The New Zealand Automobile Association (AA), which also provides insurance through AA Insurance, has expressed disappointment at the government’s decision to end the Accident Compensation Corporation’s (ACC) vehicle risk rating scheme.
The decision is a “backward step” at a time when a rising road toll is demanding more actions to improve road safety, according to AA principal advisor on regulations Mark Stockdale.
“Improving the safety of the vehicle fleet is acknowledged as a key action to improve New Zealand’s road safety, and much more needs to be done to promote vehicle safety to Kiwis,” he noted. “This is why the AA wants the government to mandate the display of safety ratings at the point of sale – something the vehicle risk ratings could have been used for.”
Last week, during the announcement of ACC levy changes, the government said the vehicle risk rating programme would also end as it reportedly proved challenging for ACC to administer and there was a lack of evidence that it was contributing to a safer vehicle fleet in New Zealand.
Now, Stockdale claims the vehicle risk rating, which has only been in place for a few years, has helped raise public awareness about vehicle safety.
“In the long run, the AA believes vehicle risk rating will help change the purchase behaviour of New Zealanders, and in turn influence the safety standard of vehicles imported and sold by car dealers,” he said.
Moreover, the AA highlighted that while the government announced ACC levies will remain unchanged, this is not true for motor vehicle levies.
“As a result of scrapping vehicle risk rating, the annual motor vehicle levy for 65% of car owners will increase,” Stockdale added. “Levies for 38% of cars currently in the safest band will rise $28 – more than double the ACC levy they currently pay.”
