Under a piece of news about the soaring cost of car insurance in New Zealand, New Zealand netizens crowded the comment area.
"I'm in New Zealand with full car insurance and the cost for a year has reached 14% of the value of the vehicle, and the premium has increased by about 30% since last year, which is crazy!
This means that the insurance company pays 1 car for every 7 cars (7 cars * 14% = 100%), which is hard to believe.
"When I'm abroad, my full coverage is about 7% of the price of the car, which is only half of the price in New Zealand!"
"Interesting", another netizen said, "I just renewed the insurance for my car in New Zealand, and the insurance premium has increased by 30% in 2 years." We have just renewed our river boats in Europe with a 0% increase in premiums......"
1. Many people are forced to switch to third-party insurance
Netizens are telling the truth.
The recent surge in the cost of car insurance in New Zealand has increased the pressure on New Zealanders amid the cost-of-living crisis.
According to incomplete statistics from local media, the national average rate of price increases in this round reached 18.9% per year.
Some insurance companies have increased their fees by more than 30% per year.
Interest.co.nz private survey yielded the following data for different companies:
In the survey, there was a big difference in personal feelings, but they all reflected an increase.
Some respondents said they had risen between 10 and 15 percent; Others reported premiums rising by more than 20%, with some even in the 30%-50% range.
Statistics New Zealand's official figures are lower, with insurance costs rising 14% year-on-year in March (the official figures do not specifically distinguish between vehicle insurance, but include other insurance costs).
In either case, it is several times higher than the inflation rate.
As long as you have a car, you can feel the aggressive price increase when the next premium is renewed.
2. Interviewees said: This is "monopolistic plunder"
Insurers blame climate change (increased disasters) and rising costs without any novelty.
But one interviewee described it as "monopolistic plunder."
The insurance industry is still reaping significant profits.
Suncorp, a general insurer (which holds a majority stake in AA Insurance), reported a 20% increase in gross premium income (GWP) to $1.4 billion in February. This is despite the fact that Suncorp New Zealand's insurance margin fell from about 13%-4% to about 9.2%.
GWP refers to the total amount of premiums paid by a customer for a policy issued by an insurance company.
In February, IAG New Zealand reported an 18.8% increase in GWP to NZ$2.015 billion, with its insurance margin rising to 20.8%.
Tower, a listed general insurer, has twice informed the stock exchange that it expects its net profit after tax (NPAT) for the full year ended September 30 to be higher than initially expected.
In this regard, some netizens complained that shopping around (comparing prices everywhere) is useless now, because everyone has risen collectively.
There are also New Zealand netizens who believe that this is a cartel-style monopoly (group monopoly).
"My insurance premiums at Vero have risen more than 3 times the rate of inflation! Then I looked at the prices of other suppliers and all of them were about the same. It looks like a cartel-style monopolistic act. ”
3. Many people turn to third-party insurance or even "run naked"
Some netizens said they had switched to third-party insurance to keep prices down.
In New Zealand, there are generally 4 types of vehicle insurance statuses:
Comprehensive = Comprehensive Insurance, i.e. All Risks = Other Insured Persons + Car Insurance
Third Party, Fire, and Theft = 第三方投保 + 汽车火灾和盗窃险，但不包括汽车碰撞损失险
Third Party only = 只有第三方投保
No Insurance = "streaking" = may be sued by an insurance company or other uninsured person for damages
Some netizens suggested that if the car itself is not worth much, only a few thousand dollars, then it is still the most cost-effective third-party insurance + fire + theft.
Some netizens said, "I have two cars: a 2020 Suzuki Vitara and a 1997 Nissan four-wheel drive. I have taken all the measures (lower the sum insured, increase the deductible) to avoid a 40-50% increase in premiums. I've just changed my Nissan to third-party insurance only for $149/year (most of the car is off-road, and it's not covered anyway).
"I search for other insurance plans every year and currently with Tower, they are still the cheapest, at least 20% cheaper (with home and contents insurance)."
There are also netizens who show off that he has been "running naked" (without insurance) for many years.
"From the first day of streaking, I realized that I had to be a responsible driver......"
However, the New Zealand Consumer Association said that it strongly disagrees with "naked running".
The New Zealand Consumer Association believes that consumers should actively explore cost-saving measures, such as comparing prices, adjusting the excess and bundling policies to obtain discounts.
While all-risk coverage is preferred, even third-party or third-party + fire and theft insurance is considered a basic guarantee.
"We recommend that you give your car some protection rather than no protection at all."