CTP going up from 16 August.

helium said :

Also how about enforcing the rules about having a ACT rego if you reside here. So many interstate plates in my suburb, some have been here 7+ years.

We save $600/year, thats $50/month on having on of our commercial vehicles registered to our QLD office address. If I get the chance to drive the other one up there I’ll get a roadworthy and transfer it to QLD also. If the difference weren’t so substantial it wouldn’t be worth it.

OP: The ACT Treasury has announced …

That should read ‘ACT Treasury has announced that NRMA has increased their priced by 8%” to show that the price rise is due to a private firm, not the government jacking prices up again.

Classified said :

Jivrashia said :

When is some goddamn competition going to be introduced into the ACT’s CTP insurance market??

Probably when insurers don’t have to accept unlimited liability. The one insurer that is here gets paid for that risk.

The situation is more complex than most understand. It’s certainly not a case of insurers not wanting to sell CTP in the ACT.

CTP insurance is one of the riskiest to underwrite. Claims are usually large, and take years to settle, meaning the cost of those claims is exposed to normal inflation, and judiciary inflation (ie a judge decides to award more and sets a precedent for all other claims). As a result insurers need to keep massive amounts of money locked away in low risk, low yield securities for years (as governed by the likes of APRA), so you need to have pricing estimations pretty accurate or you lose a lot of money.

New players coming into the ACT have a combination of limited information to establish a prudent price, and an almost impossible task in predicting where claims costs will go. Given you need millions of dollars sitting in the bank before you even sell your first policy it’s a high risk, high cost venture.

According to the MTAA green slip calculator website (which compares green slip costs across the 7 NSW CTP insurers), the CTP cost for a green slip in NSW for a 2005 model car garaged in Qbyn (or Ulladulla) driven by a 40 yr old driver with no accidents and max no claim bonus on comprehensive insurance, but 2 demerit points, ranges from $360 pa to $525 (however, the cheapest insurer is the one that I pretended to have comprehensive insurance with, so pogtentially a ‘bundle’ discount).

Without comprehensive insurance the cost is $393 – $525

For a 25 year old Qbyn driver the CTP premium is $526 – $529

So if the ACT premium is going to be around $520, then there isnt any difference for younger drivers and about $120 pa for older drivers.

helium said :

Also how about enforcing the rules about having a ACT rego if you reside here. So many interstate plates in my suburb, some have been here 7+ years.

The more the price of CTP increases, the more people will go out of their way to avoid paying ACT rego. Behold the glory of the Laffer Curve.

Any analyst who actually believes CPI is running at 3% or thereabouts is f***ing delusional.

Time to start locking in 5%-7% pay increases for 3 years compounded or everyone is going to end up poorer.

The Frots said :

A rise of 8%………? Dear God, when does this stop.

Perhaps when someone from Canberra runs against and boots out NRMA’s ACT/Monaro board director Alan Evans because he has just stood by and allowed NRMA to gouge us for all they can (or more likely been actively involved in it when he was chairman)??

Well TPI for my car yesterday was $487.50. so i’m guessing it will be $526.50 now.

Over the last 12 months my car insurance was ~$90 more as well.

TPI for my car is not much less than my comprehensive policy. At least the bill tells me whos charging what to make up the rego fee.

what_the said :

johnboy said :

time_killer said :

Does anyone know how NRMA was allowed to get the CTP monopoly in the first place?

No other insurer wants to touch this market.

Seeing how Canberrans drive I cant blame them!!

Correct me if I’m wrong. If no other insurer wants to touch this market with CPT, then how come they’re jumping over each other for a bite of the Vehicle insurance.

johnboy said :

time_killer said :

Does anyone know how NRMA was allowed to get the CTP monopoly in the first place?

No other insurer wants to touch this market.

Seeing how Canberrans drive I cant blame them!!