Are you confused about green slip prices? Maybe you received a surprisingly high renewal price from your current insurer. Do you wonder why prices vary so much? Here are 5 things that affect your green slip price.
Which things affect your green slip price?
These are the most important things that affect green slip prices:
- Where you live
- Your age
- Driving history
- Vehicle type
- Vehicle age
There are other factors that also affect the price of your green slip.
You may be able to change one or more of these factors to reduce the price of your green slip next time.
1. Where you live
Where you live affects your green slip price. There are 5 geographic regions and your postcode is allocated to one of these regions. State Insurance Regulatory Authority (SIRA) rates each one for the risk of drivers having accidents and making claims there. These are:
- Metro
- Outer metro
- Wollongong
- Newcastle/Central Coast
- Country.
The risk of serious injury in a road accident is higher in Metro areas, so Metro green slip prices are higher.
2. Your age
Your age affects your green slip price because certain ages are shown to be higher risk. For example, insurers consider drivers under 27 to be higher risk and usually charge them more.
- While young drivers under 26 are 14% of all licence holders, they make up nearly a fifth of all road deaths and 18% of serious injuries in NSW.
Insurers also ask for the age of the youngest driver. If you’re the only driver of the vehicle, you’re also the youngest driver (even if you’re not young). However, if there are other drivers who are younger than you, insurers consider this in your green slip price.
3. Driving history
Your driving history is one of the main things that affect your green slip price.This includes any traffic offences, demerit points on your licence, and years licensed. Demerit points remain on your driving record for 3 years. In fact, the real cost of demerit points is high because some insurers charge more for your green slip for up to 3 years.
Experience counts towards a cheaper green slip. Drivers with more licensed years are less of a risk than drivers on P plates:
- A new P1-plater is 33 times more likely to crash than a learner, but their risk of crashing halves 6 months after they get their P1.
4. Vehicle type
The type of vehicle you drive also affects your green slip price. The greenslips.com.au Calculator asks first what type of vehicle you drive – motor car, ute/light goods vehicle or motorcycle. If you are in any doubt about your vehicle type, check your registration notice for the code:
Motor car – CON, COU, FCV, HRS, PVF, SBS, SED, SNO, TWC, WAG.
Ute/light goods vehicle – PVS, PVW, PVN, TT, TTF, UTE, VAN.
Some large SUVs are classified as light goods vehicles, even though they look like motor cars. Meanwhile, even vehicle variants for the same model can be priced differently for risk.
5. Vehicle age
The age of your vehicle also affects your green slip price. This is because newer vehicles are likely to have more safety features. Research shows older vehicles are known to crash more often than newer ones. Even vehicles that were once considered relatively safe may no longer be ideal because safety standards have lifted.
What else affects my green slip price?
This blog covers 5 major things, but others also affect your green slip price:
- Have you made an at-fault motor insurance claim in the last 2 years? If you did, this could indicate your chances of making a claim again.
- Do you hold other motor insurance on the vehicle? This includes comprehensive and third party property insurance. Many people misunderstand motor insurance and ask why they need a green slip if they already have comprehensive insurance.
- How far do you travel in a year? Someone who spends more time on the road, like a tradie, is higher risk than someone who mainly works at home.
Green slip prices vary between insurers, so it’s a good idea to use our free greenslips.com.au Calculator. You receive the cheapest prices from all 6 green slip insurers and can choose whichever one suit you this time.
Also see: https://www.greenslips.com.au/blog/what-are-the-risk-factors-in-my-greenslip-price.html
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