Cash-strapped Kiwis downsize cars: survey

New Zealanders are downsizing cars to cope with increases in running costs, says an AA survey.

Sixteen per cent of drivers downsized their cars in the last year and another 30 per cent are thinking about it, according to the latest AA Insurance Drivers Index.

Fuel economy was given as the main reason. Others included managing the household budget, no longer needing a large car, and reducing maintenance costs.

The annual survey of 3708 New Zealand drivers aged 18-65 found that older age groups - 45-54 and 55-64 - were more likely to downsize (17 per cent), with the youngest age group, 18-24, least likely to (13 per cent).

However, the love affair with the car is not over.

According to the survey, 46 per cent said their household had two vehicles, 18 per cent had three, and 11 per cent had four or more.

Wellington had the most one-car households (36 per cent) and fewer multiple car households than other New Zealand cities.

Christchurch had fewer one-car households (23 per cent) and more multiple car households.

This probably reflected the higher rates of public transport use in Wellington, said AA Insurance deputy general manager Martin Fox.

When it came to insurance, 22 per cent more drivers downgraded their comprehensive car cover to third party or third party, fire and theft coverage compared with 2007.

"We see this as positive because it means people have a better understanding of which insurance is best for them," Mr Fox said.

A few people considered cancelling their insurance completely to save money but most achieved a compromise, he said.

- NZPA