Insurance won't stop boy racers
5:00AM Wednesday May 23, 2007
By Audrey Young
The insurance industry says the Government is mistaken if it believes compulsory third-party car insurance will stop boy racers.
Transport Safety Minister Harry Duynhoven, who backs compulsory third-party insurance, has officials working on proposals to take to the Cabinet which he believes will change the behaviour of drivers.
Since the death of 20-year-old Scott Finn in Mt Maunganui on Saturday in an illegal car race, the Government has come under pressure from a mayoral task force pushing for alcohol bans and a review of car licensing and purchasing laws.
Mr Duynhoven said countries such as Australia, Germany, Britain and the Netherlands all had less of a problem with street racers because people needed insurance to buy a vehicle, and having affordable insurance depended on having a good driving record.
Insurance Council chief executive Chris Ryan said insurance companies would find a way to implement the policy, at a profit, if it became compulsory. But he said the industry had already told Mr Duynhoven it might not achieve the outcome he wanted.
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