The State Government has welcomed the move by private insurer, QBE, to reduce its CTP insurance premiums offered to private passenger vehicles and all goods carrying light vehicles, such as utes, to the lowest rate possible under full-competition.
QBE’s new CTP rate of $296.77 for a private passenger vehicle in metropolitan Adelaide and the Hills (premium class 1) – to come into effect from July 31 – cuts $68 off its previously published rate of $364.75 and matches the pricing of competitor Allianz.
It has also matched Allianz by reducing its rate for private passenger vehicles in regional SA (District 2) to $201.03 (down $43.26), and goods carrying light vehicles in the metropolitan area/Hills and regional SA (used for business) to $359.92 and $225.22, respectively.
Treasurer Rob Lucas said the move was a ‘win for consumers’, who will save up to $114 a year on their CTP insurance premiums when the market opens to full competition on July 1, driving down the cost of renewing a motor vehicle’s registration.
For a typical Adelaide household with 1.8 vehicles, this represents a saving of approximately $200 per household.
“This is fantastic news for motorists who, quite clearly, are reaping the rewards of a new competitive market where insurers can compete on price, as well as service and other soon to be released policy holder benefits.
“In less than a fortnight, we’ve seen one insurer drop its CTP premium rate from the highest permissible within parameters set by the independent Regulator to the lowest.
“Ultimately, this represents significant savings for an average Adelaide household of up to $200 a year.”
Under this new competition model, insurers can adjust their prices in any direction at any time within premium bands set annually by the independent Regulator. The new prices can only be implemented after a period of two months.