How are prices set?

Insurers set their own Green Slip prices in a competitive market. There is legislation, regulations and guidelines that they must abide by. We regulate insurers to make sure they follow them.

In general terms, when calculating a Green Slip price for you, an insurer must charge enough to cover the cost of future claims as well as the costs of doing business. This is the ‘base cost’ of your premium.

An insurer may then apply a variety of rating factors that will either increase or reduce the cost of your premium. They may consider your age (as the owner or driver), your safety record (the number of at-fault accidents you have been involved in), any demerit points you may have, and your claims history. They may also consider your vehicle’s age, where your vehicle is kept, whether your vehicle will be comprehensively insured, and their own risks across the scheme.

As insurers may apply different rating factors when setting your price, prices between insurers can differ.

The Fund Levy and GST are always included as part of the total price you pay.

The Fund Levy (previously known as the Medical Care and Injury Services Levy) covers public hospital and ambulance services for anyone injured on NSW roads. It also funds the Lifetime Care and Support Scheme, which pays lifetime treatment, rehabilitation and care for people who have been severely injured on NSW roads and the insurer's administrative costs of running the CTP Green Slip scheme.

The following table shows the Fund Levy, from 1 December 2017, in each zone for three common vehicle types.

Vehicle classSydney metroOuter metroNewcastle/
Central Coast
Motor car$142.01$142.00$113.59$126.50$110.15
Motor cycle (226-725cc)$103.48$69.45$70.32$70.27$61.48
Light goods carrying vehicle (up to 4.5t GVM)$233.45$160.99$137.57$170.75$107.40

Our Green Slip Check makes it quick and easy to compare CTP prices across different insurers.

If you have other questions about your premium or need help with a claim, please call CTP Assist on 1300 656 919 (8:30am to 5pm, Monday to Friday).

A new CTP scheme

The new CTP Green Slip scheme started on 1 December 2017, partly to make premiums more affordable and reduce insurer super-profits.

We are closely monitoring and managing the performance of the new scheme to:

  • promote competition and innovation in the setting of premiums
  • ensure the sustainability and affordability of the scheme and fair market practices
  • keep premiums affordable by ensuring that the profits realised by insurers do not exceed the amount that is sufficient for the risk.

How taxi premiums are calculated

In order to create a more level playing field, under the new scheme the number of kilometres each taxi or point-to-point vehicle travels each year will be taken into consideration when their insurance premiums are calculated.

Having a usage based calculation of Green Slips for taxis is fairer when setting premium prices across all point-to-point services.

For example, taxis that operate only on weekends will pay less CTP insurance than a vehicle that is used seven days a week.

SIRA has designed the new premiums in such a way that taxis and other ride sharing vehicles travelling equivalent mileage when earning fares will pay similar amounts over 12 months.

Taxi operators will be given two options for the calculation of their CTP insurance.

Per kilometre calculation method

Taxi operators can choose to pay in instalments and lodge odometer readings for the vehicle every 4 months (or
6 months for TC plates). The first instalment will be due on commencement of the policy and an adjustment will be made to the next instalment based on the distance travelled in the previous lodgement period.

The premiums are expected to be based on a rate of 5 cents/km for T plates and 3.3 cents/km for TC plates, and will be capped at the same amount as the fixed premium option (explained below).

Fixed premium calculation method

Similar to the current scheme, taxi operators can choose to pay the full annual premium and no further action is required until next renewal. Taxis travelling more than 107,000km per year will most likely benefit from this option.

To read more about the new scheme, read the CTP Green Slip reform pages.

Further information