Reduced car insurance bill to lighten load

Savings: Motor vehicle owners will see a reduction in third party insurance costs when they receive their next registration renewal.
Savings: Motor vehicle owners will see a reduction in third party insurance costs when they receive their next registration renewal.

Passenger vehicle owners are set to make some good savings on their Compulsory Third Party (CTP) insurance as of July 1, according to South Australian Treasurer Rob Lucas.

Mr Lucas said up to $114 a year could be saved by motorists which will be reflected in the costs when renewing motor vehicle registrations.

"Cars registered in regional SA - under premium class 51 - will attract premiums of between $201.03 and $244.29 depending on the insurer, representing a saving of up to $66.47," he said.

Other classes of vehicles which will incur a saving include motorcycles and light goods carriers.

CTP premiums will be offered by private insurers QBE, AAMI, SGIC and Allianz, which have been government-approved.

Since 2016, CTP policies have been allocated to approved insurers with customers given the option to change to their own preferred insurer.

From July 1, motorists will be allocated the lowest available premium for the vehicle class irrespective of their allocated insurer. Prices can be adjusted at any time but there is a two-month period before implementation.

Mr Lucas said consumers had been slugged by the former Labor government with CTP increases of about 3 per cent per year as part of maximising returns of their MAC privatisation.

Shadow Minister Lee Odenwalder said the government was claiming credit for a decision of private insurers to reduce CTP costs, a decision of which it had no input.

"At the same time this week the Marshall Government announced a $130 million cash grab from South Australians by increasing car registration, licence registration and even hospital car parking by up to 25 per cent ... (it) has broken its promise to deliver lower costs," he said.

Vehicle owners will be supplied information on the scheme and how to choose an insurer with their next registration renewal.

For more information visit YourChoice.sa.gov.au

This story Reduced car insurance bill to lighten load first appeared on The Murray Valley Standard.