Why is NSW CTP so expensive???

Azn310 on 31/12/2015 - 15:39

It has been said before but I will do it again. Final whinge before the new year starts, I promise. Why on earth is our CTP getting so expensive? I'm 29, clean record, no accidents, driver for 4 years, small 2004 and 2005 car, paying close to $900 per car on CTP alone.

Rego is $260-300 i have no complain about that. Third party fire theft another $300 I'm good with that. CTP $900!!! That's like 1/4 of what my car is worth.

I know there are people paying about $500 for CTP, but i know so many paying upwards of 800.

I think its about time someone start a social group that tracks down how the fund is being used? I would hate it to find out a couple years later that they misuse the money for some managers' family trips to Maldives. Or for some doctors who delay services to CTP-related patients in order to maxmimize his profit from CTP.

Any thoughts and opinions?

Automotive

Comments

  • rogsamsy on 31/12/2015 - 15:44
    +2

    Long tail Personal injury compensation claims can be very expensive.

    • Thenarrator on 02/01/2016 - 12:26

      and it all goes to doctors and nurses.. should put a price bar on how much health practioners charge

      • ankor on 02/01/2016 - 16:07

        Actually it goes to the law firms, doctors and nurses don't get much. Even the independent medico legal examiners don't get much in the end.

        • Thenarrator on 02/01/2016 - 16:18

          Personal injury. they get injured, they go hospital. Some admin fee but why would there be any legal fee.. you saying the injured sues the insurance company for not paying the correct amount of treatment?

        • ankor on 03/01/2016 - 00:09

          @Thenarrator:

          The injured person sues the negligent driver. CTP insurance is explained below.

          http://www.comparethemarket.com.au/ctp-insurance/ - this is a small and easy definition of ctp insurance.

          Then there's a bit more reading with regards to personal injuries and negligence

          http://www.legalaid.wa.gov.au/InformationAboutTheLaw/BirthLi…

          So what does it feel like to be a claimant?

          So basically, lets say I'm stopped at a red light and you run into the back of my car at 40kph.
          My skull, which is quite a heavy piece of work is resting on my skinny ass neck and it suddenly whips back and forth.
          I feel fine at the scene of the accident and say, yeah I'm fine, all good - but in my excited state and with adrenaline kicking in, I don't feel a thing.
          A day or two later, I go see a doc and complain of neck aches and headaches. I also have a left shoulder ache.
          It doesn't go away for a month, and I've lost a few shifts of work and it's kind of concerning cos I am a painter by trade
          e.g. income for 2 wks post accident goes from 900pw to 600pw because I can do 3/5 days of work
          I see a glitzy ad from a reputable law firm-
          I go in, sign a few things and hear no win, no fee.
          blah blah blah - the law firm gets me to go to a doc to get a recommendation for treatment
          then about 12m later, my injury has settled and I'm considered stable and stationary
          In the meantime, the lawfirm, and the insurer has done a LOT of digging around my medicals, and my finances
          then I get referred to a doc to do an 'independent medico legal assessment'
          the ctp insurer, gets the results and decides, yup, ok that's not too bad
          about the 12m to 18m mark, I sit in on a conference between the insurer, and my lawyers- sign a few docs and get awarded X sum of money
          then it's time to divvy up the settlement funds between myself and the lawyers.

          So how does all this affect your ctp insurance?

          If your insurance company is paying out more and more $$ in ctp insurance claims, then the premiums are going to go up.
          If you're in the age bracket and the gender bracket that is higher risk, your ctp insurance goes up.
          if you're in a high performance sports car as well- it's going to be higher again..

      • pao2x on 08/01/2016 - 16:57

        Wow nurses rolling in the dough! Which universe did you come from?

  • lovesabargain77 on 31/12/2015 - 16:05
    +1

    $900.00 seems extremely high.

    Is the car registered for private or business use?

    Have you tried comparing prices from different insurers using the green slip calculator?

    http://prices.maa.nsw.gov.au/

    Also the following link gives info on how the Green Slip prices are set.

    http://www.maa.nsw.gov.au/green-slips/how-green-slip-prices-…

    • Azn310 on 31/12/2015 - 22:08

      Car is registered for private use.

