SA to be hit by compulsory third party insurance increases?
Despite promises otherwise, Shadow Treasurer Rob Lucas is concerned that the government's privatisation of CTP premiums in South Australia will have serious implications for family budgets.
Lucas claimed that Treasurer Koutsantonis had broken his promise that increases to compulsory third party insurance premiums would be only “CPI-like” under the new privatisation scheme.
“One of the major concerns when the Weatherill Government broke its promise and privatised the MAC was the impact it would have on CTP premiums for families,” Lucas said.
He said that despite the government’s assurances, “Mr Koutsantonis went ahead and allowed the new private sector insurance companies to increase premiums by 2.9% each year for the next three years.”
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In the Treasury’s budget papers, Lucas said, the CPI increases were estimated as just 1.75%
this year and 2.25% and 2.5% for the next two years - significantly lower than the 2.9% compulsory third party increases approved by Koutsantonis.
“For an average six cylinder car the increased cost (in excess of CPI) over three years for South Australian families will be about $20,” Lucas claimed.
“Families in 2019 will be paying about $1412 p.a. for CTP or $34 p.a. higher than this
year’s cost.”
Lucas called on Koutsantonis to explain publicly the discrepancy between his promised increases and the real costs being borne by South Australian families.
“This is yet another example where South Australian families struggling with massive
increases in state taxes and charges such as ESL and water costs are being
slugged yet again by the Weatherill Government,” Lucas said.
On top of these added CTP costs, many families are also paying for third party property or comprehensive car insurance policies. The good news is that these needn’t blow the budget - there are plenty of great car insurance deals to be had for those who know where to look.
If your car insurance bill is denting the family budget, head over to our car insurance comparison hub and find yourself a competitive deal.