News - Transport

The Chief Minister has made a big announcement that the maximum that can be charged for compulsory third party insurance premiums - that unavoidable chunk of your annual car registration cost - will fall ...
... by a whopping $10.35 a year!

Are you underwhelmed? Yeah - so were we.

There is a very simple reality to car registration costs in Canberra - they are way too high.

And the inescapable cause of that is that the NRMA has a monopoly on providing Compulsory Third Party insurance in the ACT - a monopoly they clearly intend to milk for every cent they can extract from it.

That the NRMA treats ACT members and car owners with such disdain is inexcusable. That the ACT Government allows it to happen is doubly so.

The Chief Minister's media release follows.

ACT Government Media Release 17 September 2007

COMPULSORY THIRD-PARTY PREMIUMS FALL

Compulsory third-party insurance premiums for most Canberrans will fall from November 1, after the Chief Minister this week signed a regulation to give effect to a new rates regime.

The Road Transport (Third-Party Insurance) Amendment Regulation 2007 revises down the maximum premium insurers can charge.

It will result in a reduction in the premium paid for an average private motor vehicle of $10.35.

Chief Minister Jon Stanhope said he was pleased that the Government's focus on road safety had enabled the downward revision of premiums for compulsory third party insurance for the overwhelming majority of Canberra motorists.

The signing of the regulation comes on top of the Government's recent announcement of a complete overhaul of the compulsory third-party insurance system.

Legislation is being drafted that will streamline the scheme and bring about cost savings that should flow through to further reductions in premiums, without diminishing the compensation available for negligently injured Canberrans. The legislation will also remove barriers to competition.

It is proposed to introduce the legislation during the spring sittings of the Legislative Assembly.

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