{"id":9858,"date":"2019-02-18T07:00:03","date_gmt":"2019-02-17T18:00:03","guid":{"rendered":"https:\/\/www.drivingtests.co.nz\/resources\/?p=9858"},"modified":"2022-06-23T10:16:56","modified_gmt":"2022-06-22T21:16:56","slug":"why-is-the-cost-of-car-insurance-so-expensive","status":"publish","type":"post","link":"https:\/\/www.drivingtests.co.nz\/resources\/why-is-the-cost-of-car-insurance-so-expensive\/","title":{"rendered":"Why is the cost of car insurance so expensive?"},"content":{"rendered":"\n

There are no reliable figures for the overall number of non-injury accidents, but they are factored into our insurance costs<\/span>. <\/span>Insurance is expensive for these reasons:<\/span><\/p>\n\n\n\n

  1. Newer vehicles tend to have more complex parts<\/span><\/li>
  2. Some parts can’t be repaired or reused and therefore need to be completely replaced<\/span><\/li>
  3. The technology required for fixing cars is ever more expensive<\/span><\/li>
  4. We have a lot of accidents which also damage people’s property (walls, fences, traffic infrastructure, etc).<\/span><\/li><\/ol>\n\n\n\n

    New vehicle part costs<\/b><\/h2>\n\n\n\n

    Smash the windscreen on an old Commodore and it’s a fairly straightforward fix, but do the same on a new Lexus and there are sensors for rain and light moulded into the glass and what would be a few hundred dollars on an older vehicle is now five grand! The same applies with the front grille which can now be home to forward-facing cameras and radar cruise control as opposed to simply gaps for air to get to the radiator. <\/span><\/p>\n\n\n\n

    In fact, technology has now invaded almost all of the car with many vehicles having more than 30 individual computers, complex electronics in the wing mirrors, reversing cameras and sensors at the back and a multitude of plastic parts that must be discarded if broken. <\/span><\/p>\n\n\n\n

    Older cars don’t have airbags. When a steering wheel airbag is deployed, the whole steering wheel must be replaced; if all the airbags go off in the car, it’s often too expensive to replace all of them (along with any other damage sustained) and the vehicle is written off.<\/span><\/p>\n\n\n\n

    Skills cost money<\/b><\/h2>\n\n\n\n

    Mechanics are becoming more specialised and the equipment they use is becoming more expensive. Computers are required to diagnose problems. One trend making it slightly easier for mechanics is that many cars are now based on the same platforms, just with different interiors and body shells. But another trend – electric and hybrid vehicles – means that mechanics are required to know even more. Cars sometimes take much longer to repair and mechanics find it harder to keep a stock of spare parts because there are just so many different parts.<\/span><\/p>\n\n\n\n

    Theft risk<\/b><\/h2>\n\n\n\n

    Older cars are easier to steal, meaning that there’s more risk of total loss, but new cars with transponders that unlock and start the engine are not immune due to<\/span> relay theft<\/span>.<\/span><\/p>\n\n\n\n

    Number of crashes<\/b><\/h2>\n\n\n\n

    Despite technology to reduce crashes such as<\/span> automatic emergency braking<\/span><\/a> and electronic stability control, the number of vehicles on the road continues to climb and that means an increased risk of having a crash. More cyclists and<\/span> distracted pedestrians<\/span><\/a> increase the probability of an incident.<\/span><\/p>\n\n\n\n

    What car parts have changed radically in the last 40 years?<\/b><\/h2>\n\n\n\n