Of concern, 18-24 year olds have driven much of this overall decline, with the incidence rate for this age group dropping by more than 10% points over the last 4 years.
Incidence of Car Insurance – by age
Source: Roy Morgan Single Source (New Zealand) August 2006 – July 2007, n = 7,895 & August 2010 – July 2011, n = 8,176.
Pip Elliott, Client Services Director, Roy Morgan Research, says:
“The decline in overall motor vehicle insurance has been driven by a decrease in the number of drivers with comprehensive insurance, with the proportion covered by third party property insurance remaining relatively stable.
“This decline in comprehensive insurance coverage is potentially linked to a decrease in overall affordability of general vehicle ownership. One key factor in determining a vehicle’s ongoing running costs is petrol prices, with New Zealand drivers experiencing a 30 cent/litre increase in unleaded petrol costs over the last 5 years.
“With New Zealand drivers currently travelling on average more than 15,000 kilometres per year, this increase in petrol prices is starting to hurt the hip pocket, potentially leading drivers to cut other vehicle expenses where they can.
“Since motor vehicle insurance is not compulsory in New Zealand, this increased cost is one potential factor causing fewer drivers to opt for insurance. Not surprisingly, the decline is greatest amongst the price sensitive 18-24 year-olds segment, with this group earning on average only marginally above $25,000 per annum.”
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