The Regulator is responsible for determining CTP insurance premiums under the Compulsory Third Party Insurance Regulation Act 2016 (CTPIR Act).

During the transition period from 1 July 2016 to 30 June 2019, annual premium increases are in line with the contractual agreement between the CTP Insurers and the Government. During this time, CTP premiums increase by around 3% per annum.

This was designed to ensure a smooth transition for both CTP Insurers and vehicle owners ahead of CTP price competition for policies due on or after 1 July 2019.

Competition Scheme

For policies effective from 1 July 2019, CTP Insurers will set their own premiums for each premium class within a range determined by the Regulator.

The range for each premium class will be based on the Scheme experience and independent actuarial advice. Primarily, premiums are driven by the number and cost of claims projected for each accident year.

Find out about the new Competition Scheme.

Premium classes and districts

CTP premiums are set using a community rating by type and purpose of use of vehicle, and garaging location (Insurance Rating Districts 1 and 2).

Motor vehicles are classified into separate premium classes, with the owners of a particular class of vehicle all paying the same premium based on the claims experience of that class.

The two Insurance Rating Districts are divided by a fixed boundary via postcode and, in some areas, localities within postcodes. Each district has a different premium rate for each premium class. The difference in premiums between Districts 1 and 2 reflects the difference in the number of CTP claims and the average cost of CTP claims arising from at-fault vehicles, based on garaging addresses.

If you live on or near a postcode boundary, the premium for your vehicle may be different to the premium for other vehicles registered to nearby addresses, as they may be in a different Insurance Rating District.

Read more about premium classes and Insurance Rating Districts.