How much do greenslips cost?

The cost of your green slip depends on you, your vehicle and the insurer. Find out exactly what factors influence the price of your green slip.

This is the third article in our re-issued 8-part series, How greenslip insurance works.

How are green slip prices set?

Green slip prices are set by the 6 greenslip insurers, not by the government.

These insurers must submit their green slip prices to the State Insurance Regulatory Authority (SIRA) at least once a year. SIRA can reject these prices only if they fail to meet NSW CTP guidelines. In fact, insurers must always notify SIRA before they can change their prices.

SIRA’s role is to make sure the CTP scheme is competitive and green slips are affordable.Since Youi entered the market in December 2020, green slip prices have become more competitive.

The cost of your greenslip varies among insurers. This is because they have different ways of assessing and pricing risk.

What affects the cost of your greenslip?

Some primary factors affect greenslip prices and are common to most insurers:

About you

• Area where you (vehicle owner) live
• Your age
• Age and gender of youngest driver
• Driving experience of youngest driver.

Your vehicle

• Registration status
• Type and shape of vehicle
• Age of your vehicle
• How far you travel each year
• Private or business use
• Other motor insurance held on the vehicle.

Driving and claims history

• Demerit points on your or youngest driver’s licence
• Road accidents in the last 3-5 years that were your fault
• Any licence suspensions or restrictions in the last 3 years and, if so, any drug and alcohol convictions in the last 3 years.

Why does my vehicle affect green slip prices?

Insurers use characteristics of your vehicle as an indicator of risk. For example, insurers receive more claims for utes, vans and light commercial vehicles than they do for motor cars. Some SUVs and 4WDs are also classified as light goods vehicles because of their extra size and capacity. These claims are costly so insurers charge more for these vehicles.

If in doubt about your vehicle type, you can check the shape code on your registration renewal. Here are some examples:

• Light goods vehicle codes – PVS, PVW, PVN, TT, TTF, UTE, VAN
• Motor car codes – CON, COU, FCV, HRS, PVF, SBS, SED, SNO, TWC, WAG.

Why does using my car for business affect the cost of my greenslip?

Using your car for business affects the price because you can claim an input tax credit for GST. SIRA allows insurers to charge more because it costs them more to account for GST and they don’t receive an input tax credit for GST when they pay claims.

Any person or organisation registered for GST has to pay a fixed percentage loading on the greenslip price. This loading is the same, regardless of personal risk factors, vehicle type or geographic area.

Remember to notify your insurer if you change the primary use of your vehicle as it will change the cost of your greenslip.

Why does the youngest driver’s age affect my greenslip price?

Any driver age is a factor in the cost of your CTP green slip. However, younger drivers are more likely to be involved in a road accident. When young drivers first get P plates, they tend to take more risks while driving:

• The first month of driving with P1 plates is the riskiest time.
• One fifth of deaths are P1 drivers even though they make up only 3% of all drivers.
• P1 drivers die at twice the rate of all drivers.

Conversely, L-plate drivers are among the safest because they are under adult supervision. You still need to advise the insurer when the youngest driver is a learner driver.

Is my green slip cheaper if there is no youngest driver?

This is a common misunderstanding. Insurers need to know the age of the youngest person driving the vehicle. If you are the only driver of the vehicle, you are the youngest driver. Remember, you don’t need to be young to be the youngest driver.

Last word

The cost of your green slip depends on you, your vehicle and the insurer. Insurers set greenslip prices and have different ways of assessing risk. They consider your age, driving and claims history and your vehicle type and use, among other factors.

Compare green slip prices for every insurer.

This is the third article in our re-issued 8-part series, How greenslip insurance works. Read the second article, What does a greenslip cover?

Our fourth article, How does my driving record affect my greenslip price?, was recently reissued as Your driving record affects your green slip price.