Compulsory third party (CTP) insurance rates appear to be headed lower in Victoria – but not in a hurry.

The state’s third-party insurer the Transport Accident Commission (TAC) will look at how to cut the cost of CTP insurance to encourage people to buy cars with particular safety features.

TAC Senior Manager Road Safety David Healy says there’s no set timeline for premium reductions.
 
“It’s really looking at opportunities and whether the time is right for a particular technology to be given some form of boost beyond normal promotional methods – and that’s a fine line,” he told insuranceNEWS.com.au.

“You’ve go to understand what sort of benefits you’ll derive directly from that incentive. Is it sufficient to spur on additional purchases of the device, and so on?”

Mr Healy says the incentive factor is key. Consumers will buy particular vehicles regardless of any CTP cost reduction.
 
“You’ve got to choose carefully how you might structure an incentive so you get the very best return on your investment and get a really good road safety outcome,” he said.