GET THOSE UNINSURED CARS OFF THE ROAD! Car insurance repairs are suffering…


New Zealand is one of the very few first-world countries that do not have compulsory 3rd party insurance, and it’s reported that close to a quarter of NZ driver’s have been hit by an uninsured driver. The rate’s even higher in Auckland at almost a third of car insurance repairs & claims caused by uninsured drivers!

Comprehensive motor insurance is very inexpensive in NZ by international standards and can be further reduced by accepting a higher excess –  a smart move for any careful driver.  And 3rd party cover is extremely cheap at only around $100.  So there is absolutely no reason responsible private motorists and business fleets should have to tolerate the mayhem caused by uninsured drivers.  They are predominantly old low value cars, but is also disproportionately the choice of Generation Y drivers – we say choice, because there is no excuse to opt out of the cheap protection provided by 3rd party cover.  Uninsured drivers no doubt site the financial burden of any insurance, but REALLY, this is a question of personal responsibility and there is no excuse.  It’s incredibly difficult, time-consuming and frustrating trying to retrieve accident repair costs from an uninsured driver, but the uninsured are suddenly aggrieved and demanding of generous compensation at the merest paint scratch to their (often) un-WOFed, un-registered 20yr old rolling health & safety hazard.

There is a view that cheaper car insurance can be obtained by bundling all house-hold policies for a better rate, but ultimately you only get what you pay for.  At Crash Management we often see disputes between policy holders, assessors, and insurance companies when it comes time for car insurance repairs, especially around the issue of second-hand parts on late model cars.  In our experience the specialist motor vehicle insurers ultimately deliver far better value and happier customers.  Protecta Insurance is an excellent example of a specialist motor insurer, along with Nissan Insurance who promise new replacement parts.

There is a decades old argument in NZ is in favor of compulsory 3rd party insurance, and this could easily be facilitated via the annual car registration fee to ensure everyone complies fairly.  It would take more policing though and some tough penalties to get unregistered cars off our road – and we’re all in favor of that.  The benefits are clear – to all innocent drivers and more broadly to the wider economy. So what’s the hold up?




4 Responses

  1. Ken Black
    | Reply

    Totally agree with this. Every week we see the results of irresponsible drivers who do n’t have even 3rd party insurance and then don’t take any responsibility when they crash into another car. The uninsured ones are usually old bangers anyway so no loss, but the the not at fault car ends up paying again. Funny thing is when an uninsured car is damaged by an decent car, the old bangers suddenly the pride and joy and the pressures on panelbeaters to return them to mint condition. Try telling that to an insurance assessor who only wants to pay the cheapest price for the cheapest job! Get 3rd party insurance compulsary in NZ now!

  2. Bert Wouda
    | Reply

    I am a victim of on of these anti social uninsured drivers , it cost my insurance $4-5000 to repair my car .
    I have contacted national and Labour Party ……not needed they say !!!!!!( we live in a 3 rd world country my overseas friends say) ……if you send me your email I can send you a copy of a reply from one of our “smart” politicians .


    • Crash Management
      | Reply

      hi Bert – we’re very sorry to hear you’ve been the victim of another irresponsible uninsured driver. The time for compulsory insurance in NZ is long over-due and at least 3rd party should be mandated. It would also help get all the un-insurable, unregistered clunkers off our roads which would be a bonus for driver health & safety. All fleet management professionals support the principal so the government’s reluctance is inexplicable. We’d be very interested to see the response you received and happy to publish it to help raise awareness of the problem – Thanks for taking the time to raise the issue, we’re right behind you!

  3. Alan
    | Reply

    I fully sympathise with Bert’s comments. NZ is so far behind the rest of the world in regard to compulsory car insurance. I also agree the government has no appetite for solving the problem created by uninsured drivers but I think there’s strong resistance from underwriters too, given the high risk/low value business compulsory 3rd party would create. Insurance aversion is also quite prevalent with new immigrants, cultural perhaps, but that’s no excuse. Unfortunately we see the problem impose by these irresponsible drivers every day , recoveries can be extremely difficult and our fleet clients often suffer the loss even though not at fault. This must change and soon – keep petitioning the politicians!

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