South Australian motorists are driving a hard bargain when it comes to renewing their car registration, saving more than $80 million collectively on their CTP insurance premiums in the past 8 months since the market opened to full competition.
Since July, when South Australians have been able to choose their own CTP insurer (either AAMI, Allianz, QBE or SGIC) who compete on service, price and other policy holder incentives, local motorists have saved up to $114 a year on their CTP insurance for a private passenger vehicle.
This equates to a potential saving of up to $200 for a typical Adelaide household with 1.8 vehicles.
“This is a huge victory for consumers who are now able to drive their dollar even further when it comes to renewing their car rego,” said Treasurer Lucas.
Currently, all four insurers have set their premiums for private passenger vehicles at the lowest end of the range set by the independent CTP Regulator. For example, for the metropolitan area the 2019-20 premium of $296.77 is a saving of $114.48, or 28 per cent reduction, on the 2018-19 premium.
Meanwhile, the independent Regulator has today published changes to the CTP insurance rating district boundary – relating to the location in which a vehicle is garaged – which will affect approximately 31,000 of the state’s 993,000 motor vehicle owners (44,000 of 1.5 million individual vehicles).
To come into effect from July this year, approximately 19,000 motor vehicle owners (28,000 vehicles) will move from District 1 (representing higher populated areas and higher claim frequency) to District 2 (less populated and lower claim frequency). Using the lowest annual premium offered today as an indication, this means a premium reduction of $96 or 32% for owners of private passenger vehicles.
So, in just two years, these motorists will save a total of $210 on their CTP insurance.
Different vehicle classes, including public passenger and goods carrying vehicles, will have varying degrees of premium change.
These motorists are largely located in the Adelaide Hills, including Aldgate, Lobethal and Oakbank.
A further 12,000 motor vehicle owners (16,000 vehicles) in four suburbs (Aldinga Beach, Sellicks Beach, Lewiston and Two Wells) will move from District 2 to District 1, reflecting their higher population, greater claim frequency and also bringing them in line with 136 suburbs that meet the same criteria and are already in District 1.
“While this is a decision taken by the independent Regulator based on claims and vehicle garaging data, the vast majority of motor vehicle owners will be better off as a result of the changes,” said Mr Lucas.
“And of those currently in District 2 moving into District 1, I’m advised these motorists had been paying $267.50 in 2018-19, which then reduced to as low as $201.03 this year under the full competition model. The boundary changes, to come into effect in July, will take them to $296.77.”
For more details on the district boundary change:
Decisions relating to the CTP Insurance District Boundary are taken wholly by the Independent Regulator and are not decisions made by the Government.
The Independent Regulator was given these powers by legislation passed by the former Labor government in 2016.
Final premiums are subject to the CTP Regulator’s determination of the upper and lower premium limits for each vehicle class and insurers’ chosen premiums within those parameters.