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Home / Gisborne Herald / Opinion

All cars should be insured

Gisborne Herald
6 Mar, 2024 09:15 PMQuick Read

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A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

Car insurance needs to be compulsory; if you are not insured, you face a fine of $500 minimum.

Imagine you are driving a vehicle worth $40,000. Some idiot doesn’t stop at a Stop sign and runs into you. Repairing the damage is evaluated at $10,000, but the driver who caused the crash has no insurance. Appearing in court, the judge says they have no money, “so they will pay it off at $10 per week”.

That means the aggrieved vehicle owner loses his no-claims bonus, pays the excess charge — $400-$500 — and is without a vehicle for two-four weeks.

It also means the defendant walks away, paying $10 per week for the next 20 years.

All that because they didn’t have third-party car insurance, costing about $200 per annum.

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Compulsory car insurance would also allow insurance companies to collect from a much larger revenue base and ultimately reduce everyone’s premiums.

Mike Mulrooney

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