3 June 2010

Rising rego and CTP costs in ACT

| localmatt
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Hi all,

First time poster, i have just renewed rego for 12 months on a Ford Falcon and was astounded by the rising cost of rego but mainly the CTP cost which comes in at $487.50 for my car, compared to the $280 i recently paid for a 4×4 LCV in NSW i find this cost astronomical. NRMA has had a monopoly for far too long and they keep taking advantage of this, ACT has opened up the criterea for other insurers but none have joined. Sorry if this sounds like a rant, can anyone shed some light on this?

link to CTP cost: http://www.treasury.act.gov.au/compulsorytpi/NRMAInsuranceCTPPremiumsApril2010.pdf

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Got something in the mail recently about new insurers offering CTP in the ACT some time in July I think. But you’re right. I pay my rego in 3 month blocks, and was amazed at how much it went up in a short period (from $197 to $223). Surely the ACCC should be doing something about the monopoly NRMA has, or some govt figure would be looking at ways to bring the cost of rego down. Imagine how many votes you’d get if you could lower the rego costs by 10-20%…

Why is Canberra too small to have more than one CTP insurer but we have access to all insurance companies that offer comprehensive car insurance, home insurance etc etc?

WonderfulWorld10:53 pm 03 Jun 10

Bring on Mulley

Ill rent my residential mail box address just over the border for $25 per year….

Would my 2005 falcon qualify as a Veteran or Vintage??

In that link posted it lists the premiums for “private use” and “business use” of each vehicle type.

I would like to know how a police vehicle can have both private and business uses?

Does that mean I can have a private police car? So at least vigilante groups can be covered by CTP insurance!

the reason ACT might be more expensive than NSW is that in NSW, if you are injured in a car crash that is not your fault (up to and including injuries caused by drunken unlicenced speeding bogan drivers on mobile phones drinking VBs with hibiscus stickers on their back window going thru red lights to intentionally wipe out a cyclist) you receive bugger all compensation – you get (in a general sense) your out of pocket expenses paid but not much by way of lost salary or compensation for possibly severely affecting the rest of your life (unless you are quite badly injured)

In NSW there are threshold levels of injury before you get much money. The (in)famous Jack Pappas once offered to break the arm of a pollie (the ACT AG at the time, but I cant remember who it was) and pay that pollie the level of compensation he would receive under the mooted threshold system. It wasn’t taken up (not the least because the level of compensation would be $0).

In the ACT, on the other hand, there is no limitation. Yes, some of the awards for minor injuries are arguably on the high side and that is a factor. And rarely does money compensate for more severe injuries.

So pick your poison – save some money now and hope you never get injured (NSW regime) or pay extra and get better benefits (but hope you never get injured)(ACT regime)

No fault schemes aren’t the answer to this question. Either they pay out more (thus more expensive) because they pay both the negligent and innocent parties at the current level; or they reduce the amount people receive and the premium is the same as now. You do reduce legal fees, but that is not as big an impost as many believe. No fault schemes may be the answer to other questions, however.

@gungahlin Al – NRMA Motoring and Services (with the useless Alan Evans aboard)is a separate entity to “NRMA Insurance” – which is a trading name of Insurance Australia Group. IAG decisions about insurance have absolutely zero to do with NRMA Motoring and services.

The reality is that IAG is actually doing us a favour – the ACT pool is to small to support a TPI insurer, let alone 2 or 3 – and is also providing the ACT Government with “Nominal Insurer” services (that is last resort coverage for people injured by uninsured drivers). So yes its expensive, but there are legitimate reasons for it.

troll-sniffer2:45 pm 03 Jun 10

The price you pay is a consequence of a goodly number of your fellow citizens jumping boganistically onto the gravy train peddled by bottom dwelling lawyer scum. A properly configured no-fault scheme could well halve the third party premiums currently extracted from your wallets come reog time, but then bogans wouldn’t have the chance to participate in the post prang lottery.

Best way to ensure you get value for your lottery ticket is to have a prang, get headaches, nausea and an ill-defined but debilitating back complaint. I know there are many residents of this great city who can attest to the financial rewards that await the canny investor.

I just did a quick comparison on my car (2007 VW Polo GTI) and it would cost ~$515 (I think the variance between the three websites I checked was about $4) to get CTP in NSW, rather than $487 in the ACT. I’m 28 and haven’t had any accidents in the last decade.

When I moved to the ACT in 2005 the CTP on my 1990 Ford Laser was also $50 cheaper in the ACT than it was in NSW.

So clearly there are many people in the ACT who get a better deal under the current arrangements.

Gungahlin Al1:37 pm 03 Jun 10

Yep – the NRMA just SO looks after us here in Canberra…NOT!
And although there are supposed to be alternatives now to give them competition, they are still it. And as a result, they continue to milk us for every $.
Alan Evans has done nothing for us in this respect. In my opinion.

So why do NRMA members keep voting him in to the NRMA Board?

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