NRMA Insurance is calling for a national approach to car re-birthing as insurers predict premium rises following the NSW Government’s ban on re-registering written-off vehicles.

A spokesman for the insurer says the company agrees in principle with the new laws to be introduced next month, but it wants them implemented nationally.

NSW motorists are expected to be charged an extra 2-3% a year on their premium as a result of the new laws.

Under the previous law, insurance companies would pay car owners when the damage bill surpassed the vehicle’s worth. It would then be fixed and sold to a new owner and re-registered.

But under this scheme thieves were buying the written-off vehicles and using stolen parts so the cars could be re-registered.

Losses associated with insurers not being able to sell written-off vehicles are expected to be absorbed into premiums.

But the State Government has defended the move, saying it’s a small price to pay for safety and to reduce the growing car re-birthing epidemic.

A Government spokesman says Roads Minister David Borger met with insurers on several occasions and was told consumers faced a “minimal” rise in fees.

“However, we anticipate there will be significant savings to the insurance industry due to an expected reduction in payouts for unrecovered stolen cars,” she told insuranceNEWS.com.au.

The NSW Government believes even if there is an impact on premiums, it will be offset by the benefits in reducing claims for vehicle theft and a greater level of safety in repairs.

“What we are guarding against is mums, dads and their kids driving cars that have had the once-over in a chop-shop,” the spokesman said.

NRMA Insurance last week presented the NSW Government with a brief outlining the need to negotiate a national agenda to prevent NSW write-offs being taken interstate to be re-registered.

“A national approach must be endorsed across all states and NRMA Insurance endorses a national ban on re-registering repairable write-offs,” the report said.