If there’s one thing many Aussies tend to not dwell on, it’s their car insurance. But now for the first time, South Australian drivers will be offered a choice of which insurer they’d prefer to provide their compulsory third party insurance (CTP).
Coming into effect on July 1, South Australians will also be able to bundle their CTP with other insurance policies, like their comprehensive car insurance or even their home insurance policy, potentially helping them save on their total insurance cost.
Insurers will also be permitted to offer certain incentives, such as discounts, rewards programs and gift cards.
CTP, also known as a ‘greenslip’, is a compulsory insurance that must be purchased when your car is registered. This insurance covers physical damage to other drivers and their car if you cause an accident.
And until now, the price of CTP has always been set by the government, which varied depending on location and the type of vehicle.
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“This decision really puts the power back into the hands of South Australian drivers,” said Mozo Director, Kirsty Lamont.
“Having the choice to choose your own CTP insurer gives drivers more flexibility during renewal time and incentives, like discounts and gift cards are an added bonus.”
From July, the government will set a minimum and maximum premium and insurers will set their price within this bracket.
When renewing their registration, drivers will be able to pick from a list of four suitable insurers that are scored out of 100 for price and service.
“The service rating will be a score out of 100 and consumers will make their own judgement on which insurer they want to choose,” said South Australian Treasurer, Rob Lucas.
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Drivers registering new vehicles will still be allocated an insurer, however they are able to switch insurers after three months.
But while Aussie drivers across the rest of the country may have to wait a bit longer to choose their CTP insurer, it doesn’t mean you can't save on your car insurance.
In fact, you can head on over to our car insurance comparison tool to find your next policy or check out some offers below.