Tasmanians will be spared an annual increase in their compulsory third party (CTP) insurance premiums for the sixth year in a row, according to Premier David Bartlett.

The Motor Accidents Insurance Board, supported by the Economic Regulator and State Cabinet, says no increase is necessary. A premium increase of up to 5.5% could have been recommended by law.

Mr Bartlett says the decision shows Government businesses are doing their best to keep services affordable. Tasmanian drivers continue to pay the lowest CTP premiums for a no-fault scheme in Australia.

“The Government is committed to finding sustainable, long-term solutions to help Tasmanians tackle the cost of living, on all fronts,” he said.

Tasmanian pensioners also receive a 20% discount, saving them almost $70 a year on their premiums.