Average motor premiums in NSW have fallen below $600 ahead of the switch to a new compulsory third party (CTP) scheme in December, according to the State Insurance Regulatory Authority.

Motorists can expect a 5% reduction for cover bought after July 1.

A government crackdown on fraudulent and exaggerated claims, launched in February, is achieving desired outcomes, with claims for soft tissue and minor injuries declining and other claims being withdrawn.

 “This behavioural change is already starting to have a positive impact on premiums,” Finance, Services and Property Minister Victor Dominello said.

“When the new scheme starts at the end of the year, the NSW Government will deliver on the elusive trifecta of improving benefits to those injured on our roads, significantly reducing premiums for motorists and taxis alike, and putting an end to insurer super-profits.”

In March the NSW Parliament passed the Motor Accident Injuries Bill, paving the way for implementation of the new greenslip scheme.