Kia Automotive Australia has cut the recommended retail prices of its 1,500 fastest moving parts with the result that the country's largest insurance group, IAG, has said insurance rates for the new Kia Cerato (Spectra in the US) will be 24% less than those for the car it replaces.

The recommended retail prices for the parts required for Rio owners during the first 90,000 kilometres have reduced by 22% and for owners of the Carnival (Sedona) minivan , the reduction is 23.9%. Repair costs for these models have also dropped, with the recommended retail prices for the NRMA's standard basket of crash repair parts dropping 22.8% for the Rio and 27.2% for the Carnival.

Similar savings have been applied across the Australian Kia range, for both past and present models.

"Real value for money is not just about how much it costs to buy a car and what you get for that money," said Edward Butler, general manager of Kia Automotive Australia. "It is also about how much it costs to insure, service and repair your car during its life. This is why our parts team has spent months negotiating with Kia to cut prices and then pass these savings on to our owners, whether they have one of the original Mentors or a brand new Cerato. Cuttings parts prices has a direct affect on insuring, servicing and repairing cars and by making these reductions, we have provided owners with another major value for money benefit."

The changes are already having an effect, with the RACV electing the Kia Rio as the Australia's lowest cost car to own in their 2004 survey of ownership costs, improving on its position of second place in the 2003 survey.