Drivers of old cars may pay more in ACC levies

Drivers of old cars could be hit with higher ACC levies if the government links the levy to safety ratings.

Motorists who drive old cars could be forced to pay more in ACC levies than those in newer, safer cars.

ACC Minister Nick Smith said a review would look at whether linking the ACC levy to safety ratings of cars would help reduce the annual $336 million cost of road crashes, the Dominion Post reported.

Vehicle registration could be matched with a car's make and year and linked to a safety rating and a discount or extra premium.

Dr Smith said he had not made a decision about the change and the financial incentive might be difficult to introduce as New Zealand has a relatively old fleet and not everyone could afford to upgrade to a newer, safer car.

Other things being considered were drivers paying levies according to their accident and infringement records, and shifting more of the ACC road levy from registration fees to fuel so those who drive more pay more.

Labour ACC spokesman David Parker said he would oppose a system that saw better-off drivers pay less because they could afford better cars, but he would consider more "sophisticated" proposals.

- NZPA