Compulsory Car Insurance
by Geraldine Roper
Insurance. It’s an uncomfortable word.
When the times comes time to renew my car insurance, I often find myself reluctant to fork out the cash.
Most of the time, its money for nothing. But to be honest, I’m one of those people who would be too scared to drive without it.
Unfortunately, not everyone is like me.
Between 25 to 40 per cent of motor users in New Zealand are uninsured. And the rest of us pay higher premiums to cover the debt these people create with their irresponsible driving.
Last week Transport Safety Minister Harry Duynhoven announced compulsory third party car insurance could be in the cards. Many people are cheering this move while others are more hesitant.
The benefits that would come with compulsory insurance are obvious.
People would no longer be screwed over by uninsured drivers who cause accidents. It seems incredibly unfair that people who pay for third party car insurance are left with nothing if they are hit by an uninsured driver.
Many of these people don’t have the means to pay for the damage they cause so they escape payment through weekly installments.
Often the hassle that comes with this is too much and the victim or insurance company give up hunting these payments.
Looking from this point of view, one can see why third party insurance should be compulsory.
However, there are disadvantages that need to be considered:
Everybody knows insurance companies are scum.
If insurance was to become compulsory, what would stop these companies from raising the prices?
Insurance is compulsory in many countries throughout Europe and prices are significantly different.
The average price for third party insurance in New Zealand is around $150 a year, while in Ireland it’s the equivalent of over $2000 a year! Who will still be cheering when this happens?
It has also been argued that compulsory insurance will make our road safer.
The argument goes, menacing boy racers won’t be able to drive those beastly cars anymore as they won’t be able to afford the compulsory insurance.
ut why would the cost of insurance take these 15-year-old boy racers off the road? Their parents will pay the insurance just as they paid for the car!
Whatever your opinion is on the matter, now is a good time to start letting people know as this topic will be up for heated debate over the next few months.
People would no longer be screwed over by uninsured drivers who cause accidents. It seems incredibly unfair that people who pay for third party car insurance are left with nothing if they are hit by an uninsured driver.
Most third party policies supply a protection against uninsured drivers - check the small print. A lot of people don’t realise this. A lot of people also don’t realise they can cause a ridiculous amount of damage and still be covered - some policies at my old employer covered up to $20million!