Car insurance system could be overhauled in WA

Mozo

Friday 27 July 2012

Western Australia's (WA) premier Colin Barnett has hinted at major changes to the car insurance framework across the province.

Speaking to radio 6PR, he said he was considering switching WA's compulsory third-party vehicle cover to a no-fault system.

Currently, the state's fault-based set-up is restricting claims when insurers are able to apportion blame on to one of the drivers involved in a collision.

Mr Barnett feels the move would eventually allow the state to adopt a national disability insurance scheme (NDIS).

"If we are going to have a full NDIS in WA it probably means going to no-fault insurance for motor vehicle accidents and that's a big cost to motorists," he told the broadcaster.

The overhaul could see vehicle registrations rise by up to $300 a year, which would be difficult for many motorists to stomach.

A lot of people have already been forced to cut down on their vehicle use because the cost of keeping a car on the road has risen so sharply in recent years.

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Car insurance system could be overhauled in WA
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