Nothing. The change in premium class will automatically appear on your vehicle registration renewal notice effective from 1 July 2020 or your account if you pay by direct debit.
The premiums for 1 July 2020 will be known in May after the Regulator sets the upper and lower premium limits and the CTP insurers set premiums within these limits.
If you own a private passenger vehicle, using the lowest annual premium offered as at 25 February 2020 as an indication, the CTP premium will move from $201.03 to $296.77.
If you own a goods carrying: heavy vehicle and are entitled to an input tax credit, using the lowest annual premiums offered as at 17 February 2020 as an indication, the CTP premium will move from $1,325.44 to $1,752.76.
Information for other vehicle types can be calculated for the current rates using the CTP premium calculator.
South Australia’s CTP Scheme operates with a community rating model. This means owners of a particular class of vehicle all pay the same premium based on the claims experience of that class, regardless of individual driver history or driving patterns.
For your premium to be increasing, your vehicle garaging address met the criteria for transferring from district 2 to district 1.
A suburb must have more than two claims per 1,000 registered vehicles and 30 or more CTP claims between 2013 and 2019 for it to be a district 1 suburb.
Vehicles garaged in Lewiston and Two Wells will now be classed the same as vehicles in neighbouring Virginia and Penfield Gardens. Vehicles garaged in Aldinga Beach and Sellicks Beach, will now be classed the same as vehicles in neighbouring Port Willunga and Aldinga.
This brings them in line with suburbs that meet this criteria and are already in district 1.
Changes will not be made to the boundary before the next review planned for 2030. The 2020 review means suburbs and postcodes are in the district appropriate for their current CTP claims experience.
CTP insurers do not benefit from the boundary review. The amended boundary alters the contribution each district makes to the funding but CTP scheme funding remains the same.
The CTP insurance rating districts were introduced in 2002. Reviewing the district boundary identified areas that had claims experiences inconsistent with their current district classification. These areas were transferred to the appropriate district to help ensure CTP premiums are applied fairly across the community.
A total of 44,000 premium paying vehicles, owned by 31,000 people, are transferring between districts. Approximately 16,000 vehicles, owned by 12,000 people, are transferring from district 2 to district 1 and approximately 28,000 vehicles, owned by 19,000 people, are transferring from district 1 to district 2.
Compulsory Third Party insurance covers people injured in a motor vehicle accident that is found to be fault of another vehicle. CTP insurance is paid at the same time as your motor vehicle registration – and just as registration of your vehicle is compulsory, so is CTP insurance.