14 July 2013

Will anyone tick the box for more expensive CTP?

| johnboy
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Andrew Barr has announced the long awaited start of choice for Compulsory Third Party Insurance when registering cars:

Last month Chief Minister Katy Gallagher and I announced that three insurers: AAMI, GIO and Apia (the Australian Pensioners Insurance Agency) had been granted licences to offer CTP insurance to ACT motorists.

These three insurers are offering CTP premiums to motorists from today.

It is the first time since 1979 that Territory motorists have a choice of CTP provider – until today there was only one provider of CTP insurance.

Motor vehicle registration renewal notices will now include information about the range of CTP providers.

Having a choice of CTP providers is great news for Canberra motorists.

Competition also offers greater opportunities for innovative insurance products, more investment and employment in the ACT, and new thinking about how people injured in a motor vehicle accident might be rehabilitated and returned to health.

The new insurers to the market have developed a reputation in other jurisdictions for providing injured people with more direct pathways to rehabilitation. This sits well with the Government’s reform agenda.

For some reason a Simpsons classic springs to mind.

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khepri said :

wildturkeycanoe said :

milkman said :

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Can’t see how a 600cc motorcycle can do more damage to “someone else” than a 250cc. Both can achieve speeds above the limit, both could weigh the same and have similar horsepower figures. Ridiculous insurance rip-off.

As for the CTP new system farce, I am not surprised. Just watch while they “compete” against each other with 4-10% increases in premiums over the next few years.

Ah, points well made milkman and wildturkeycanoe. Yes I’m pretty confident the difference in damage done by my old 250 or the 650 i’ve moved too would be pretty comparable, certainly not 450% different thats for sure.

I reckon it’s probably based more on statistics of previous cases. It means that if you’re driving a 650 you’re statistically going to cause 450% more damage than if you owned a 250 (not because the 650 is more dangerous, but because 650 owners are more dangerous).

Hatter64 said :

Of course the $64,000 question is “Why has there been only one CTP provider in the ACT since 1979?”.

Because all of the other insurers pulled out of the ACT market by 1979 leaving only the NRMA and none of the other insurers thought it worthwhile to come back until now.

You can wire my $64 000 to…….

Of course the $64,000 question is “Why has there been only one CTP provider in the ACT since 1979?”. One would assume that if it were as a result of ACT Government corruption or bribery (and I’m not suggesting it is) then the remaining insurers would have complained bitterly about unfair trading. Presumably they either didn’t feel it was unfair that they were excluded. It would be good to get some response from the new CTP providers as to the history of the CTP monopoly in the ACT.

wildturkeycanoe said :

milkman said :

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Can’t see how a 600cc motorcycle can do more damage to “someone else” than a 250cc. Both can achieve speeds above the limit, both could weigh the same and have similar horsepower figures. Ridiculous insurance rip-off.

As for the CTP new system farce, I am not surprised. Just watch while they “compete” against each other with 4-10% increases in premiums over the next few years.

Ah, points well made milkman and wildturkeycanoe. Yes I’m pretty confident the difference in damage done by my old 250 or the 650 i’ve moved too would be pretty comparable, certainly not 450% different thats for sure.

RegoACT seem to be keeping the new competition policy secret. I received my renewal form in the mail and only NRMA was shown as CTPI provider. I went online to pay and you could only access the other providers by a discreet drop down list. No prices for the other insurers were given. I stuck with the NRMA.

hk0reduck said :

Everyone realizes that AAMI, GIO & APIA are all owned by the same company, don’t they?

https://en.wikipedia.org/wiki/Suncorp_Group

I’m sure they going to compete so hard against each other!

And yet whilst trying to find out how to partake in these once in 24 year savings – eventually found out on the rego website. I called Suncorp who were happy to give me a CTP quote of $327.60. Why or how can they give a quote and then not be able to provide it (even though they are the underwriters) and that the rego site wont let me buy just rego without CTP if i can (cant) contact other providers on my own. as said by KG – we can shop around to get the best deals?

This is rigged!

plus if i renewed yesterday and went with NRMA (the cheapest i found out today anyway) I would have saved $1

wildturkeycanoe said :

I love how the competitors are all $5-$20 more than NRMA and now we also have to pay a $1.00 fee for a “regulator” to oversee the new scheme. Rip-off.

Slightly off-topic, but I am glad that QBE is not one of the new CTP entrants. They are (were) my comprehensive insurers, and have been utter, utter, utter f#$@& bastards. Quite happy to take the premiums but are shitty weasels when it comes to meeting their end of the bargain.

So, low premiums are only part of the story. It is how they treat you when you unfortunately come to make a claim that is the acid test.

QBE ARE MONGRELS OF THE HIGHEST ORDER (apologies for the shouting).

wildturkeycanoe, I have engaged one of the local ambo-chasing law firms, so not much contact with the CTP insurer (NRMA). However, the contact so far has been pretty good.

Had a useless phone call from their call centre early on, but later contacted by their Injury Management Advisor. He is a Registered Nurse, which made things much easier (knew what I was talking about, and as I said to him, I couldn’t bullshit him either). Had a visit yesterday for an assessment by a guy who is also a physio, so again was very useful.

