Compulsory third-party car insurance premiums are on the move in SA, where drivers of the average family car will pay an extra $32 from next month.

The SA Government last week unveiled a 7.2% increase in premiums, taking the typical annual cost to $476.

Motorcyclists will pay an extra $15 for a total premium of $218 as the State Government rebuilds the coffers following the global financial downturn.

SA Treasurer Kevin Foley admits drivers are unlikely to welcome the increased fees, but “in years when the financial performance of the fund has been strong, the Government has been in a position to reduce third-party premiums”.