Vero and Good Shepherd NZ are trialling a new car insurance product aimed at improving financial security for Kiwis who might otherwise be excluded from the market.

Consumers accessing a Good Shepherd loan to finance a car now have the opportunity to purchase Vero’s Drive Car Insurance – low-cost, comprehensive car insurance.

Premiums will be fixed at $NZ8 ($7.48) per week and customers won’t pay any excess on their first claim.

Good Shepherd NZ CEO Fleur Howard says insurance can be an important element of financial resilience, but for those who can’t afford to pay the premiums or excesses the financial fallout can be enormous.

“A car accident can be a double blow for our clients,” she said.

“Not only do they not have the money to repair or replace the car, but their ability to get to work is affected because they often work irregular hours outside of accessible public transport schedules.

“Imagine having to continue making repayments on a vehicle you can’t afford to repair or that has been stolen, when you have no way to get to work.

“The opportunity to provide more people with an affordable insurance option and prevent these situations from happening, learning as we go, is really exciting for us – it’s great progress towards helping people manage a significant financial risk.”

Suncorp NZ CEO Jimmy Higgins says in-depth research by Vero found cost was only part of the reason people opted to go without insurance.

“Our research showed that people’s values and background informed their view of risk, and many of the Good Shepherd NZ clients we spoke to felt that protecting a material possession like a car was less important than taking care of their family and community.

“But for some families a car is more than a possession, it’s a connection – to work, family, wellbeing, church, community.

“Our challenge is to find ways to ensure that those differences are not a barrier to New Zealanders accessing the help and support we are here to offer them if something goes wrong.”

Drive Car Insurance will be trialled for an initial 12-month period.

Suncorp previously teamed up with Good Shepherd in Australia to launch an affordable insurance range, Essentials by AAI.