1 00:00:00,280 --> 00:00:03,480 Speaker 1: Car insurance premiums have got so expensive that some people 2 00:00:03,520 --> 00:00:06,400 Speaker 1: are looking at switching to third party only. According to 3 00:00:06,480 --> 00:00:11,479 Speaker 1: data from insurance comparison website Quashed Comprehensive car insurance quotes 4 00:00:11,520 --> 00:00:15,400 Speaker 1: have gone up in price by forty one percent. That's 5 00:00:15,400 --> 00:00:18,680 Speaker 1: in just two years. And while there hasn't yet been 6 00:00:18,720 --> 00:00:22,040 Speaker 1: a mass switch to third party only policies yet, inquiries 7 00:00:22,079 --> 00:00:25,119 Speaker 1: about third party insurance are up forty six percent. So 8 00:00:25,160 --> 00:00:28,520 Speaker 1: we're thinking about it. Chris Partfoy is the Insurance Council 9 00:00:28,560 --> 00:00:30,840 Speaker 1: Chief Executive, joins you now, hello, Chris. 10 00:00:30,760 --> 00:00:31,680 Speaker 2: Good Aston Andrew. 11 00:00:31,920 --> 00:00:34,880 Speaker 1: So, why are the premiums going up so much? 12 00:00:36,040 --> 00:00:38,360 Speaker 2: A lot with a number of factors. I think people 13 00:00:38,400 --> 00:00:41,640 Speaker 2: are driving home this afternoon, they've cars are driving around, 14 00:00:41,680 --> 00:00:46,279 Speaker 2: have been born in the last ten years, moving computers, 15 00:00:46,440 --> 00:00:51,360 Speaker 2: is a lot more electronics and modern cars and as 16 00:00:51,360 --> 00:00:54,840 Speaker 2: a result, you know, they can be more expensive to fix. 17 00:00:54,920 --> 00:00:57,640 Speaker 2: I think bumpers are one of the most expensive, expensive 18 00:00:57,720 --> 00:01:00,720 Speaker 2: than suffix, with the likes of censers and and cameras 19 00:01:00,720 --> 00:01:03,000 Speaker 2: that you have and backs of cars these days. And 20 00:01:03,240 --> 00:01:06,040 Speaker 2: it does depend on the individual situation. You know, the 21 00:01:06,120 --> 00:01:08,080 Speaker 2: cost of the car, who's driving it, where you're parking it, 22 00:01:08,120 --> 00:01:11,720 Speaker 2: where you are. They are all factors, but you know, 23 00:01:11,800 --> 00:01:17,800 Speaker 2: there's becoming more expensive to ensure them because the cars 24 00:01:17,800 --> 00:01:19,800 Speaker 2: are fixing them. Fixing them is more. 25 00:01:19,680 --> 00:01:22,080 Speaker 1: Complex if somebody brought in us because we always get 26 00:01:22,080 --> 00:01:23,959 Speaker 1: that suspicion, you know, when you have to pay a 27 00:01:24,000 --> 00:01:26,920 Speaker 1: fortune for a light bulb, you go, someone's clipping the ticket. 28 00:01:28,240 --> 00:01:30,480 Speaker 2: I look up. We acknowledge that, you know, just a 29 00:01:30,480 --> 00:01:34,119 Speaker 2: lot of just insurance that everyone's finding paying the bills 30 00:01:34,240 --> 00:01:38,960 Speaker 2: more difficult. The stats that you quite did are interesting, 31 00:01:39,040 --> 00:01:41,200 Speaker 2: but you know, the big picture steps. Indeed, last year 32 00:01:41,280 --> 00:01:45,360 Speaker 2: said that vehicle insurance inflation is coming back from about 33 00:01:45,520 --> 00:01:47,840 Speaker 2: last to twenty percent twelve months ago, at the end 34 00:01:47,880 --> 00:01:50,440 Speaker 2: of last year to fifteen percent, so it's heading in 35 00:01:50,440 --> 00:01:53,960 Speaker 2: the right direction. But you know, things are becoming more 36 00:01:54,040 --> 00:01:58,600 Speaker 2: challenging in terms of fixing the vehicles. So I'm sure 37 00:01:58,640 --> 00:02:01,760 Speaker 2: as are doing things like trying to you know, bring 38 00:02:01,800 --> 00:02:06,360 Speaker 2: costs down when they are repairing vehicles up, you know, 39 00:02:06,400 --> 00:02:10,600 Speaker 2: exceplishing hubs where they can affect these vehicles to try 40 00:02:10,600 --> 00:02:13,360 Speaker 2: and bring down costs, and trying to get costs stuff 41 00:02:13,360 --> 00:02:15,399 Speaker 2: from supplies to you. So they all trying their best 42 00:02:15,400 --> 00:02:16,600 Speaker 2: to keep the pressure down. 43 00:02:16,720 --> 00:02:19,239 Speaker 1: That's it. The premiums keep going up, So people making 44 00:02:19,240 --> 00:02:22,320 Speaker 1: the choice to drive around uninsured, I. 45 00:02:22,400 --> 00:02:24,560 Speaker 2: Like, we hope they're not, because that's putting them and 46 00:02:24,600 --> 00:02:28,040 Speaker 2: others at risk. We'll always say people should shop around 47 00:02:28,080 --> 