There is a large disparity between people’s greatest loss fears and their most likely sources of insurance claims, according to research commissioned by IAG New Zealand.

The Nielsen study shows New Zealanders’ main fears are car accidents (51%), followed by house fires (50%) and home burglaries (48%).

While fear of car crashes is justified given 62% of motor claims are for accidents, only 1.3% of home claims are for fire and 12% for burglaries.

Head of Corporate Affairs Craig Dowling says despite the gap between fears and reality, having cover for events such as house fires satisfies a basic need for protection and peace of mind.

“[The research] highlights that there is a difference between what people plan for and their worries, but that doesn’t mean insurance is not valuable,” Mr Dowling told insuranceNEWS.com.au. “People understand the long-term value of the coverage.”

Events such as fires and earthquakes are on people’s minds because of the devastation they can cause, the research indicates.

Mr Dowling says IAG will use the research to help mitigate risks and allay customer fears.

“If we know about customers’ fears then we can address behaviour that leads to fewer claims… [producing] a positive for both insurer and customer,” he said.

Earthquakes also rank high on the list of fears, with 42% of respondents worried. However, less than 1% of all IAG’s home claims over the past three years were quake-related.

Despite lost contents making up only 8% of IAG’s home claims, 26% of respondents worry about losing personal items such as photos, 25% fret about losing their phones and 17% fear losing laptops or tablets.

About 10% worry about misplacing their glasses or hearing aids, of which most are people aged 55 and over.

Almost a quarter of people surveyed worry about their cars or motorcycles being stolen (24%), even though only 3% of motor claims are for vehicle theft.

About 20% fear storms or floods, while such claims make up 10% of the insurer’s home claims.

Other feared natural disasters include tsunamis (13%) and volcanic eruptions (10%).