Premiums for the current CTP scheme and the upcoming Motor Accident Injuries scheme are subject to government regulation to ensure that they can cover our community’s needs while not being higher than they need to be.
These premiums are not ACT Government fees or charges. They are set by and paid to a licensed private sector insurer.
In setting premiums, insurers consider the estimated claims cost for the year (the average claim cost), the estimated number of claims (claim frequency), and their own costs to administer the policies. The premium charged also depends on the type of vehicle and whether it is used for private purposes or for business purposes where a GST input tax is claimable.
The ACT’s current and future insurance schemes are ‘community rated’ schemes, which means that motorists for each vehicle class pay the same premium regardless of their individual circumstances. ‘Community rated’ schemes provide equality and affordability and reduce the cost of compulsory personal injury insurance for drivers with differing circumstances (such as young and older drivers).
The premiums for the new Motor Accident Injuries scheme have not yet been provided by insurers to the Commissioner for approval. We will provide more information about premium costs when insurers and the Commissioner have finalised this process.
You will not need to pay a new premium in February 2020 except where your registration would normally expire at this time. Your existing CTP insurance policy will become a Motor Accident Injuries policy. You will see the new premium reflected in your normal registration notice when your registration becomes due.
You can find information on current and previous CTP premiums on the CTP website.