South Australian motorists could save up to $114 a year on CTP insurance since the market opened to competition in July 2019. In fact, a typical Adelaide household with 1.8 vehicles could save up to $200 for the year. Changes to ratings districts will save some vehicle owners even more money.
Save on premiums
The independent CTP Regulator sets the possible range of CTP premiums for insurers. Currently, all four insurers – AAMI, Allianz, QBE and SGIC – are charging premiums at the lowest end of that range.
In the metro area, the 2019-20 premium is $296.77, a 28% saving of $114.48 on the previous year.
In SA, CTP premiums are based on vehicle type and whether it is garaged in District 1 or 2.
District 1 has a higher population, more CTP claims per 1,000 registered vehicles, and more expensive claims from at-fault vehicles.
Around 19,000 vehicle owners in District 1 are going to benefit from imminent changes to rating districts.
Ratings district changes
After 1 July 2020, some vehicle owners will move to District 1 and some will move to District 2. Remember the Independent Regulator, not the government, has made these changes.
District 1 to 2 – 19,000 vehicle owners will move to District 2, which will save $96 or 32% for passenger cars.
District 2 to 1 – 12,000 vehicle owners (Aldinga Beach, Sellicks Beach, Lewiston and Two Wells) will move to District 1, a $29 increase from 2018-19 for passenger cars.
With 993,000 vehicle owners in South Australia, only 1.2% will be negatively affected by these changes.