NSW CTP insurers set the price of your green slip. They do this competitively and according to how they measure their risk. State Insurance Regulatory Authority (SIRA) sets the Guidelines for insurers and the prices they can charge. Find out how the price of your green slip is set.
SIRA regulates green slip insurers
As the regulator, SIRA provides Guidelines to make sure the NSW CTP scheme is competitive and green slips are affordable.
- Premiums Determination Guidelines set upper and lower limits for green slip prices.
- Market Practice Guidelines control the distribution and marketing of green slips.
Even though insurers set prices, there are rules about how insurers must submit their proposed premium prices.
How insurers submit their proposed green slip prices
Insurers have to submit to SIRA their proposed prices, with supporting information, at least once a year. If they want to vary premiums at other times of year, they still have to submit them to SIRA first.
SIRA can reject a proposed price on these grounds:
- It will not fully meet the insurer’s liability.
- The price is excessive.
- It does not conform with the Guidelines.
Greenslip prices are set by geographic or rating region
One important factor in green slip prices is where the vehicle owner lives. SIRA allocates geographical regions in NSW, not the insurers. Insurers have to set greenslip prices on the basis of these regions.
There are 5 geographic (rating) regions in NSW:
- Sydney Metropolitan
- Outer Metropolitan
- Wollongong
- Newcastle/Central Coast
- Country.
All postcodes are allocated to one of these 5 regions. However, 5 postcodes are split between 2 regions.
It is important to choose the right suburb for split postcodes when using the greenslips.com.au calculator.
Greenslip prices are set for each individual and their vehicle
In NSW, green slip prices are set for each individual and their vehicle. Prices take many factors into account, such as:
- Type, performance and age of your vehicle
- How far you travel each year
- Your age as the vehicle owner
- Age and gender of the youngest driver
- Your (and the youngest driver’s) driving history, such as years licensed, number of demerit points and any traffic offences
- Other insurance, claims history and number of at-fault claims.
Of course, prices vary a lot because they are based on each individual and their vehicle. They can also vary considerably from insurer to insurer for the same vehicle owner.
One driver of a Holden ute may pay a different price from another driver of a Holden ute because one lives in the country and has a better driving record. Moreover, two owners may drive different cars but pay more similar premiums because they both live in the same geographic area and have good driving records.
Use the greenslips.com.au Calculator to find out your price.
Who do I contact for complaints about greenslip prices?
There is an opportunity to complain about the price of your green slip, how an insurer provides quotes or how it sells green slips.
You can speak to the insurer or discuss your complaint with SIRA’s CTPAssist on 1300 656 919. CTPAssist resolves complaints about policies or premiums and also provides general support for injured people. Note, it does not resolve complaints about green slip claims.
Insurers do not receive the total price of your green slip
Greenslip insurers do not receive the total amount of your green slip. The price of your green slip includes the insurer premium, GST on the premium and the Fund Levy.
The Fund Levy pays for The Lifetime Care and Support Scheme, which was set up to pay for people with catastrophic injuries in a road accident. It also pays the costs of public hospital, ambulance and other services for all injured people. Finally, it includes a component to cover the cost of SIRA.
To find a breakdown of the greenslip price, click on the + sign next to your chosen insurer on the Results page of the greenslips.com.au calculator.
We chose a few fictitious drivers of different vehicles and found the insurer premium varied between 61% and 66% of the total green slip price. The Fund Levy varied between 27% and 33% of the total price. While these ratios may not apply to you, they show that CTP insurers do not receive the total price of your green slip.
your opinion matters: