Nine To Noon Should third party vehicle insurance be compulsory?
Mar 1, 2026
Dylan Thomsen, road safety spokesperson for the Automobile Association, speaks on vehicle insurance and road‑user policy in New Zealand. He discusses the pros and cautions of making third‑party cover mandatory. Short takes cover who would pay, higher premiums and insurer risk, enforcement challenges, and why full coverage is unlikely.
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Encourage Minimum Third Party Cover
- Encourage every driver to carry at least third-party insurance to avoid victims facing big uninsured repair bills.
- Dylan Thomsen for the Automobile Association urges full cover if possible and stresses adding uninsured-driver cover to policies when available.
Compulsion Can Push Up Premiums
- Making third-party insurance compulsory can raise overall premiums because insurers must cover higher-risk drivers and recoup costs across all policyholders.
- Thomsen notes countries that push toward 98% coverage needed heavy enforcement, databases, and plate-camera networks, adding systemic cost.
Enforcement Is The Hidden Cost
- Achieving near-universal vehicle insurance requires substantial enforcement infrastructure which some countries fund through license-plate cameras and linked databases.
- Thomsen says even with strong programs you rarely reach 100% because some vehicles and drivers remain outside the system.