The Press WEDNESDAY, SEPTEMBER 26, 1962. Premiums For Motor Insurance
Most of the public were probably unprepared for increases in motor insurance premiums of the order that now seems possible. For instance, if reports of the tariff companies’ intentions are confirmed officially, the owner of a private car valued at £5OO will be asked to pay at least £5 10s more each year for his insurance cover. The fact that this cover will be more truly comprehensive than an ordinary policy has previously been may be overlooked by many motorists; ana unless the tariff companies give more explicit details of the financial reasons for their new charges, there will almost certainly be widespread criticism. Motorists may, however, find solace in two considerations: first, many of them have already been paying extra premiums for additional benefits that will be conferred automatically by the new policies; and, second, competition in the New Zealand motor insurance business should prevent exploitation. Everybody—including insurance executives anxious for good public relations—must hope that the scale of charges already suggested can be moderated after both tariff and non-tariff companies have had an opportunity of reappraising their problems. Motoring costs in New Zealand are already high for
the average man who owns and maintains his car; and although insurance charges have been lower than in other countries, any addition to the burden is unwelcome. Insurance costs represent a telling warning about carelessness and negligence on the highway. If the cost of accidents had not increased markedly, higher premiums might not have been necessary. The incorporation of special-risk coverage in each ordinary vehicle policy is to be welcomed because it will mean that all motorists, and not just the more prudent ones (as at present), will be protected against the onerous contingencies of vehicle ownership in present-day conditions. However, because all motorists apparently will now pay for special indemnities, previously reserved for those prepared to pay surcharges, it might have been expected that the average rate of premium would be stabilised. Anything that encourages care on the roads must have some claim to public sympathy; but because statistics suggest that, in spite of its problems, comprehensive motor insurance generally has not been unremunerative, the tariff companies would be wise to adduce reasons for the apparently substantial increases in premiums.
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Bibliographic details
Press, Volume CI, Issue 29937, 26 September 1962, Page 14
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380The Press WEDNESDAY, SEPTEMBER 26, 1962. Premiums For Motor Insurance Press, Volume CI, Issue 29937, 26 September 1962, Page 14
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