A Tasmanian Government business will not increase car accident insurance premiums next year because of a continued reduction in claims.
But a motoring body says drivers will not avoid paying more in registration fees.
The Motor Accidents Insurance Board was given permission to increase premiums in December by 4.3 per cent, or $15 per car but it has decided to keep them on hold.
It'll forgo almost $7 million in revenue as a result.
Chief executive Peter Roche says the number of claims lodged last financial year dropped by 9 per cent.
He says premiums charged in other states are now up to 50 per cent higher than in Tasmania.
The RACT says drivers will not avoid a hike in car registration fees despite the decision.
Spokesman Vince Taskunas says drivers will still pay up to $48 a year more from next month because the Government is increasing motor tax and the duty on MAIB premiums.
"The RACT is probably just a little concerned that we don't gild the lily by saying motorists are big winners from the MAIB's announcement today because motorists across Tasmania will be seeing quite substantial increases on their annual registration coming through in only a couple of weeks time," he said.