Taxi drivers face CTP prices almost six times higher than ride shares, warn uneven playfield worsening

Taxi drivers are facing CTP insurance prices almost six times higher than ride shares, warning of an uneven playfield that is getting even worse.

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Taxi drivers say they face punishingly high compulsory third party insurance costs when compared to ride share services like Uber, despite desperate calls for an even playing field.

Treasurer Rob Lucas on Wednesday made a “good news” announcement of CTP cuts of up to $114 for standard motorists, under the first year of a full privatisation model set up by Labor that included selling off more than $2 billion in Motor Accident Commission assets.

Taxi drivers are facing CTP insurance prices almost six times higher than ride shares, warning of an uneven playfield that is getting even worse.

From July 1, the cheapest CTP rate available for a taxi is $3220.

For a ride share, it is $571.

Mr Lucas said the decision had been independently taken by the State Government’s CTP Insurance Regulator, after assessment of the different risks for two categories of vehicle.

SA Taxi Council president Steve Savas told The Advertiser that the huge difference in costs would make it even harder for cabbies to make ends meet in a rapidly-changing business.

“We’re angry that it’s not a level playing field,” he said.

“We feel that we’re hard done by.

“We’ve got accreditation plates and regulations that we’ve got to adhere to. “They (ride shares) are adhering to them now, but after a lot of illegal operations that they did.

“Our operating costs are higher than theirs, so it’s going to be a big strain on us.”

Mr Savas said submissions urging an even playing field were put to the regulator.

Mr Lucas said he met with taxi drivers regularly, and the CTP price call was not his.

He said the CTP regulator would monitor accident rates in the two categories, and despite the difference between prices, taxis were still on track to save about $2000 each this year.

“The taxis should be very pleased with the decision,” Mr Lucas said.

“There is a very significant reduction in the costs of running their taxis as a result of the decision.”

CTP covers drivers against the financial impact of causing injury or death to other road users.