      I did try the calculator, other insurer price is similar, maybe a mere $30 less than my current one, NRMA.

  • plmko on 31/12/2015 - 16:06
    +3

    driver for 4 years

    You answered your own question lol

    • Azn310 on 31/12/2015 - 22:09
      +1

      lol how long do I have to drive to get cheaper? So far, it seems they increased it every year. Simply put, they increase faster than I age :(

      • Noblejoker on 04/01/2016 - 14:11

        No - only NRMA uses your driving years for calc - which is a rip-off bundling tactic

        The govt sets the prices based on
        1. age of the driver - younger and very old drivers statistically have more & more serious accidents
        Prices used to reduce at 25 then 27, now it's 30
        2. age of the vehicle - older vehicles have less passenger safety and deteriorate
        3. postcode - more accidents in metro

        And first time registration (blue slip including inter state transfer - is more expensive that first time
        Size of motor etc is not a rating factor for cars - it is for bikes
        6 month CTP is available and isn't much dearer for 2 x 6mths than 12 mths

        Hope that helps

    • Tech5 on 02/01/2016 - 01:05

      CTP + Rego for 2003 in QLD for a driver of 2 years is only $600

  • pao2x on 31/12/2015 - 16:56

    Have you used the greenslip calculator?

  • FeRGan on 31/12/2015 - 17:25

    try qbe… i saved $190 by switching from nrma

    • Azn310 on 31/12/2015 - 22:10

      My saving is only about $30 or so, when I ring them up, they say its government regulated blah blah

      Even NRMA won't do loyalty discount on CTP :(

  • Findo on 31/12/2015 - 17:30
    +2

    I'm a 21 year old and I've been driving for four years. Squeaky clean record. If the turd car I drive has me listed, CTP shoots up to $1200, but without me listed, it's a mere $580.

    • Azn310 on 31/12/2015 - 22:11

      Seems like its all depend on the driving years in the end?

      Geez man, $1,200 for CTP, that's off the roof.

    • saddybedangdang on 02/01/2016 - 08:55

      21, male and four years driving too. It kinda sucks that they charge so much more. This is the age where we don't have a significant salary due to studying/apprenticeships/casual jobs, yet we are hit with a pretty hefty bill. Does gender change the price?

      • Findo on 02/01/2016 - 13:27

        It does a little

      • onetwothreefour on 02/01/2016 - 16:50
        +1

        You're also more likely to have a crash.

        • TheOneWhoKnocks on 11/05/2016 - 19:00

          Are you saying that in comparison to more older drivers?

      • nafe on 07/01/2016 - 11:37
        +1

        Blame the idiots in your age bracket (not you) who keep having accidents and writing off cars etc

  • onlyletters on 31/12/2015 - 18:30
    +1

    The price seems to adjust every quarter, if this quarter has had heaps of claims, CTP goes up, but it takes a while for it to go down, they do this recover lost money..

    Once your 30 or over, the price goes down by a few hundred, previously it was over 25 would get cheaper rates then they jacked it up, before you know it, when your 30, they will jack it up to 35.

    • Azn310 on 31/12/2015 - 22:14
      +1

      thanks for your info. I like your sense of humour, and sadly it seems to be happening lol

      I tried putting myself as 30 with a newer car to see if CTP is any different, it's almost the same, maybe a $100 less.

      Before, CTP was the only joy I have for nearly reaching 30. Now when I turn 30 I'll be miserable, I'm old and the CTP is still high!

      • Findo on 31/12/2015 - 22:21

        I'm in for a world of pain. I'm buying a new car that is seen as a hoon car with too many killerwasps under the bonut and I'm under 25. The lowest quote I got was $1300 for CTP :(

        • Cheeper on 01/01/2016 - 03:04

          Don't new cars come with reg/ctp included in the price for the first year?

        • Findo on 01/01/2016 - 03:26
          +1

          @xywolap: Sorry, should've made it more clear in that I'm buying a used car - an upgrade of sorts, a new car compared to my turd car.

  • Cheeper on 01/01/2016 - 03:00

    With combined ctp, rego and inspection fees being so expensive for some it is no wonder that so many choose to not bother. It is getting beyond the joke. The fine for being unreg would be a lot less but is the risk of an accident worth it.
    Drivers age, driving experience, type of vehicle and location seem to be the governing factor for the premium assessment.

