There is growing concern surrounding the majority of young Kiwi drivers and the debts they could face without insurance.
An article by Radio NZ has shed light on research from the Commission for Financial Capability, which shows only 59% of drivers aged from 18- to 34 have car insurance due to high insurance premiums.
Young people are unaware of the financial risks of crashing without any cover, Insurance Council of New Zealand (ICNZ) chief executive Tim Grafton told the publication.
Grafton noted insurance cover for young drivers or first-time car owners could cost up to $400 a year. Some, he suggested, may feel that it is not worth getting even third-party insurance because their car was old or cheap.
Commission for Financial Capability personal finance editor Tom Hartmann, meanwhile, reportedly said New Zealand should introduce black box technology that records individual drivers’ performance and rewards good driving with low premiums.
“Internationally, we’re seeing the use of devices in order to give a more accurate idea of how good a driver a young person is, and… we’ve seen them save the cost of insurance of up to 40% on those premiums,” he added.
