A typical Adelaide household will save about $200 a year after QBE and Allianz cut their compulsory third party (CTP) premiums, according to SA Treasurer Rob Lucas.

From July 1 insurers can compete on CTP prices and service in SA for the first time, after the market was privatised.

QBE has cut CTP premiums to the lowest rate permitted for private passenger vehicles and goods-carrying light vehicles such as utes, slicing $68 from its CTP passenger vehicle metropolitan charge, matching Allianz.

“This is fantastic news for motorists who, quite clearly, are reaping the rewards of a new competitive market where insurers can compete on price, as well as service,” Mr Lucas said.

Since CTP was dropped by the Motor Accident Commission three years ago, SA motorists have received the same CTP cover at the same price from four private insurers: Suncorp, IAG, QBE and Allianz.

Under the new competition model, the insurers can adjust their prices in any direction at any time within bands set annually by an independent regulator.

The insurers made an upfront payment of $260 million to participate when the market was privatised, and contributed a further $1.55 million in the first three years for road safety.