Will anyone tick the box for more expensive CTP?

johnboy 14 July 2013 37

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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37 Responses to Will anyone tick the box for more expensive CTP?
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Felix the Cat Felix the Cat 7:58 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)

Erg0 Erg0 8:51 am 15 Jul 13

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.

melon1234 melon1234 9:04 am 15 Jul 13

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.

davo101 davo101 9:38 am 15 Jul 13

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.

watto23 watto23 9:44 am 15 Jul 13

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…

montana montana 9:49 am 15 Jul 13

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

SheepGroper SheepGroper 11:13 am 15 Jul 13

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.

niftydog niftydog 11:36 am 15 Jul 13

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.

HiddenDragon HiddenDragon 11:39 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.

watto23 watto23 11:59 am 15 Jul 13

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.

dkNigs dkNigs 12:35 pm 15 Jul 13

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.

thebrownstreak69 thebrownstreak69 12:58 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…

p1 p1 1:06 pm 15 Jul 13

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.

KB1971 KB1971 1:17 pm 15 Jul 13

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?

khepri khepri 5:28 pm 15 Jul 13

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?

milkman milkman 6:24 pm 15 Jul 13

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.

wildturkeycanoe wildturkeycanoe 7:44 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.

cranky cranky 8:47 pm 15 Jul 13

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.

wildturkeycanoe wildturkeycanoe 6:59 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.

JC JC 7:20 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…

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.

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