The difference in prices relate to these insurers using a different approach to analyse factors affecting greenslip prices.
You can not register your vehicle until you have purchased a green slip. No one can drive in this state without it. In NSW a trailer is not required to have a greenslip as it is covered by its owner’s car green slip.
However every insurer shares some common factors to determine their greenslip premiums.
The most important factor is the accident record of the driver trying to obtain a greenslip. The cleanest record obvious lowers your greenslip prices.
Drivers’ age also affects greenslip prices. Generally, premiums for vehicles with drivers below 25 years old are higher. This is because drivers below 25 have been linked to statistically higher incidence of motor vehicle accidents. This is why it is important for insurers to know the age of all drivers who will be driving the vehicle most of the time.
Insurers also consider the age and type of vehicle which needs to be insured. This is because the modifications on certain engines or the body of the vehicle makes it less safe on the road and is more prone to accidents. Old model vehicles may also pose a higher risk of being involved in accidents.
Third party property insurance is also one of the factors insurers consider while determining greenslip prices.
Some vehicles are used for business purposes while others are for private use only. This factor also determines premiums to be charged for obtaining greenslips.
Finally, whether your greenslip is new or if you are simply renewing it also affects the price you pay for it.
Hence different insurers use specific criteria to determine the level of risk associated with each of the factors to determine greenslip prices.
Additionally, insurers need to follow the MAA premium determination guidelines if they wish to offer discounts or impose loading on greenslip prices. It is therefore in the best interest of everyone to shop around before choosing your insurer when obtaining greenslips.