What Does CTP Car Insurance Really Cover?

We’ve written this brief guide to answer the question of what CTP car insurance really covers. If you own a car in Australia, you are going to need Compulsory third-party (CTP) insurance. This type of insurance is also known as a Green Slip (especially in NSW). It is mandatory for anyone who drives a vehicle in any state or territory within the country. CTP can be confusing for those who might not be familiar with it, such as people who have recently moved from overseas or bought a car for the first time.

We hope it helps you understand it better!

What exactly is Compulsory Third Party (CTP) Insurance?

You’ll find a more detailed overview of what CTP insurance covers here.

However, in layman’s terms, it is a type of insurance that covers liability for personal injury which might occur if a driver is involved in a car accident.

Broadly speaking, it provides drivers with cover against claims made by anyone who might have been injured during the collision. This could include medical expenses, rehabilitation treatments, and loss of wages.

Unlike Comprehensive or Third Party Car Insurance, CTP insurance does not cover you for any damage that occurs to vehicles or property. It purely covers you against liability for injury or death that might have occurred whilst you were driving. (With the exception of potentially serious driving offences). Therefore, to be covered for these situations, you’ll need to take out these extra policies.

It is worth remembering that CTP insurance’s specifics may vary between the various territories and states in Australia. Therefore, it is your responsibility as a driver to establish what level of coverage it provides you where you live.

How does CTP car insurance vary between States and Territories? 

Depending on what part of Australia you live in and who you get it from, what you are covered by CTP car insurance will differ.

However, here is what you can expect.

Queensland

Drivers in Queensland can get CTP insurance from four licensed providers, which they can either choose when registering their vehicle or change at any point during the active registration online.

If they do the latter, it will become effective at the beginning of the next registration period.

New South Wales

In New South Wales, CTP insurance is obligatory before registering your car, and you can buy it from six licensed companies.

While they all offer the exact same level of primary protection, the additional cover options available with them vary.

It is worth noting that New South Wales operates a ‘no fault’ CTP scheme. The scheme covers injured third parties, such as passengers, pedestrians, motorcyclists, and cyclists, regardless of whose fault the accident was, for everything from medical treatment to ongoing care.

Victoria

This insurance is included within your vehicle registration in Victoria and is referred to as the ‘Transport Accident Charge’. Like in NSW, it operates on a ‘no-fault’ scheme; the state government provide it through its Transport Accident Commission (TAC).

If you suffer injury as a result of a road accident anywhere in Victoria, you will be able to make a TAC claim to pay for any treatment and support you need, whether you were deemed at fault for the accident or not.

South Australia 

Currently, drivers in South Australia can choose between five separate insurers who are all government approved.

You can do this when you take out or renew a registration. Alternatively, if you are a direct-debit customer, you can log on to mySAGOV at any time to change insurers. However, that modification won’t kick in until you are due to make your next payment.

Other States and Territories 

Elsewhere, the ACT runs a ‘no-fault’ CTP initiative, which was introduced as the Motor Accident Injuries Scheme in 2202.

Similarly, Tasmania and the Northern Territory operate similar measures that are covered by the car registration fee. These are under the Motor Accidents Insurance Board and Motor Accidents Compensation (MAC) Scheme, respectively.

In Western Australia, there is a ‘fault’ scheme that only covers ‘catastrophic injuries’ incurred by drivers who are deemed at fault. This type of CTP insurance kicks in when you register your car.

How much is Insurance?

The cost of insurance will vary depending on several factors, including your location, age, who you are getting the insurance from, and vehicle type.

For instance, a Porsche Cayenne Turbo costs a different amount than a Holden Astra.

According to Forbes, who contacted certain jurisdictions via their websites and ran a number of quotes, the amount you can expect to pay as of February 2024 is as follows:

ACT – $399.20 to $414.20

NSW – $432 to $481

NT- $669.25

Qld – $369.60

SA – $264.62 to $269.93

Tas – $309

Victoria – $430.10 to $552.20 (depending on if you are in a low, medium or high-risk zone)

WA – $479.40

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