  • ozhunter on 01/01/2016 - 03:33

    Try aami

  • rigby75 on 01/01/2016 - 07:36

    It jumped up in price when the workers compensation rules changed and you where no longer covered to and from work. Like others wrote it's personal injury which are expensive.
    It was a lot cheaper when it was part of rego but the shortfall came from the government.

  • Ritchma on 01/01/2016 - 07:40

    Lucky I can do my ctp using dealer application and it's "only" $564 instead of $865 which was this year renewal… It's a rip off. And the most stupid part is that ctp wouldn't cover damage to other cars you make. That's how it works in Europe…

    • Azn310 on 01/01/2016 - 20:33

      How are you able to do that? You reckon I can come to a dealer and offer them $100 so they buy CTP for me? I will come out as roughly $700 instead of $900

      • Ritchma on 03/01/2016 - 20:47
        +1

        I doubt they would do that. Dealerships have cheaper CTPs as we register and insure hundreds of cars and most of our customers when they receive renewal they just pay the normal price and stay with the insurance company. As a bonus for employees we can do it for ourselves but I think only two or three of us know about it..

  • Wonka on 01/01/2016 - 11:00

    Did you work out the variable that's driving the price on the calculator? If I put in an 18yr old with a 2010 car, clean record - it's about $700. Is it the age of the car which is driving up the price?

    • Azn310 on 01/01/2016 - 20:31

      How long have you been driving? I think it makes a big different. I tried putting myself as 30yr old with new car, still very similar pricing.

      • ozhunter on 01/01/2016 - 20:44

        My sister is under 25 and on her P plates. She has her license for less than 2 years and a 10k car. Rac and Allianz gave her quotes of $1500+; aami was around 660.

        • Wonka on 02/01/2016 - 08:31
          +1

          There's a fixed number of variables and they all contribute. One I think which is being overlooked is the postcode. I tried a number of different postcodes and saw fluctuations close to $300

  • Ozziejack on 01/01/2016 - 11:19
    +4

    Interesting about NSW car charges. We came up from Victoria about 11 years ago and noticed that car rego, CTP and insurance was much dearer. Not sure what happens now but in those days the CTP was covered by the government not a myriad of insurance companies all eager for profit. Any profits from CTP were used by the government for road safety and the cover was universal, didn't matter whether you were at fault or not - thus loads of legal costs were removed as well and that's probably why it was cheaper as well. Even our box trailer (no rego reqd in Vic) had to be registered. The trouble is that NSW seems to think that it has the only good way to do something and they don't look to see what other states are doing. Just as another example, annual roadworthy certificates - not required in Vic and yet we couldn't believe how many bombs and cars with obvious roadworthy faults were up here despite them being inspected every year. I don't think the NSW government really gives a toss about costs to the average citizen.

    • tonyjzx on 01/01/2016 - 13:25

      NSW doesnt seem to be able to control CTP costs unlike other states.

      I think 5yrs ago you were paying under $400 for CTP and now its gone up to what the OP says. Thing is we all know medical costs go up but they keep increasing what CTP covers so its a snowball. I beleive it covers injuries to kids for life now. Not that thats a bad thing but a good example is someone like me, I have never been injured in a car accident, I have never caused injury to anyone else and yet… price has tripled in so many years.

  • tonyjzx on 01/01/2016 - 13:32

    A further comment for discussion, I beleive commerical vehicles like utes and vans and light trucks cost even more for CTP, even if its an SS HSV V8 type ute which is clearly NOT a commerical vehicle.

    Has anyone got such a vehicle and want to tell us what they pay?

    Reasoning is that they think utes and vans are on the road more than cars so have higher risk.

    Btw. the risk factors for cars are basically age of driver, age of car, suburb and the RTA driver record (ie. number of demerits, suspensions and DUI etc.)

    I remember ages ago talking to a mechanic who did CTPs and the people was processing included a young man from Penrith who had DUI records and drove a 1988 Commodore and so his CTP was like $1,200!

    If you're a 60 yr old gentleman from say, Double Bay in a 2014 Porsche Cayenne with a clear record then you can expect a cheap premium.

