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CTP rates increase 4% in WA

Compulsory third party insurance premiums for motorists in WA will climb 4% next month to cover losses in the state’s investment portfolio.

The WA Insurance Commission has announced that from July 1 the premium for a private sedan will increase $8.57 per year to $222.74 before GST.

Commission MD Vic Evans says the increase is due “primarily to the impact of the global financial crisis on the Insurance Commission’s investment portfolio and the inherent uncertainties surrounding this situation going forward”.

He says WA premiums remain the cheapest in the country with the next lowest premium about 25% more expensive than the Western state.

The increase in WA rates follows an 8.5% increase in SA and a proposal to lift rates 3.5% in Tasmania.