had lower insurance premiums compared to younger generations. Baby boomers – those who are currently aged between 53 and 71 – paid on average $661 per year while Generation X (aged around 35 to 52) paid $676 per year. Generation Y (aged around 21 to 34) paid the most on average at $723 per year. The research also confirmed previous figures which show females on average pay less than males. The average amount paid by males was $694 a year compared to $680 for females – because women are better drivers, we know that!

But despite the cost of insurance, few people were taking steps to make it more affordable. Just 23 per cent of people paid their premiums in instalments to manage the cost and only 28 per cent had their home and car insurance with the same provider. George said combining home and car insurance with the same provider was a common- sense approach which could give people economies of scale. While spreading the cost of insurance could help make it more affordable it could also cost more in some instances.

The research surveyed 1,680 Kiwi drivers. http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11798293

What the article didn’t talk about is car insurance value for money – comparing apples with apples, not tangerines.  Car insurance premium price is one factor, but there’s more to consider.  If a bare-bones no-frills mass-market product with poor service and few or no benefits when it comes time to make a car insurance claim is all that’s required, then the lowest price in the market wins.  Most motorists have higher expectations though and expect full service and convenience like free late model courtesy cars – Crash Management partners with selected insurance companies and insurance brokers to deliver just that.

Car accidents and car insurance claims can be traumatic and very disruptive, in our experience company fleets and other sophisticated drivers will happily pay a few dollars more on annual premium in order to avoid the compounded inconvenience of a cheap product when the worst happens.

 

2 Responses

  1. Diana
    | Reply

    Good retail view but actually car insurance premiums have never been cheaper in New Zealand, and are only a fraction of the global comparative. Car values are higher in NZ than other first-world markets though so it all makes for a very tight market. I don’t see MORE car insurance claims proportional to the growing population though but car accident repair cost is increasing due to higher proportion of replacement parts, damage does not seem to be ‘repaired’ anymore. Good coverage of the car insurance premiums v. car insurance claims issue Crash.

  2. Jan H
    | Reply

    I think you deserve what you you pay for. Car insurance premiums are very cheap in NZ and I think that explains the poor service from most car insurance claim call centers some of which are not even based in NZ. Not Crash Management though, our Medical Assurance car claim was extremely well handled and your service was great. Medical Assurance should recommend Crash Management to all their clients when car accident claims happen. I was lucky a friend referred me and I’d rate the experience 100% satisfaction. The Medical Assurance claim instructions were helpful too thanks, I found them at https://crashmanagement.nz/clients/insurance-claims/mas-medical-assurance-society-car-claims/. I see all the other car insurance claims pages are there too, very helpful. And thanks for the nice new’ish free courtesy car too – the icing on the cake thanks!

Leave a Reply

Your email address will not be published.