  • Mumbles on 01/01/2016 - 17:54

    The biggest factors are Age and PostCode.

    Play around with the age and post codes in the comparison tool:
    http://prices.maa.nsw.gov.au/

    PostCode = 2600 (ie. Canberra/rural), Age >36 results in QBE @ $367 per year.

    The NSW greenslip scheme has been around for more then 30 years:
    http://www.maa.nsw.gov.au/about-us/about-the-nsw-ctp-scheme/…

    Each year the insurance companies get better with their number crunching and increase premiums for the riskiest groups and lower for the safer groups. Taking into account inflation over the years I've noticed that my insurance costs are the same or cheaper than what I paid to keep my car on the road 3 decades ago. Its interesting because new cars have become cheaper to produce, have more safety features and road design is much safer (eg. water drains, road camber/crown, overtaking lanes).

    The most pragmatic way to get lower CTP premiums for your under 30 age group would be instead of lobbying insurance companies and government is lobby your peers who are under 30yrs old to:
    - lower the number of car accidents.
    - carry less passengers.
    - lower the number of CTP claims they are putting in.

    I'm also a motorcycle rider and our road costs are more unfair. Motorcycle riders have tonnes of lobby groups and associations but their lobbying and education has done nothing to lower NSW CTP premiums. Instead the government are onboard with increasing motorcycle CTP!

    • tonyjzx on 01/01/2016 - 18:49

      I think because its an easy target and there's an image problem to the unwashed masses out there.

      Motorcycles are recreational so therefore they dont care if they crack down on something like that.

      Everyone drives a car. Bit harder there.

    • Azn310 on 01/01/2016 - 20:46

      Holy moly, only $367 a year?

      I assume you must have a long driving record? since you said you've been keeping your car on the road for over 3 decades. It seems driving years do add to the lower price too.

  • aladdin on 01/01/2016 - 21:49
    +1

    found this comparison between CTP
    http://www.greenslips.com.au/green-slip-comparison.html
    some companies have at fault driver cover while some not.

  • watwatwat on 01/01/2016 - 22:37

    If you have any demerit points like me, you will be F'd in the A by every car insurance company in Aus. Think… $300-$400 more per year.

    • tonyjzx on 02/01/2016 - 00:16

      That's the thing. They didnt used to ask. And lets be real here, many many people get demerits. Hell my dad drives safer than anyone and even he gets the occasional fine.

  • lost69 on 02/01/2016 - 07:06
    +2

    Ahhh, no licence, no car, and not a care in the world.

    • Azn310 on 03/01/2016 - 23:38

      Even if you dont need a car, I would suggest you get a license as soon as you can, so you can build up a 'long driving history'. It will lower your insurance premiums in the future, and it can potentially save you from fines.

  • neonlight on 02/01/2016 - 09:42

    Say thanks to reckless drivers out there. Getting more expensive cause peoples poor driving and road rage happening every where.

  • captobvious on 02/01/2016 - 10:16

    How much ctp for a moped?

  • whitewatermelon on 02/01/2016 - 10:21
    +1

    Just renewed ours in dec. 2003 mazda 3. Postcode 2259. Cost $470. 35yr (f) & 44yr (m) drivers. One speeding ticket about 10 years ago. Think its up a little bit from last year, but cant be bothered checking.
    BUT I was happy to receive my licence renewal form for nsw. Its half price if no offences in last 5 years. $162 for a 10yr licence. Do other states have the same discount? Or is nsw the only one at 50%?

  • photonbuddy on 02/01/2016 - 11:26
    +1

    Did mine in September. Ford Territory 2007 with 1 at fault accident in January last year (necessitating a new car!) No fines for quite some years (more than the 5 they usually ask.) 47yo male, postcode 2298.

    I paid $377 with QBE.

    I think the biggest problem is so many people going for all sorts of tests after an accident 'just in case' where-as years ago, unless it hurt real bad, people didn't bother as much.

