Even under recession, insurance still remains a priority
An interesting release from AA Insurance;
Nearly a quarter would consider downgrading cover to balance budget, but 98 percent think everyone on the road should have at least third party
While cutting corners on the household budget has become second nature to many New Zealanders, insurance remains a priority. AA Insurance reports that although almost a quarter (23 percent) of those surveyed in the 2009 AA Insurance Drivers Index would downgrade their cover to balance their budget, only four percent would consider cancelling their car insurance completely. And a compelling 98 percent think that everyone on New Zealand roads should carry some type of insurance.
The 2009 AA Insurance Drivers Index surveyed 3,708 New Zealand drivers aged 18-65 and found almost all people think every driver should carry some sort of vehicle insurance, even if they would consider reducing their cover to meet their household budget.
“Some people consider cancelling insurance in a bid to save money,” says Martin Fox, Deputy General Manager, AA Insurance. “However, there are better ways of managing your insurance costs than cancelling your policy. If you’re on a tight budget, having an accident or having your car stolen could really make things tough.”
“Sometimes people think a low value car is not worth insuring. And the owner may feel that if the car is written off, they can afford to replace it. However, if this driver has an accident with another car, they could also face a repair bill running into the thousands.”
“This is why most New Zealanders believe everyone on the road should hold some type of car insurance.
“Car insurance isn’t just about you and your car – it’s about the damage you might do to someone else’s property if you have an accident. That’s what third party insurance covers.”
AA Insurance staff have noticed increasing numbers of people looking into instalments and other payment options.
“People are also thinking about increasing their excess but being very careful about it. If they are on a strict budget they sometimes decide they’d rather not face an increased cost if they do need to claim and so stick with the standard excess.
“We’re certainly seeing people shopping around more and getting quotes on different insurance options before making a purchase. This is positive because it gives people a better understanding of which insurance is best for them.
