CTP insurance in Canberra to fall from March due to extra competition
Compulsory third party (CTP) premiums for Canberra vehicles will fall from March 1, according to the ACT insurance price watchdog.
The ACT CTP Insurance Regulator announced that GIO Insurance premiums would fall by $24 to $568, making it the cheapest in the ACT.
AAMI and Apia premiums were also expected to decrease.
AAMI's family car premium is expected to fall by $8.20 to $590 and APIA's premium by $1.20 to $595.
CTP Insurance Regulator representative Karen Doran said extra competition in the market had put downward pressure on premiums.
"These new premiums show that competition is offering real choice and benefits to consumers," Ms Doran said.
Licensed insurers are required to charge premiums that fully fund their present and future liabilities under the CTP legislation, but which are not excessive.
"Based on independent actuarial advice, I am satisfied that the new premiums for GIO, AAMI and Apia are each soundly based and are not excessive having regard to their respective circumstances," Ms Doran said.
In 2013 the ACT Government made changes to allow three other companies to offer CTP insurance to drivers and operators Apia, GIO and AAMI entered the market.
Until then NRMA has been the sole insurance company offering CTP cover in the ACT for more than 20 years.
In November last year, NRMA increased its CTP insurance rate by 1.8 per cent, the company's first increase since September 2012.
Insurance providers usually applied to vary their rates on an annual basis.
