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Govt targets small motorcycles with huge rise in insurance costs

Wednesday 30 June 2010

Massive increases in the cost of compulsory third party (CTP) insurance for small motorcycles that come into effect today will act as a disincentive against drivers choosing smaller, less polluting vehicles, warned Greens MP and transport spokesperson Lee Rhiannon.

As of 1 July, 250cc motorcycles and scooters now attract CTP fee-rises from $252 to $465.

 

"The NSW government should be encouraging people to use smaller less polluting vehicles, not creating barriers," Ms Rhiannon said.

 

"The effects of climate change and peak oil mean that people will have to prioritise fuel efficient means of transport.

 

"Small motorcycles are a sustainable means of transport that reduce congestion and allow users to minimise their emissions.

 

"Transport Minister John Robertson needs to explain why owners of small motorcycles are being disproportionately hit by these huge CTP insurance increases.

 

"Owners of small motorcycles and scooters will have their costs increase by more than 80%, while those costs for larger 660cc bikes will be reduced by 30%.

 

"This sends a message to owners of small motorcycles that they might as switch to a larger vehicle.

 

"This huge increase in the cost of insurance is a disincentive for people to chose smaller and less polluting vehicles," Ms Rhiannon said.

 

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