HIGHER INSURANCE

Wairarapa Times-Age, 6 July 1938, Page 9

HIGHER INSURANCE

RATES FOR MOTOR INSURANCE DECISION OF INSURANCE ' COMPANIES (By Telegraph—Press Association.) AUCKLAND, July 5. Higher rates for private and business motor-car accident insurance, falling more heavily upon motorists who have made a claim under their policy in the past 12 months, have been introduced throughout New Zealand by a majority of insurance companies, according to an Auckland insurance company manager. He said that the increase took the form of an additional fee of £2 for motorists who had had a claim in the past year and that, in addition, the no-claim bonus had been abolished whether or not a claim had been made. “The only reason is the extremely high loss ration,” he continued. “Some companies have been losing money on their motor business in New Zealand. Trivial claims have increased enormously, and claims for larger amounts have also been more frequent. The rise in insurance now adopted has been largely due to the increased number of vehicles on roads, extra insurance business not having offset the number and amount of claims received. The cost of repairs has also increased, and this has a distinct bearing on the amount of claims to be met.” “Even with the increase of £2, rates in New Zealand are still below those of New South Wales. A car that costs about £7 to insure in New Zealand today after the rise would cost over £ll in the New South Wales metropolitan area. The majority of claims are caused by collisions. As a result of the heavier traffic, increased claims are only to be expected with the greater road congestion and higher accident insurance rates for cars are almost an inevitable result. An outstanding example is in England, where rates, judged by New Zealand standards, are very high. There have been cases of motorists from England coming to the Dominion with unexpired policies and bringing their cars with them who have, in exchange for the unexpired part of the English policy, received two years’ insurance and a cash refund in Auckland.”