Canberra families to save on third-party insurance

Canberra families will save as much as $24 on some compulsory third-party insurance from March as competition in the market appears to be driving down prices.

Insurance giant GIO will offer the ACT's cheapest premiums for family cars from March 1 when it drops the cost by $23.90 - or 3.7 per cent - to $568.60.

But families who pay premiums through AAMI and APIA will also be better off with both insurers also lowering their family car premiums.

AAMI's family car premiums will fall by $8.20 to $590 while APIA's premium will decrease by $1.20 to $595.

ACT compulsory third-party regulator Karen Doran said the new premiums showed competition was offering "real choice and benefits" to motorists.

The approval of the new premiums by the regulator came after an actuarial review.

Licensed insurers are required to charge premiums that will fully fund their liabilities, but are not excessive.

Ms Doran was satisfied the new premiums charged by GIO, AAMI and APIA were "soundly based and are not excessive".

In December, insurance giant NRMA increased its compulsory third-party premiums for ACT drivers by 1.8 per cent - or $10.40 - to $588.60.

NRMA had a monopoly on third-party insurance in the ACT until July 2013, but now competes for customers with Suncorp's GIO, AAMI and APIA.

This story Canberra families to save on third-party insurance first appeared on The Sydney Morning Herald.