Car Insurance Premiums set to soar in NSW

Bad news for car owners, with premium hikes expected to continue in 2017 and beyond, as insurance providers attempt to pass on rising costs.A recent report from consulting firm Taylor

A recent report from consulting firm Taylor Fry, has found that average car insurance premiums are likely to increase by 4% in 2017, up from 3% in the previous 12 months. And if you’re looking to insure your car in New South Wales, you can expect to be hit with an even steeper price hike.

Compulsory third party insurance (CTP) is set to rise 13% in NSW, due to a recent spike in claims across the state, with the cost of motor vehicle claims rising by 5%. CTP insurance covers you (or the person driving your vehicle) for legal damage claims made against you for injuring or killing someone in an accident. That cover provides compensation for the person who was injured or killed, including other drivers, passengers, motorcyclists, pedestrians and cyclists.

As it stands in June 2017, Australia’s current rate of inflation sits at 2.2%. Premium increases of 4% are almost two times the rate of inflation and can put a significant dent in household budgets.

*Premium increases prior 12 months.

New South Wales also continues to be the most expensive state to own a car.The Australian Automobile Association’s (AAA) latest Transport Affordability Index shows the

The Australian Automobile Association’s (AAA) latest Transport Affordability Index shows the average Australian family is now paying $17,464 per year in land transport costs, an increase of $686 since last year.

The Affordability Index is based on the transport costs of an average Australian household in each capital city and consists of a couple with children and two cars.

Sydneysiders are again the worst hit with an average family paying $22,238 per year, which is up more than $800 dollars since last year.

*Claims previous 12 months

Some quick tips to keep your running costs down:

Insurance

• Find the right level of cover to suit your needs – that might be simple CTP or comprehensive.
• Change your excess – if you’re a careful driver you might consider increasing your excess to reduce your annual premiums
• Get the kids off the policy – if your kids are on your policy you are likely paying an a higher premium than you might otherwise. Consider taking them off if they aren’t
  regular drivers of your car.

Fuel

• Make sure your car is serviced and keep those tyres pumped up – that way you’re car will drive optimally and you can save on fuel.
• Drive in the correct gear. If you drive a manual to make sure you’re not putting additional strain on the engine and using excess fuel.

Servicing

• Shop around for the best deal you can find on capped price servicing.
• Keep it regular – be sure to keep your car well maintained and you’ll avoid big breakdowns and additional costs.