Compulsory Third Party (CTP) Insurance is mandatory in Australia before you can register your vehicle – it’s a legal requirement for all car owners. While cover can vary state-to-state, it generally covers you, or anyone who drives your vehicle, for injuries caused to passengers and other road users in an at-fault motor accident. In Victoria, South Australia, Queensland, Western Australia, Tasmania, and the Northern Territory, your registration will include this insurance cost. However, in the Australian Capital Territory, you’ll need equivalent Motor Injury Accident Insurance.
It’s easy to confuse Compulsory Third Party (CTP) with Third Party Property Damage (TPPD) car insurance and Comprehensive Car Insurance. That’s why we’ve put together this guide to help you differentiate between them.
What is CTP insurance?
CTP Green Slips in NSW
Heard the term Green Slip? CTP is known as a Green Slip in New South Wales (NSW). Unlike CTP in other states, you must buy a NSW CTP Green Slip before you can register your vehicle, and it covers the liability of anyone who drives your vehicle for injuries and death caused to other parties in a motor vehicle accident anywhere in Australia.
Since 1 December 2017, a Green Slip can also provide certain limited statutory benefits to anyone who drives your vehicle if injured and at fault in a motor vehicle accident.
As long as your vehicle’s registered in NSW, the Green Slip covers the driver of your vehicle for injuries caused to other parties in a motor vehicle accident 24 hours a day, Australia wide.
What is TPPD Insurance?
Third Party Property Damage (TPPD) Insurance, also known as Third Party Car Insurance, covers your liability to pay for damage you may cause to someone else’s car or property. This also covers reasonable legal costs and expenses from relevant court proceedings. Unlike CTP, which covers your liability to pay for injuries caused to other people, this insurance covers damage to other people’s cars or property. Damage to your own car is not covered. If you don’t have either Comprehensive or TPPD Insurance, all costs (including damage to your own vehicle, damage to other people’s cars or property) will be an out-of-pocket expense if you’re in an accident and are at fault.
What is Comprehensive Car Insurance?
Comprehensive Car Insurance covers your car, as well as damage you cause to other people's cars or property.
It includes cover for accidental damage and for damage to your vehicle from weather events such as hail, storms, floods and fires.
How is CTP different to Third Party Property Damage and Comprehensive?
Here’s a summary of the differences between CTP and Third Party Property Damage and Comprehensive Car Insurance:
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Comprehensive
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Frequently asked questions
CTP is not the same as Car Insurance. CTP generally provides cover for compensation and statutory benefits relating to injuries or death arising from motor vehicle accidents. It doesn’t cover damage to cars or property.
CTP doesn’t cover damage to cars or property. You may wish to consider whether car insurance is right for you. At Allianz we offer Third Party Property Damage Car Insurance (which covers damage to other people’s cars and property), Comprehensive Essentials Car Insurance and Comprehensive Car Insurance (which can cover damage to your car and other people’s cars and property).
Yes. Third Party Property Damage Car Insurance is usually cheaper because it covers less.
CTP is mandatory. Car Insurance is not, and at Allianz we offer Third Party Property Damage Car Insurance, Comprehensive Essentials Car Insurance and Comprehensive Car Insurance.
Disclaimer
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
The information contained in this article is general information only. It is not meant to be legal advice and should not be treated as such.
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Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.
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