CTP green slips savings as new insurer joins market
Drivers are set to save on the cost of compulsory green slips with the first new insurer in more than 20 years about to enter the scheme in NSW.
The state government has granted Youi a licence to offer compulsory third party (CTP) insurance from December 1, joining five other insurers in the market.
With the average green slip costing $486, NSW Customer Service Minister Victor Dominello said premiums should fall even further after Youi's arrival.
"The more competition there is in the market will result in better services in terms of products and a downward pressure on prices - that's just economics 101," Mr Dominello said.
Youi CEO Hugo Schreuder told The Saturday Telegraph drivers can expect cheaper green slips.
"It boils down to the simple rule of supply and demand," Mr Schreuder said.
"If there are more offers, then everyone is more on their toes and therefore sharper on the pricing. Youi is all about understanding our customers better, asking more questions and therefore being able to be really competitive and so we would ultimately try to follow that same approach.
"Hopefully, for a segment of the market, there are going to be very competitive premiums that we can offer against the average premiums."
Youi's entry comes nearly three years after the NSW government overhauled CTP green slips - a scheme providing compensation for deaths and injuries in road accidents.
"In 2017 we broke the business model of the fraudsters that were jacking up the premiums through their fraudulent and exaggerated claims and as a result we put a spotlight on all their bad activities and the cockroaches started scurrying to the other states," Mr Dominello said.
"We don't want them here, we want transparency here, we want a fair go here and under the new reforms with lower premiums, motorists are getting a much fairer go."
Latest figures show NSW car owners are saving $149 under the new CTP scheme with an average green slip each year costing $486 compared with $635 before the reforms.
According to the government, without the reforms, prices could have inflated to $754.
Payton Walsh, of Shellharbour, said she has struggled in the past to pay green slips and any moves to reduce premiums would be a relief.
"It would help young people save a lot of money as well as students," the 20-year-old said.
Youi underwent a rigorous year-long application process before it was given permission to enter the CTP scheme.
Originally published as CTP green slips savings as new insurer joins market