Survey Lifts the Bonnet on NZ Car Insurance

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Survey Lifts the Bonnet on NZ Car Insurance

Auckland, 15 January 2015 – A Canstar Blue survey lifts the bonnet on New Zealanders’ car insurance habits, sending a clear message from people across the country that uninsured drivers and vehicles have no place on New Zealand roads.

Eighty six per cent in the nationwide survey supported the view that if you can’t afford insurance then your vehicle should not be on the road, says Derek Bonnar, General Manager Canstar New Zealand.

“Gen Ys, were least likely to agree (65%) compared to Gen Xs and baby boomers. Perhaps that’s because Gen Ys are more likely to be cash strapped compared to older New Zealanders.”

Being involved in an accident with an uninsured driver can be costly; 11% in the survey say they have taken an uninsured driver to court, with Aucklanders (26%) Gen Ys (22%) and Gen Xs (24%) more likely than those from other regions and age groups to do so.

While nearly all (91%) say their car insurance provider is easy to deal with, switching appears to be on the rise.

“This is the third year of our survey, and while most have remained with their current provider, 15 per cent have moved their business, up from 10 per cent* the year before. Aucklanders were nearly four times as likely to switch compared to those from other regions.

“Value for money (35%) is the biggest driver of satisfaction, followed by quality of service (23%) and clarity of policy (23%).

“The car insurance market is competitive, and Auckland exceptionally so. Consumers should always compare prices and policies on a regular basis, just to make sure they have a policy that best meets their needs.

“In addition, a quarter of respondents reduced their cover in order to manage premiums, with Aucklanders (38%) leading the charge towards lower cost cover,” says Bonnar.

Crime statistics show that car theft and theft from cars is trending downwards over the past two decades**. Despite the risks, nearly a quarter say they regularly leave valuable items in their car, with Aucklanders (38%), Gen Xs (41%) and Gen Ys (42%) most likely to do so. Baby boomers - perhaps having learned from experience - were least likely to, at 13%.

Consequently, 20 per cent had valuable personal items stolen from their vehicle at some point in their lives. Theft from cars seems to be a particular problem in Auckland, with respondents from the City of Sails more than twice as likely as respondents from any other region to fall victim to thieves.

Analysis of claims shows the majority were for accidents (66%) and a large minority for windows/windscreens, says Bonnar.

“The most unusual claims shared in the survey were for flood damage, damage caused by animals (hit a dog, lamb ran into car) and a hit and run at the cemetery.”

Taking out the Canstar Blue award in 2015 for overall customer satisfaction is AA Insurance.

“AA Insurance has achieved a three-peat, topping the overall satisfaction award for three surveys in a row. That’s quite an achievement in a highly competitive market where there is a high level of performance.”

Respondents were asked to rank their car insurance provider across seven categories:

1. Value for money

2. Claims process

3. Speed of response

4. Quality of service

5. Clarity of policy

6. Communication

7. Overall satisfaction (a separate category, not an aggregation)

Car insurance customers by region

Auckland

Most likely to regularly leave valuable items in their car (38%), least likely to say their car insurance provider is easy to deal with (89%), most likely to have switched providers in the past 12 months (31%), least likely to say that uninsured vehicles have no place on our roads (82%), most likely to have been involved in a car accident in the last 12 months (47%), most likely to have reduced cover to reduce premiums (38%), most likely to use a steering lock to deter thieves, most likely to have taken a court case against an uninsured driver (26%), most likely to have valuable personal items stolen from their vehicle (37%).

Waikato

Most likely to say their insurance company is easy to deal with (94%), least likely to have taken a court case against an uninsured driver (2%).

Bay of Plenty

Least likely to use a steering lock to deter thieves (8%), equal least likely with Otago to have valuable personal items stolen from their vehicle (9%).

Canterbury

Least likely to have switched providers in the past 12 months (7%).

Otago

Most likely to say that uninsured vehicles have no place on our roads (93%), least likely to have been involved in a car accident in the past 12 months (20%), least likely to reduce cover to manage premiums (15%), equal least likely with Bay of Plenty to have valuable personal items stolen from their vehicle (9%).

About the survey

We partner with respected professional market research agency Colmar Brunton Australia, who undertake research on our behalf using Your Source.

The outcomes reported here are from the 1594 people who have a car insurance policy that they pay for and have made a claim in the last three years. The survey has a margin of error of +/-3.2%.

ENDS

*Canstar Blue Car Insurance consumer satisfaction survey 2013

** NZ Police Crime Statistics for the fiscal year ended June 2014

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