Cheaper car regos from July 1

  • 19/05/2016

Registering your car is about to get cheaper.

Owners of light vehicles -- cars, vans, utes and SUVs -- will pay around a third less to register them after the ACC annual licence levy was cut.

There have also been a few changes to the vehicle risk rating system used to calculate the levies.

The ACC annual licence levy is paid as part of your vehicle registration.

From July 1, the average vehicle registration will drop from about $195 to about $130.

"This is a huge reduction of 33 per cent to the average levy," ACC Minister Nikki Kaye said.

"It will save New Zealanders $218 million, and follows $438 million of cuts to motor vehicle levies last year."

The average vehicle registration has fallen from $330 since 2014.

The exact amount drivers will pay will depend on the risk rating of their vehicle.

The risk rating system was introduced by ACC last year, but its roll-out was beset with problems.

Some vehicles were given the wrong rating and ACC had to refund drivers who had been overcharged.

Ms Kaye said changes have been made to the rating system so it better identifies when, for example, improvements have been made to a particular model of car.

It will also better recognise cars that have different names, but are essentially identical vehicles.

Ms Kaye said further tweaks to the system are possible.