Compulsory Third Party (CTP) Car Insurance

What is CTP Insurance?

CTP (Compulsory Third Party) insurance, also known as CTP green slip insurance in New South Wales, is mandatory for all registered vehicles in Australia.

 It covers the driver’s legal liability for injuries or death caused to others in a motor vehicle accident. Without CTP insurance, you cannot register your vehicle.

What does CTP insurance cover?

CTP insurance generally covers medical treatment and rehabilitation costs for injured third parties, compensation for lost income due to injury, and, in some cases, compensation to families of deceased victims.

Most CTP insurance policies typically do not cover damage to your own vehicle or other vehicles, or damage to property. However, there are two main types of CTP and third party insurance cover – no-fault CTP and at-fault CTP. No-fault CTP is generally available in NSW, VIC, SA, ACT, NT, and TAS. While coverage specifics may differ between policies, no-fault CTP typically covers: 

• All injured parties, regardless of who caused the accident.

• Compensation may include medical expenses, rehabilitation, lost income, and ongoing care.

• Some exceptions may apply, such as if the at-fault driver is convicted of a serious driving offence.

At-fault CTP is typically available in QLD and WA. While coverage specifics may differ between policies, at-fault CTP typically means:

• The at-fault driver is not covered for their own injuries (except in certain cases).

• Injured parties must prove another driver was at fault to make a CTP insurance claim.

• WA has a Catastrophic Injuries Support (CIS) scheme, which may provide some coverage for at-fault drivers with severe injuries.

• QLD has a National Injury Insurance Scheme (NIIS), which may provide limited treatment cover for eligible injuries.

State and Territory Variations in CTP Insurance

Each state and territory in Australia manages CTP insurance differently. In most states, it is included in the vehicle registration fee. However, in New South Wales, it must be purchased separately before registering a vehicle.

Differences Between CTP and Other Car Insurance Types

While CTP insurance is generally the only insurance you must have, you can choose to take out other types of car insurance policies that cover damage to your car and other people’s property.

Where Can I Buy CTP Insurance?

Some states allow you to choose your CTP insurance provider (see table above), while others automatically include it in the registration fee.

1. Determine your state’s CTP insurance requirements.

2. If you need to purchase a separate CTP policy, compare licensed CTP insurance providers in your state.

3. Purchase your chosen policy before registering your vehicle (NSW).

Importance of Comparing CTP Insurance Providers

Comparing CTP insurance providers can help you find the best CTP insurance policy for your needs. While all providers typically offer the same mandatory coverage, there may be differences in pricing and additional benefits.

• Premium differences: Some providers may offer cheaper policies.

• Additional benefits: Some insurers provide extra coverage options.

• Claims handling reputation: Research customer reviews and insurer ratings.

And remember, a CTP insurance comparison shouldn’t be all about price alone. Cheap CTP insurance may not be the best fit for you.

Frequently Asked Questions

How do I make a CTP insurance claim? In NSW, QLD, SA, and ACT, you must typically identify the at-fault driver's CTP insurer and submit a claim form with any required supporting documents such as medical reports. In VIC, WA, NT, and TAS, claims are generally handled by government-managed CTP schemes.

Do demerit points affect CTP insurance? While demerit points do not directly impact CTP insurance, your driving history may influence your ability to obtain other types of insurance.

Does comprehensive car insurance include CTP? No, CTP insurance is separate from comprehensive insurance. Comprehensive insurance covers damage to vehicles and property, while CTP insurance covers personal injury claims.

Do you need CTP and comprehensive insurance? CTP insurance is mandatory, while comprehensive insurance is optional. It's a good idea to buy comprehensive insurance if you want to cover damage to your car and other people’s property.  

What does CTP insurance cover in South Australia? It typically covers injuries to third parties but does not cover vehicle or property damage.

Additional Resources

• Get more info about choosing the right car insurance

• Calculate the payout value of a CTP claim

• Find out how to make a complaint against your insurer 

Sources

MoneySmart

QBE

GIOSuncorp

Youi

Paul Coughran is the General Manager of Emerging Verticals at Compare Club. Paul has over 20 years of experience across a wide range of industries including Banking and Finance, Telecommunications and Energy. Paul leads a team of trusted experts dedicated to helping individuals make informed decisions about their insurance and utilities needs.

Meet our car insurance expert, Paul Coughran

Paul's top car insurance tips:

• 1

  Regularly compare your insurance policies – You could be paying for cover you don’t need. Shopping around every so often can save you a fair bit, maybe even hundreds each year.

• 2

  Don’t just look at the premium—check the excess too. While a higher excess might bring down your premium, remember you’ll have to fork out more if you do need to claim.

• 3

  Double-check what’s included in your policy. Extras like windscreen cover or roadside assistance might not be part of the deal and could cost you more.

• 4

  If you don’t drive much, consider usage-based insurance. Some policies base your cost on how much you actually drive, if you work from home or only use your car for short trips this might be a much better option.