Compulsory third-party insurance? (yes/no)

[MaxB]

I have lived and worked in 3 countries that have compulsory insurance. 1 was levied through rego fees the other 2 left to the (closed) market.

FWIW a couple of observations:

- What works in Europe or the US does not mean it will work here especially considering our rural background. It is easy to get away with pricing young people off the roads if you have cities with first world public transport.

- Insurance is much, much cheaper here. That must change with all risk type now having to be included and the monopolistic behaviour of insurers.

- If you think that being compulsory will somehow make insurers behave you are dreaming. In my first hand experience of making a claim in which I was 100% blame free (the other driver was prosecuted by police) the car insurers were caught inspecting the wreck of my bike at the dealers without permission. They were looking for anything to get away with not paying out. They even tried to say that my non-EU headlight bulb contributed to the accident. I was mown down while stationary.

When that didn't work they tried delaying tactics in court until eventually after 19 months I got my pay out. My insurers would not pay me until they were sure they would get theirs.

Like so many of this governments well meaning ideas I think this will end as a giant cock up. YMMV

[PrincessBandit]

now it would just be another expense I feel I shouldn't have in my pursuit of riding pleasure.

I think it's a good idea.
If you can't afford the insurance you can't afford the vehicle. End of story.

Unfortunately not all fun is free. Oh that it were!!
I'm with riffer on this one - kinda like someone once said to me "if you can't afford protective gear you shouldn't be riding a bike". Should all be part of the expected expense.

[Mikkel]

Where is the "It's a disgrace this is not already implemented" option?

It's a very good idea indeed. Currently there are a lot of roadusers who decides not to get insurance because they either think they could never be at fault and/or the value of their "vehicle" does not warrant any safety-net. Then there are some who exercise flawed reasoning such as "if I hit someone they are likely to be insured so why should I bother...".

Alas, even if someone up high sees the light and tries to get the ball rolling I'm thinking that the red tape would delay the process at least half a decade.

[MaxB]

Just got an email from a mate in the UK for a quote for an 05 Blade. Approx. $500 for a years cover.

Great.

Until you see the conditions. Third Party Only, lives in the country (Dorset), 10000 mileage limit, garaged, alarmed, 10 years no claims, 10 years no tickets and unmodified (not even a GPS).

If he lived near a town the quote would triple. Any smashes or tickets and the premium skyrockets.

Welcome to Harry's brave new world.

[awayatc]

Yep, I hit the "Bad Idea" button!

Reason: If it compulsory, then the insurance companies will hike the price.

Same reason 20 year old 250's retail fir the same price they did 15 years ago.

What would be better is to educate the people that it is the best idea.

Another thing is that just because something is compulsory, and legislated, there will always be a percentage of people who just don't care and flout the law.
Just my 10c worth.

Unfortunately I have to agree....I have lived with compulsary insurance overseas, where it was at least 10x more expensive....My vehicles are at least 3rd party insured for a song, but my bike isn't....
I weigh up the cost and the risk, and make decisions accordingly.....
Trust my ability to do so way better then Nana's....

[Hitcher]

New Zealand amazes me at times. Draft legislation to ban the use of radar detectors, yet resile from compulsory third-party insurance. Anything that stops boi racers buying WRX STIs on a-dollar-down finance, and Lance Loser from Wainui cruising around in an unwarranted HQ Holden with no brakes and four bald tyres has to be a good idea.

[ynot slow]

Is good if it can work.
So if you can produce evidence of full or your own third party policies then you are not charged fine.

[HornetBoy]

Yep, I hit the "Bad Idea" button!

Reason: If it compulsory, then the insurance companies will hike the price.

Same reason 20 year old 250's retail fir the same price they did 15 years ago.

What would be better is to educate the people that it is the best idea.

Another thing is that just because something is compulsory, and legislated, there will always be a percentage of people who just don't care and flout the law.
Just my 10c worth.

I hit the bad idea thinking pretty much the same thing.Good idea for L plate boy racers in their 500hp skylines and wrx's but otherwise...

[Coyote]

My regoless, warrantless and insuranceless black ZX10R with cops lights is becoming less of a dream and more of a plan...

[Jantar]

.... Third Party Only,....

But let's compare like for like. In most countries, including the UK and USA, third party also covers personal injury, and that is what pushes the price so high. Here we have ACC for personal injury, and our 3rd party insurance is only for 3rd party property damage.

[TLDV8]

good idea... it should be part of the rego payment.

I am all for third party insurance but hope it would never be like here.
Rego (including third party) for the DR650 and camper van came to around AU$1176 per year. ($650 and $526)
I had AMI third party on the TL and car back home (NZ) and it was fairly cheap.

(Off topic a bit but when you change the ownership you are charged a percentage of the vehicle value i am told. (2 %)
NZ seems to be following some of the Australian standards,there is talk of front number plates here for 2009.Radar detectors are illegal here as far as i know)

[Coyote]

I think you are wrong about prices going up.

There are many NZ Insurance providers plus AUS ones too. With this huge amount of new business they will all be after as bigger slice of the cake as they can get. The prices should fall considerably.

It's called open market competition!

They could fall during the short term, but premiums will go up eventually. Just not so much that we realise what they're doing and we get rid of the compulsory law.

[Ixion]

Huh - The insurance market certainly isn't state owned.

Compulsary insurance = a larger and new potential maket for all players in that industry.

Insurance companies wanting a larger share of this easy cake will need to be as attractive as possible to punters = Lower prices.

.

Yeah. Just like petrol companies. Competition certainly keeps down the price of petrol doesn't it. With all the petrol companies competing to offer th elowest price.

What planet are you on at present ?

[Ixion]

New Zealand amazes me at times. Draft legislation to ban the use of radar detectors, yet resile from compulsory third-party insurance. Anything that stops boi racers buying WRX STIs on a-dollar-down finance, and Lance Loser from Wainui cruising around in an unwarranted HQ Holden with no brakes and four bald tyres has to be a good idea.

That is all well and good for you. You are rich.

But it will not be the boi racer in the WRX who will be hit by such a law. He will just soak up the $5000 , if he can afford a blinge dout WRX another $5K is neither here nor there. And if Lance Loser doesn't bother with a WoF (or, by inference , rego) , why on earth do you suppose he will be so punctilious about organising compulsary insurance

No, the people who will be hit by this will be old people and poor people.

People like Mrs Ixion. Her little 1986 Sunny is worth only maybe $1000 now (even though she's had it from new and it's done less than 50000km). She is the most careful defensive drive *ever*, and drives less than 1000km a year. But having to pay out another $1000++ a year, for nothing, may be the cost that makes it impractical for her to keep it.

Or, the people with several vehicles. Like me. Can only drive one at a time, but EACH vehicle will cost the $1000++ . Can't justify that. And if something has to go, I'm afraid it will have to be the bikes.

I can see this law putting a LOT of bikes off the road. Somebody who buys a little scooter to nip down to the shops, doe sso because it is cheap. It's not cheap anymore when there's $1000++ going out every year.

This is classic class legislation, enacted by the rich, for the benefit of the rich , at the expense of the poor.

[Oakie]

This is classic class legislation, enacted by the rich, for the benefit of the rich , at the expense of the poor.

But from a Socialist government. Funny thing huh?

Umm, you need to stop scaring people with that $1000 for third party cover figure you spout off too. In the other thread on this subject 4 of us so far have got quotes from Swann insurance. All of them were $130 for the year for third party.