The real fun and games will start when the compo claim will be negotiated (maybe 2 years away) and that will be up to the lawyers to sort out. In the meantime, I’m just keeping records of everything.

Went and did one of my renewals today. The girl behind the counter basically said NRMA is still the cheapest straight off the bat and so did the girl serving at the next window. Don think any of it will make any difference.

KB1971 said :

melon1234 said :

What has the federal government Department of Infrastructure and Transport (formerly DOTARS) got to do with it?

DOTARs, DOT, TMR, whatever you want to call Queensland Transport these days. They change their name often enough.

wildturkeycanoe4:49 pm 16 Jul 13

54-11 said :

dtc said :

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

Exactly. I’m sitting at home now with a badly busted leg and associated injuries because someone “didn’t see me”, with at least 12 months, maybe 2 years recovery time, to be followed by a total knee replacement and maybe hip replacement in the future. May never work again. I’m glad I’m in the ACT.

Sorry to hear about that, I hope you are being looked after. I’m also off work at the moment due to work injury and the insurance company hasn’t been totally inept in paying the bills. What are third party motor incidents like if you don’t mind me asking? I’m expecting you to describe it to be a horrible ordeal you just wouldn’t want to go through, and that is just the politics/paperwork side of it, not the physical pain.

dtc said :

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

Exactly. I’m sitting at home now with a badly busted leg and associated injuries because someone “didn’t see me”, with at least 12 months, maybe 2 years recovery time, to be followed by a total knee replacement and maybe hip replacement in the future. May never work again. I’m glad I’m in the ACT.

Tetranitrate10:45 am 16 Jul 13

thebrownstreak69 said :

As a New South Welshman, I have to laugh a bit when I see this. The cost of third party personel insurance in the ACT is a direct result of ACT laws. Change the laws, solve the problem, if that’s what you really want…

Oh I’m sure that’s the cause of the difference, but I wouldn’t want to bet on premiums falling to NSW levels if the law was to be changed.

JC said :

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

Until someone elses stupidity causes you to miss a month of work with a broken leg and permanent limp and knee pain. Then we will see what you think about the difference betwee ACT and NSW compo laws.

Everyone realizes that AAMI, GIO & APIA are all owned by the same company, don’t they?

https://en.wikipedia.org/wiki/Suncorp_Group

I’m sure they going to compete so hard against each other!

cranky said :

Am I getting this straight?

The ACT Gov has set a minimum price that these companies have to charge? And yet they expect the price to come down by introducing new competitors?

Yeap, and they set a maximum. The premiums can’t be set at a level that’s too low otherwise they will not fully fund the insurer’s liabilities, or too high as that’s gouging. They’re free to trade within these bounds, which is what you’d want them to do anyway.

thebrownstreak698:23 am 16 Jul 13

If I were living in Canberra I’d happily pay double if it meant not having to see the ads for Blumers, especially that poor kid…

thebrownstreak69 said :

As a New South Welshman, I have to laugh a bit when I see this. The cost of third party personel insurance in the ACT is a direct result of ACT laws. Change the laws, solve the problem, if that’s what you really want…

100% spot on! However it is a bit hard to change the laws when the largest injury lawyers are making large political donations, and of course changing those laws means people get lower payouts if injured, something that this board in particular doesn’t seem to like the idea of. But those same people are also happy to whine about how high the cost of CTP is and how the insurance companies are ripping us of.

wildturkeycanoe6:59 am 16 Jul 13

I love hoe the competitors are all $5-$20 more than NRMA and now we also have to pay a $1.00 fee for a “regulator” to oversee the new scheme. Rip-off.

Am I getting this straight?

The ACT Gov has set a minimum price that these companies have to charge? And yet they expect the price to come down by introducing new competitors?

thebrownstreak69 said :

As a New South Welshman, I have to laugh a bit when I see this. The cost of third party personel insurance in the ACT is a direct result of ACT laws. Change the laws, solve the problem, if that’s what you really want…

And this is the crux. The only positive of our Labor Gov has been to attempt to wind back the compensation paid out. Both the wretched Libs (Smyth) and the Greens have decided to back the high donating Blumers and their mates to retain the legal industry money trough that is the current scheme.

ACT motorists deserve a far better deal. We should not be cash cows for the Blumers of this world.

wildturkeycanoe7:44 pm 15 Jul 13

milkman said :

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Can’t see how a 600cc motorcycle can do more damage to “someone else” than a 250cc. Both can achieve speeds above the limit, both could weigh the same and have similar horsepower figures. Ridiculous insurance rip-off.

As for the CTP new system farce, I am not surprised. Just watch while they “compete” against each other with 4-10% increases in premiums over the next few years.

khepri said :

Does this mean I’m 4.5 times more likely to wipe myself out?

No, it means you’re more likely to wipe someone else out. This insurance dcoesn’t cover you.

