In Australia, you need Compulsory Third Party or CTP insurance before you register your vehicle. This must be purchased in order to register every motor vehicle in New South Wales. This insurance, also known as Greenslip, will cover the people injured or killed in a motor vehicle accident.
It is important to clarify that Greenslips don’t cover damage to property or other vehicles. Whilst all greenslips have the same level of CTP coverage, not all of them are the same price. When shopping around for licensed insurers prices, it’s common to be asked for your motor vehicle and personal details to issue a tailored quote. Why is that?
There are some factors that affect CTP prices. Private insurers have their own price, as guided by New South Wales law. The State Insurance Regulatory Authority (SIRA) regulates all insurers to ensure that these rules are followed. Hence, this entity is in charge of overseeing motor accidents and CTP insurance.
How is the CTP insurance price set for each motor vehicle?
When setting CTP insurance prices, factors are based upon estimating how much premium the insurer needs to collect in order to cover the cost of future claims, ongoing scheme costs, and profit. Another determinant is applying rating factors such as the driver/owner age or vehicle age. The addition of GST also affects greenslip pricing.
A fund levy set by SIRA is also included in the cost of each greenslip. This covers ambulance and initial hospital care, lifetime care for people who have sustained a severe injury, treatment, and care for people with medical needs more than five years after the accident and additional services provided by SIRA.
When fine-tuning a quote you should keep in mind that each situation is different and that each insurer will ask further questions to maximise the precision of CTP pricing.
Insurers choose their own rating factors to assess the risk of each individual policy which is why some CTPs are more expensive than others. Essentially, each rating factor assesses the risk that insurers take on when they cover your vehicle. Some of these may also include:
- Driver Demerit history
- History of at-fault accidents
- If the vehicle has other motor insurance.
There are other requirements that depend on your choice of insurer. These may include the geographic region, what type of vehicle it is, what distances you travel, the actual vehicle performance. Other factors involve the individual’s driving history such as the number of traffic offences, number of years licensed, claims history, number of at-fault claims, etc.
Although insurers, within a competitive market set their own Greenslip prices, there is legislation, regulations, and guidelines that must be followed. The State Insurance Regulatory Authority (SIRA) regulates insurers to verify that they follow these rules and therefore ensure proper and affordable premiums for all NSW CTP motorists.
In emphasising the competitive aspect of the greenslip world, we believe that some other factors should be taken into account when choosing which company to use. For us, it’s sustainability. We give buyers the power to make an impact on their purchase. With Greenslips4Earth, your investment will benefit the environment and absorb the carbon emitted by your vehicle. For every CTP sold we will fund the planting of a tree.
Our tree planting crusade will not only help improve our air quality but it will also provide shelter and regenerate local forests. Purchasing your New South Wales CTP with Greenslips4Earth means contributing to a greener tomorrow and a better environment. Get a quote with us today.