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7 Common Mistakes That Can Increase CTP Insurance Rates

Trying to get the cheapest CTP insurance rate possible? While there may not be much you can do to change your CTP insurance quote today, there are several mistakes you can avoid making to ensure your rates don’t go up in the future. 


7 Common Mistakes That Increase CTP Insurance


How CTP Insurance Quotes Are Calculated


For the most part, CTP insurance in NSW is calculated based on unchangeable factors. Providers follow a strict set of parameters that include everything from your age to the vehicle you drive, your driver history, and the number of claims you have made in the past. This allows them to estimate your driving ability, charging you more if they believe you’re likely to make a claim.


Just because these factors are set in stone right now, doesn’t mean they always will be. There are several key things you can avoid to keep your rates low and decrease them over time. This can make a big difference to your overall CTP rate, setting you up to have and maintain lower rates in the future.


7 Mistakes That Can Impact Your CTP Insurance Rate


Getting Demerit Points


One of the biggest mistakes to avoid if you want to keep your CTP insurance quote low is racking up demerit points. This is one of the key factors that insurance providers will look at to determine your CTP quote. You can accumulate demerit points for a wide range of driving infringements, from parking illegally to speeding, using your phone while driving, or not wearing your seatbelt.


If you already have a few demerit points, it’s worth comparing greenslip quotes from different providers. Some insurance providers will add more to your quote for each demerit you have, while others add an extra charge that is the same for somebody with 1 point as it is for somebody with 12 points. Compare leading providers to ensure you have the best rate.


Being At Fault In A Road Accident


When you apply for a greenslip quote, you’ll need to disclose whether you have been at fault in a road accident within the last three to five years. If you have, this will bump up the price of your CTP insurance in NSW


The reason for this is that prior prangs and accidents can indicate a pattern of behaviour, suggesting to providers that you’re a higher-risk driver who is more likely to make a claim than low-risk drivers. The fewer accidents you get into, the cheaper your CTP insurance quote will be.


Having Your License Suspended


If your license is suspended, restricted, cancelled, or disqualified, this will likely impact your CTP rate. This is especially true if this was the result of driving under the influence, whether for drugs or alcohol. 


You can avoid these mistakes by driving carefully, following the road rules, never driving under the influence, and ensuring that your license never lapses without renewal.


Making Unnecessary Motor Insurance Claims


If you are involved in a minor road accident, it could be beneficial to avoid making a claim. The more claims you make, whether you were at fault or not, the more your CTP rates could potentially rise. It can be worthwhile to avoid making claims over small prangs to keep your claims low. 


Driving An Older Or Unsafe Vehicle


Your vehicle itself is a determining factor when it comes to your CTP insurance rate. Providers tend to charge less to those who drive newer vehicles with safety features. As older vehicles can be unpredictable and in some ways unsafe, they can attract higher rates for those reasons alone. If you’re considering upgrading your vehicle, you may notice your CTP quote goes down as a result. 


Hold No Other Motor Insurance


Holding other motor insurance on your vehicle can indicate a commitment to driver safety. It can also strengthen your claims history if you haven’t made any claims on that other policy. You can also receive discounts on other types of motor insurance if you purchase them alongside CTP.


Registering Your Vehicle At The Wrong Address


When you get CTP insurance, you will need to disclose the garaging address of your vehicle. This address should be the NSW street address where your car is most often parked. If you have a choice of where you primarily park your vehicle, it can reduce your CTP rate to register in a cheaper rating region outside of metro areas.


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Discover how your quotes for CTP insurance compare between leading providers now. Use our Greenslip Calculator to compare and purchase your CTP. 

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Just a friendly reminder before you start….


Before you enter into an insurance contract, you have a duty to tell the insurer anything that you know, or could reasonably be expected to know, that may affect the insurer's decision to insure you and on what terms. You have this duty until the insurer agrees to insure you. You have the same duty before you renew, extend, vary, or reinstate an insurance contract.

For Personal, Domestic and Household insurance contracts, you have an additional duty to take reasonable care not to make a misrepresentation to the insurer. To ensure you meet your duty, your responses to the insurer's questions must be truthful, accurate and complete.


If you do not tell the insurer anything you are required to, they may cancel your contract, or reduce the amount they will pay you if you make a claim, or both. If your failure to tell the insurer is fraudulent, they may refuse to pay a claim and treat the contract as if it never existed.

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