Car insurance premiums to rise under 'bungled' anti-thief crackdown

Mozo

Wednesday 20 October 2010

Car insurance premiums in New South Wales could soar by up to $100 a year as a result of a derided state government scheme to crack down on "car rebirthing", it has been reported.

Car insurance premiums could soon rise in new south wales content

According to the Daily Telegraph, under new NSW rules, cars previously classified as "repairable write-offs" will be prevented from being re-registered in the state.

The move is designed to stop thieves from buying such cars at auction and using stolen parts to rebirth and register the vehicles.

However, the change could also have an impact on NSW motorists looking to compare car insurance and cut costs. Insurance companies, who had previously been able to save such cars by paying out to owners and selling the repaired version to a new motorist for re-registration, said the prohibition of the practice would result in premiums rising between $50 and $100 a year in NSW.

They also said the scheme was unworkable given that car thieves could simply take the vehicles to other states.

A spokesman for Allianz told the Daily Telegraph: "A measure like this, which is in isolation to other measures and what is happening in other states, is going to be totally ineffective.

"It will only put upward pressure on insurance premiums. Customers are going to be paying more for no benefit."

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