Queensland motorists want affordable CTP premiums

84 per cent prefer affordability84 per cent of motor vehicle owners report that a CTP scheme that has a focus on affordable premiums for the majority of the community is more important to them than a scheme where the focus is on promoting greater price competition between insurers, according to the results of a MAIC commissioned motorist research study.

MAIC commissioned the study to better understand general motorist and new car buyer views on the Queensland CTP scheme. Key highlights of the study included insights into motor vehicle owners’ awareness of the CTP scheme, their intention to switch CTP insurer and their perceptions of the affordability of the scheme.

While awareness of CTP insurance was found to be high (97 per cent), half of the respondents incorrectly assumed that CTP insurance covered third party property damage and one third of respondents incorrectly believed that the at-fault driver’s injuries were covered in an accident they had caused.

Intention to switch remained low with only one in five respondents reporting they were likely to consider switching CTP insurer in the next 12 months. Among those with an intention to switch, wanting a cheaper price (62 per cent) was by far the most common reason for considering switching in the next 12 months. No price difference, too much effort, and never thinking of it were reported as the main reasons for not switching.

Resoundingly, respondents identified premium affordability as the most important factor to them – more important than the choice of CTP insurer, price competition or access to multi-policy discounts. Maintaining a simple and efficient mechanism to pay and renew CTP insurance was also a clear feature for motorists.

More information on the study can be accessed in the Summary Document.

Last modified 2 August 2016