Statement Released: 1 August 2006
Compulsory Third Party insurance premiums for Western Australian motorists will be reduced by 10 per cent for the majority of vehicle classes in the 2006/2007 financial year.
The exceptions being vehicle classes
"This means for the coming financial year the majority of Western Australian motorists will pay $25 less than they did in 2005/2006," Insurance Commission of Western Australia Managing Director Vic Evans said.
Mr Evans said that Western Australian motorists continue to have the cheapest private vehicle premiums in the Nation.
The premium for private motor vehicles would remain the most affordable of all States and Territories at $205.25 (excl. GST) during 2006/2007.
Mr Evans said motorists in Western Australia continued to have an unlimited indemnity policy of insurance for Motor Vehicle Third Party (Personal Injury) with benefits equal to, or better than, comparable policies anywhere in Australia.
"Even before this reduction, Western Australian motorists enjoyed the lowest premiums in Australia by 21%. This latest decision will broaden this gap," he said.
Since 2001/02 there has only been one year where premiums have increased and that was in 2003/04 where a modest inflation linked increase applied.
The Insurance Commission of Western Australia has been able to provide these significantly lower premiums due to a combination of efficient claims management, excellent return on investment and the fact that there is an ongoing downward trend in claim frequency.
This reducing claim frequency is a credit to the work of the Road Safety Council/Office of Road Safety whose work in making our roads safer is clearly paying dividends for the people of Western Australia. The Insurance Commission assists in the funding of certain Road Safety Council initiatives.