The ACC Minister says the increase is necessary because of the rising costs associated with car crashes. But looking at the number of vehicles and the number of injuries, they are tracking fairly closely. Costs are increasing but so is revenue from vehicles. Hard to see justification for a 24 percent rise there. But when you are a monopoly insurer it doesn't matter whether the customer buys the excuse or not.
If you were faced with an increase in your household contents insurance of 24 percent you might decide to shop around for a better deal. That's as it should be. But when the state monopolises insurance you are at their mercy.
The funny thing is the people who will moan most about this and be hardest hit are the same people who think that the state should run everything so that terrible thing called PROFIT can be avoided.
It's a simple connection many seem incapable of making. If you want choice and competition and lower prices you have to accept the profit motive.
4 comments:
Excellent post Lindsay!
I hope you will bring this to the attention of the media. They did a beat up headline of it the other day, by no analysis of the words/figures from the minister. This fails to surprise me nowadays. ;)
I cringed when I saw this story. Yet another $50 I have to find thanks to the govt who consider me rich and therefore unworthy of a tax cut (sorry, tax relief Dr Cullen) because I choose not to have children (in part because I can't bloody afford them!).
I have never had an accident on 10+ years of driving, I shudder to think how low my premiums would be if the Nanny State didn't think profit seeking organisations (where all bloody tax originate from!) were the root of all evil. Yet another reason to vote National!
Sorry for the rant Lindsay, and in response to your sleepless post, I think your increased wakefulness is well worth it.
Merry Christmas, Sean.
Hell will freeze over before socialist Labour allows competition to ACC.
Lindsay, I'd like to wish you and your family a very happy festive season.
All the best from a an assiduous reader of your blog. Cheers.
I hesitate to be pedantic, but the term "registration" is frequently mis-used.
As a motor registration historian allow me to make the distinction between 2 terms:
Registration is when a vehicle [new, imported, restored] is added to the Motor Vehicle Register, and issued with registration plates.
Licensing [usually invoiced annually] is a fee for the use of a vehicle on public roads. The ACC levy forms part of the annual Motor Vehicle License which is posted to you and which most of us pay promptly. Notice this invoice is headed License, not Registration.
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