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The Great Compulsory Third Party Swindle?

Squil 21 November 2008 49

Having moved from NSW recently I felt the gross indignation that other Canberran’s have on learning that the NRMA exercises a monopoly on ACT CTP insurance. Having through no fault of my own been born a male in 1982, I am (despite a spotless 8 year driving record) demanded to pay the highest insurance premiums because of my age and penis.

Well I was planning on giving the finger to the man by keeping the car registered in NSW at an alternative address and getting the most competitive NSW CTP I could… until I did the sums.

For me, and my 1996 Mazda sedan I pay $608.35 for registration including CTPI in the ACT.

In NSW, an NRMA CTP Greenslip costs me $628.76 PLUS registration fee of $218 = $846.76

For comparison, a 50 year old driver with the same car and spotless driving record as myself pays $462.74 for their NSW CTP.

So I “save” $238.41 that the NRMA would otherwise have bent me over and removed.

So long live the monopoly! It seems the ACT monopoly that the NRMA enjoys also provides a benefit to those the insurance company views as “high risk”.

So finally, one piece of consolation and respite for a 26 year old male driver living in Canberra who feels there are no rewards for driving responsibly (I gave up on comprehensive insurance this year, putting my money where my mouth is, feeling that if the insurance companies wouldn’t gamble on my clean driving record for less than a ridiculous $1200 I’d take the risk).

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49 Responses to The Great Compulsory Third Party Swindle?
poptop poptop 10:35 am 27 Nov 08

So, we all on the same page vis-a-vis agreeance?

Excellent! =-D

tylersmayhem tylersmayhem 10:12 am 27 Nov 08

Just please don’t say you’re “in agreeance”. YUCK.

I am in full “agreeance” with you on that Ant 😛 I f**king hate that term. I think we will gain better “traction” I we were to not use that term 😉

ant ant 2:08 pm 26 Nov 08

Just please don’t say you’re “in agreeance”. YUCK.

tylersmayhem tylersmayhem 12:59 pm 26 Nov 08

…I…think so?! 😛

poptop poptop 10:54 am 26 Nov 08

Does this mean we’re agreeing again? =-/

tylersmayhem tylersmayhem 9:17 am 26 Nov 08

Tylers, yah – sorry about that.

No worries Poptop – cheers!

poptop poptop 8:49 am 26 Nov 08

Xbike & Squill, you may well be correct. Currently CTP is regulated by Government. Presumably open competition means government stepping back from controlling the price; so prices could well rise.

In my defence, the new CTP legislation only came in last month and I haven’t even read it! Who knows what evil lurks within?

Xbikee Xbikee 11:19 pm 25 Nov 08

Yes, POPTOP, it was well publicised a good while back that third party ins. will be open to the market “and save Canberrans much money” in that new competitive market. But if what Squil the poster of all this is right, we are cheaper now WITH the NRMA. In an open market such as NSW, will we still be? Oh, my car insured for $45k with QBE for $700 as I refused to pay the quoted price … they kept coming down until we both agreed 🙂 I am old though…

cranky cranky 8:59 pm 25 Nov 08

I have long felt the ACT Third Party Insurance scheme requires opening up to competition.

The comments above are a very clear message that attempts have probably been made to do just that, but the small market size has precluded competition. Hence the NRMA monopoly.

We are a city surrounded by NSW. Surely it is not beyond the whit of man to incorporate our CTP system into the NSW system, to the advantage of all. Larger pool for NSW insurers, serious competition for ACT motorists. ACT Gov to get the same kickbacks/taxes as the NSW Gov.

This scenario has to have been explored by Gov. What are the problems? Almost certainly a reduction in money to the ACT Gov! To the detriment of ACT motorists.
And certainly a change from flat charge per vehicle (based on weight) to an assesment of age, gender and driving history to establish the premium.

My best guess is that mature drivers would be about $100 PA better off.

lobster lobster 8:32 pm 25 Nov 08

When I used to work at NRMA about a decade ago. I remembered hearing that NRMA was the only company who put their hand up for CTP for ACT.
Because it is such a small area, it is a bad statistical spread or something.
Apparently they opened it up to other insurers a few years before and no one else jumped at the chance.

This was quite a while ago. So the details mightn’t be correct.
I might also have heard a 5th hand story and got non of the facts right whatsoever.

Hdopler Hdopler 1:16 pm 25 Nov 08

ant said :

Everyone knows that they should charge girls under 25 in Excels and Lancers double. And triple if they have frangipanis.

Very true.

poptop poptop 6:08 pm 24 Nov 08

Tylers, yah – sorry about that.

I needed to check with my usually unimpeachable source. I understand it is coming.

ant ant 4:36 pm 24 Nov 08

Everyone knows that they should charge girls under 25 in Excels and Lancers double. And triple if they have frangipanis.

Hdopler Hdopler 4:26 pm 24 Nov 08

Yup, this sucks. However, in the late 90’s in Melbourne it was reasonably well known and publicised that young women under 25, at least for a few years, were involved in more accidents – including high-repair value ones – than males, yet the insurance companies still charged men more as ‘Melbourne was a statistical anomaly’ and they had to ‘look at national trends’ yet down here if your suburb is ‘high risk’ your premiums are higher due to ‘local factors’

I guess it’s just a matter of the insurance companies picking and choosing the figures they like to justify the premiums they want to charge.

tylersmayhem tylersmayhem 4:14 pm 24 Nov 08

I’ve heard a rumour that the NRMA’s CTP monopoly in the ACT may be soon be over . . .

That’s what I suggested earlier – but didn’t hear anything?!

poptop poptop 2:13 pm 22 Nov 08

I’ve heard a rumour that the NRMA’s CTP monopoly in the ACT may be soon be over . . .

Very Busy Very Busy 10:17 am 22 Nov 08

A big advanatage with AAMI is that you can reduce your premium considerably by selecting a higher excess. I you consider yourself to be a very low risk of having an at fault accident this is a very good option.

For example our full comprehensive policy cost $242 for this year for an agreed value of $18,600 BUT the excess is $2100 if we have an “at fault” accident.

Primal Primal 12:10 am 22 Nov 08

bd84 said :

I actually found their price competitive with every other major insurer when I was shopping around for insurance for my new car about 2 months ago. Most of the insurers quoted a price within $100 of each other (around $1000 – being under 25), except for AAMI who I had been insured with for the past 5 or so years (no accidents), who wanted almost $500 more. You can safely say I am no longer a customer of AAMI.

Ouch. A couple of months back I compared NRMA, AAMI and …hmm, someone else!… for both myself and my folks and the difference between NRMA and the other two was about an extra $15/mth in both cases.

ant ant 11:18 pm 21 Nov 08

Well, monomania, some of us are giving back, by living outside the ACT but keeping our cars registered in teh ACT. It’s just more convenient, you send the dep’t some money, and a rego sticker turns up. I like that.

In NSW, you have to futz around getting colourful slips, and there’s this massive conflict of interest whereby the bloke checking your car stands to make money if he finds problems and won’t pass it until you buy something off him. Bugger that.

Genie Genie 10:23 pm 21 Nov 08

12 months ago I bought a brand new car, Shopped around for insurance… NRMA and AAMI were quoting me around $1200-$1500 for full comprehensive insurance.. Which I thought to be way too much. Rang GIO and almost had a heart attack when the guy quoted me a measley $650.

My insurance was up at the end of the month so I decided to do some shopping again as GIO has increased to about $800… NRMA and AAMI were still well into the 4 digits and would only insure my car for a max value of $20k. So I have decided to stick with GIO.

As for rego… cant complain too much about that. Can’t exactly get it anywhere else.

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