00:02:30,640 Speaker 2: and make sure that they've got the right insurance policies 48 00:02:30,680 --> 00:02:33,720 Speaker 2: for them, whether the excess is right. But as most 49 00:02:33,760 --> 00:02:36,320 Speaker 2: people would know, if you move away from comprehensive coverage 50 00:02:36,360 --> 00:02:39,920 Speaker 2: to third party, you're not covered in terms of their 51 00:02:40,000 --> 00:02:43,640 Speaker 2: own vehicle. The third party, the person that you might 52 00:02:43,680 --> 00:02:48,040 Speaker 2: do some damage, is covered, but it obviously leaves you 53 00:02:48,160 --> 00:02:50,480 Speaker 2: at the risk of having to fund the money to 54 00:02:50,520 --> 00:02:54,480 Speaker 2: replace the vehicle yourself. So we understand that people are 55 00:02:54,480 --> 00:02:56,960 Speaker 2: finding things difficult, but first things first, they should probably 56 00:02:56,960 --> 00:02:59,120 Speaker 2: go to the insurance company and find out what they 57 00:02:59,120 --> 00:03:00,760 Speaker 2: can do to make sure that they can make it 58 00:03:00,800 --> 00:03:01,280 Speaker 2: work for them. 59 00:03:01,480 --> 00:03:04,720 Speaker 1: So the insurance companies are bargainable. 60 00:03:05,200 --> 00:03:07,640 Speaker 2: Oh absolutely, I think you know what they are a members. 61 00:03:07,639 --> 00:03:11,040 Speaker 2: But one thing the insurance counsel would say is shop around. 62 00:03:11,360 --> 00:03:13,880 Speaker 2: I've certainly seen examples of that myself where people have 63 00:03:13,919 --> 00:03:17,040 Speaker 2: shopped around and able to get a bit of deal. 64 00:03:17,160 --> 00:03:19,880 Speaker 2: So you know, it's a pretty competitive market. You should 65 00:03:19,880 --> 00:03:25,720 Speaker 2: ga able to ring around competitors of your parent assurance 66 00:03:25,840 --> 00:03:28,160 Speaker 2: insurer and find out if someone can do a bit 67 00:03:28,160 --> 00:03:28,480 Speaker 2: of deal. 68 00:03:28,639 --> 00:03:31,120 Speaker 1: Okay, so more and more people are looking at the 69 00:03:31,280 --> 00:03:33,040 Speaker 1: party insurance. I don't know if more and more people 70 00:03:33,080 --> 00:03:36,120 Speaker 1: are taking it up. But here is a perennial talkback question. 71 00:03:36,720 --> 00:03:40,440 Speaker 1: Should third party insurance actually be compulsory? Because until you've 72 00:03:40,440 --> 00:03:43,680 Speaker 1: been running too by some dude who hasn't got insurance, 73 00:03:43,920 --> 00:03:45,440 Speaker 1: you don't know how frustrating it can be. 74 00:03:46,720 --> 00:03:48,960 Speaker 2: Well, okay, it is a perennial, but it's got some 75 00:03:49,120 --> 00:03:51,559 Speaker 2: barbes here and there. If you do make it compulsory, 76 00:03:51,560 --> 00:03:55,800 Speaker 2: then you know, what price does someone pay for whose 77 00:03:56,000 --> 00:03:59,120 Speaker 2: low ESST driver as opposed to a higher AST driver? 78 00:04:00,200 --> 00:04:02,440 Speaker 2: If the government was looking to you know, capping that, 79 00:04:02,640 --> 00:04:05,880 Speaker 2: in my risk drivers would end up subsidizing HIGHERST drivers. 80 00:04:05,880 --> 00:04:09,320 Speaker 2: We've got pretty good coverage in terms of comprehensive coverage 81 00:04:10,480 --> 00:04:14,160 Speaker 2: vehicle coverage in New Zealand, so we understand and respect that. 82 00:04:14,960 --> 00:04:16,919 Speaker 2: But you know they're ours and fishoks and going to 83 00:04:16,960 --> 00:04:19,880 Speaker 2: a third party. You know, some other countries do have 84 00:04:20,040 --> 00:04:22,800 Speaker 2: third party insurance that's compulsory, but they don't have the 85 00:04:22,920 --> 00:04:26,400 Speaker 2: acal system that we heat with body because that's around 86 00:04:26,400 --> 00:04:28,640 Speaker 2: bodied palm and obviously if you have an accident here 87 00:04:28,640 --> 00:04:31,240 Speaker 2: and you're giving your covered by a SEC so we've 88 00:04:31,240 --> 00:04:34,280 Speaker 2: got the the you know, the added advantage of having 89 00:04:34,279 --> 00:04:37,120 Speaker 2: the acyssistant therefore the bodily. 90 00:04:36,720 --> 00:04:40,080 Speaker 1: Harm Okay, good, Thank you. Chris Farafoy, He's from the 91 00:04:40,120 --> 00:04:44,400 Speaker 1: Insurance Council. For more from Hither Duplessy Alan Drive, listen 92 00:04:44,480 --> 00:04:47,520 Speaker 1: live to news talks. It'd be from four pm weekdays, 93 00:04:47,600 --> 00:04:49,760 Speaker 1: or follow the podcast on iHeartRadio.