  • geordie on 03/01/2016 - 23:47

    I saved money on my CTP Gslip by getting fully comp insurance on my bike, when I had 3rd party property damage + Gslip the total was dearer than full comp + Gslip

    • Azn310 on 05/01/2016 - 22:27

      Its strange, i was told by the NRMA lady that Gslip is government regulated and they cant do much about it etc..
      And full comp insurance is still limited to property only, isnt it? If so, how can it lower Gslip, I'm so curious

  • juzz0 on 08/01/2016 - 01:36

    I've been driving for over ten years. No insurance claims, suspensions or court driving offenses (I have had a couple of driving 66 in a 60 zone type speed camera offenses, no drink/drug driving record). NRMA wants to charge me over $450 on my 2000 Toyota Corolla 4-cylinder runabout for six months cover (it is roadworthy and received a 12 months valid pinkslip six months ago). If I go to AAMI I can get twelve months for $414 (the same CTP). For comprehensive it is $787 (still less than NRMA per year which is over $900 - just for CTP!). The premium is up from $440 six months ago (every year it goes up just like OP). I haven't moved postcodes or changed my driving habits…

    Good riddance NRMA. I feel dirty because I just paid out another $137 for roadside assistance (110 + 27 for key cover). Rip off merchants.

    • nafe on 08/01/2016 - 11:03

      It pays to shop around each and every year for CTP and Comprehensive. I got quotes from $700 to $2600 from various companies for my car. Ironically, NRMA was the cheapest and offered cover for any driver etc. Will see how it goes with the renewal next year.

  • Thenarrator on 19/04/2016 - 20:22

    My parent has added my name to their ctp. Im 24 and it increased their ctp by $200. What happens if they decide to remove my name? consequences? legal? can i still drive?

    • Azn310 on 30/04/2016 - 10:51

      CTP is for the car, so if they remove your name, when something happens, you can just say you borrow the car?

      I put my cars and CTP under my name, and my family members use them. I think its only with other insurance that you are require to list drivers name specifically.

      So.. I dont understand why your parents put your name in their CTP policy. Are you maybe confused with Third party fire theft insurance?

      • Thenarrator on 30/04/2016 - 11:23

        there has to be a draw back for not putting my name in ctp. I mean its a whopping $200 difference. Competition says that eventually no one will put it on their ctp if there is zero difference.

        • Noblejoker on 30/04/2016 - 15:12

          I can confirm that there really isn't any drawback
          There is no restriction under the legislation (remember CTP is NSW state law more than insurance) for having someone under 25 drive your car
          There are lots of people old or young who can't have their rego in someone else's name - and hence pay the higher price
          Sydney/metro pay more than country, older cars pay more than new and most insurers charge extra if you have lost demerit points
          Buy a car from the country and move it to Sydney - you won't get charged extra till next rego

          Private insurance - third party property damage (bomb), TP Fire & Theft or Comprehensive - are issued by private insurance companies
          The rules and conditions are in the contract and most will require you to declare younger drivers or those with poor history like DUI
          If you don't declare drivers on that kind of cover then your policy may be worthless

  • elio on 10/05/2016 - 10:17
    +2

    CTP is a rip-off for ONE REASON and one reason ONLY - the insurance companies make excessive profits.
    There are only 4 companies with licences now and they all "co-operate" (collude is a more appropriate word) with each other and chase each other so that if one increases prices the other one doesn't want to fall behind and increases prices even more. The biggest Mafia in the world.
    Their profit margin as around 30%, but they lie and tell the government that their profit margin is only 9%.
    The Government is too stupid to employ someone with brains that understands CTP insurance and knows the tricks of the trade, so insurance companies get away with it.

  • aladdin on 09/06/2016 - 23:26

    Different company different cover. Some do cover driver at fault some do not. Some cover every age some term n condition apply. Do more research n choose the right protection for yourself.

    • Azn310 on 11/06/2016 - 21:34

      CTP is not about protecting yourself. It is protecting other people, and also protecting the lawyers and doctors investments. I think you may be confuse with property insurance?

      • aladdin on 11/06/2016 - 22:57

        http://www.greenslips.com.au/at-fault-driver-cover.html

        That's what im talking about. I care about my family especially my wife when she drives my car. So this is important for me. Someone may want cheapest possible price so those insurer who may not cover at fault driver may be their best choice.

  • drmaf17 on 11/04/2017 - 10:58

    I have just moved from Qld to NSW. My CTP in Qld was $160, here the cheapest quote is $410??? Why?

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