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Premiums

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CTP insurance premiums are collected with South Australian vehicle registration payments.

A 6.3% increase in the average CTP premiums across all vehicle classes will come into effect from July 2008, including an increase in Class 1 passenger vehicle premiums to $410 (i.e. for the family car garaged in or near Adelaide).

Click here to find out the cost of your vehicle premium for 2008-09.

Setting premiums

Increases in medical and wage costs will eventually force premiums to increase unless there is a reduction in the number of road injuries requiring compensation. MAC seeks to contain annual premium increases by managing its investments, the cost of administering the scheme and the cost of claims.

An independent committee established under Section 129 of the Motor Vehicles Act, advises the Government on how much to charge for CTP Insurance premiums. The Committee is required to determine rates on a fair and reasonable basis and allow for appropriate levels of funding and return so that MAC can maintain its Sufficient Solvency Target.

The committee is made up of:

  • a senior lawyer (Chairperson);
  • one person selected by the Government;
  • three representatives of motorists, and
  • three insurer representatives.