Ministers back off compulsory third-party cover

The Government is reconsidering proposals to introduce compulsory third-party insurance after a survey showed 92.4 per cent of drivers are covered.

The survey, issued yesterday by Transport Minister Steven Joyce, showed 7.6 per cent either did not have car insurance or were unaware if they did.

But the high percentage already insured has led the Government to reconsider making third-party insurance compulsory, Mr Joyce said.

"While this survey doesn't mean we are ruling out compulsory third-party vehicle insurance, it does mean that the proposal may not deliver the benefits that might have been expected, because New Zealanders already have a high level of insurance."

The survey was conducted as part of the Government's development of the Safer Journeys road safety strategy to guide New Zealand to 2020.

Announced late last year - and to be released some time this year - the Safer Journeys strategy looks to improve road safety throughout the country, with the specific emphasis on young people.

The Government is seeking actions that will impact the New Zealand road safety initiative greatly and in a positive way at the least additional cost to motorists, Mr Joyce said.

"This research will be important to further inform debate about which road safety actions will have the most impact," he said.

Results showed that although 70 per cent of people who said they did not have insurance were under the age of 40, there was a "fairly even split" between those aged under 25 years and those older than 25.

As it stands, vehicle insurance is not compulsory in New Zealand.

In other countries, including the United Kingdom, vehicle insurance is compulsory and also covers the cost of injury - something New Zealanders would not get, as the ACC levies covered it.

The level of uninsured vehicles in the UK was also similar to that shown in the New Zealand survey, with up to 6 per cent of vehicles not insured.