Checked my motorbike renewal today and surprise surprise NRMA was the cheapest. The cheapest total is a whopping $621.50 (of which CTPI was $521.30) So much for competition. Also find it interesting the the CTPI increases by around 450% if you go from riding a 250cc to anything over 300cc. Does this mean I’m 4.5 times more likely to wipe myself out?

melon1234 said :

You have to log onto the DOTARs website, pretend you’re making changes and select each different provider to find out what the price differences are. Hardly worth the time and effort, when knowing they all set the same price.

What has the federal government Department of Infrastructure and Transport (formerly DOTARS) got to do with it?

watto23 said :

They’d have lost my mobile, except Optus have upset me more.

It is getting harder and harder for me to pick a company for my mobile telephony services. It is a case of weighing up how much I hate a company against how well I know their particular brand of devil.

thebrownstreak6912:58 pm 15 Jul 13

As a New South Welshman, I have to laugh a bit when I see this. The cost of third party personel insurance in the ACT is a direct result of ACT laws. Change the laws, solve the problem, if that’s what you really want…

I’m personally sick of underhanded tactics like this bundling to try and make higher prices acceptable, and then removing the discount. I’ll be ticking the cheapest box.

HiddenDragon said :

watto23 said :

Felix the Cat said :

My car is due for rego so I checked the ACT rego website and found out that NRMA is actually the cheapest CTPI for my car! $578.20 vs $590.20 (GIO) vs $598.20 (AAMI)

Same for me. what a farce this is. My car insurance is with AAMI. I wonder if i get a dicsount on it if i have CTP with them… thats about the only way i can see one saving money…

Perhaps, but insurance companies seem to be quite adept at making any savings from bundling disappear within a year or two. Perhaps, in time, our insurance triopoly will follow the lead of Coles and Woollies and offer petrol vouchers/cards as an incentive.

Agree, bundling in general is rarely beneficial for too long. Sometimes though my sanity takes a hit everytime i get a hard sell from banks and telcos in particular about bundling. Although telstra cancelled the old 10% discount bundle on me and promptly lost my foxtel and home phone business. They’d have lost my mobile, except Optus have upset me more.

HiddenDragon11:39 am 15 Jul 13

watto23 said :

Felix the Cat said :

My car is due for rego so I checked the ACT rego website and found out that NRMA is actually the cheapest CTPI for my car! $578.20 vs $590.20 (GIO) vs $598.20 (AAMI)

Same for me. what a farce this is. My car insurance is with AAMI. I wonder if i get a dicsount on it if i have CTP with them… thats about the only way i can see one saving money…

Perhaps, but insurance companies seem to be quite adept at making any savings from bundling disappear within a year or two. Perhaps, in time, our insurance triopoly will follow the lead of Coles and Woollies and offer petrol vouchers/cards as an incentive.

NRMA actually HAVE dropped their price – from $578.70 in September 2012 to just $578.20 in May 2013!

Seriously though, CTP has risen by 40% over the last four years – if that trend continued we’d all be up for around $610.

Erg0 said :

…GIO, who’ll apparently give you $50 off…

Looking at their website that’s $50 off comprehensive when you have CTP with them as well.

davo101 said :

I’m assuming that because the CTP is paid via the ACT Government the new companies can’t set different premiums based on your risk profile.

That’s pretty much what I heard this morning on 666 radio – they said the price is set but that the individual insurers can compete on some sort of value adding in the package they offer.

when they announced more choices in CTP insurers i was hoping for big savings. how very disappointing.

Felix the Cat said :

My car is due for rego so I checked the ACT rego website and found out that NRMA is actually the cheapest CTPI for my car! $578.20 vs $590.20 (GIO) vs $598.20 (AAMI)

Same for me. what a farce this is. My car insurance is with AAMI. I wonder if i get a dicsount on it if i have CTP with them… thats about the only way i can see one saving money…

Felix the Cat said :

My car is due for rego so I checked the ACT rego website and found out that NRMA is actually the cheapest CTPI for my car! $578.20 vs $590.20 (GIO) vs $598.20 (AAMI)

You need to check with the insurer to find out if you are eligible for a cash back.

I’m assuming that because the CTP is paid via the ACT Government the new companies can’t set different premiums based on your risk profile.

It will be interesting to see how long it takes for people to cotton on to the farce it is.

Qld introduced multiple CTP insurers, and unsurprisingly, they all set identical CTP prices. If you’re lucky one year, one provider will be cheaper – by about 3 cents.

Of course, those prices aren’t listed on your registration renewal paperwork. You have to log onto the DOTARs website, pretend you’re making changes and select each different provider to find out what the price differences are. Hardly worth the time and effort, when knowing they all set the same price.

Happy to be pleasantly surprised and shown the opposite occurring though.

Heard an ad on the radio this morning for GIO, who’ll apparently give you $50 off if you’re a safe driver (no accidents in 2 years, I think). No idea what their starting price is, though.

Felix the Cat7:58 am 15 Jul 13

My car is due for rego so I checked the ACT rego website and found out that NRMA is actually the cheapest CTPI for my car! $578.20 vs $590.20 (GIO) vs $598.20 (AAMI)

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