Four-wheel drive owners in Australia will not pay a higher insurance premium than ordinary vehicles after a report found they caused less crashes.

The Australian Motor Accidents Authority made the determination following a review of accident data where four-wheel drives were at fault between October 1999 and September 2004, Australian Commerce Minister John Della Bosca said today.

According to the report, to be released today, the average claim cost for four-wheel drives was slightly lower than for other vehicles.

There were also proportionally fewer claims against four-wheel drive policies.

An Upper House committee had recommended the Australian government examine whether the cost of claims involving the vehicles was higher and whether they should pay a higher insurance premium, Mr Della Bosca said .

The authority analysed the costs of medical treatment and compensation following accidents.

"Although four-wheel drives are generally heavier, more aggressive on impact and score lower crashworthiness ratings, the results were surprising," Mr Della Bosca said.

"As a result, the review recommended no separate insurance classification for four-wheel drive vehicles."

There were just 2.7 claims per 1,000 four-wheel drives compared with 3.3 claims per 1,000 non-four-wheel drives and the injury severity inflicted was almost identical, the report found.

Claims made by drivers and passengers injured in four-wheel drives were slightly higher than for other vehicles, but claims made by pedestrians when a four-wheel drive was at fault were considerably lower.

Although there was no justification for making four-wheel drives owners pay a higher insurance premium, the number of such vehicles on the roads was increasing and claims should be periodically reviewed, Mr Della Bosca said.

Australian compulsory third party insurance covers all people injured in an accident where there is a vehicle at fault.

From October 1 this year, the green slip will also cover children at fault.

From October 1 next year, green slips will cover all people from catastrophic injuries, regardless of fault.