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Compulsory Third-Party (CTP) Insurance
Compulsory Third-Party (CTP) Insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Toby HagonCompare car insurance policies the easy way
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What is CTP insurance and what does it cover?
Long story short
CTP goes by many names
In NSW, it’s called a Green Slip. Top Enders call it the MAC Scheme. Some states include CTP in your rego, while in others you need to choose your CTP insurer.
CTP insurance covers injuries to third parties in a road accident
Third parties can include pedestrians, cyclists, passengers and other drivers.
CTP doesn’t cover car or property damage
Think ‘people, not property’. In certain cases, CTP might also not be able to cover you if you caused the accident.
Rules differ between states
Though CTP is compulsory across Australia, the rules can vary. In some states, you’re covered even if you’re considered at fault. In others, you’re not.
What is CTP insurance and what does it cover?
As the name suggests, it’s compulsory to have CTP insurance if you want to take your car, motorcycle, truck, or nearly any other vehicle out on the road. However, depending on which part of Australia you call home, you might know it as something different. For instance, in NSW, it’s more commonly called a Green Slip. Or if you’re a Top-Ender, the MAC Scheme.
Given that car accidents can involve more than just the car and driver, CTP insurance helps cover compensation for any third parties injured or killed in an accident with your vehicle. Cyclists, passengers, pedestrians, motorcyclists, and other drivers all fall into this ‘third-party’ category. CTP insurance can then help with care and treatment costs, as well as loss of earnings and compensation for pain and suffering. If you caused the accident, or even if there are a few questions about who’s to blame, then your eligibility for compensation or the amount you receive may depend on your state’s approach to at-fault and no-fault accidents.
CTP insurance explained
Learn what CTP is, what it means in different Aussie states and territories, and how you can go about getting added protection for what CTP doesn’t cover.
What doesn’t CTP insurance cover?
When it comes to CTP, it helps to remember ‘people not property’. You’re not going to be covered for damage to anything other than personal injury to the third parties themselves. This means that your car, other cars, and any property that got tangled up in the accident won’t be covered. To get more coverage, you might want to look into further car insurance, like third-party property insurance or comprehensive car insurance.
Is CTP Insurance the same across every state?
Short answer – no. There are some nuances worth knowing when it comes to how states and territories ‘package’ their CTP insurance. For instance, if you live on the east or south coast, you’ll likely be able to choose your insurer. That is, unless you live in Victoria. For Victorian drivers, your CTP premium from the Transport Accident Commission will come wrapped up in your rego. Keeping things simple with a set provider isn’t uncommon, though – this is basically how everywhere else in the country handles it, from Tassie to the NT.
There’s also the question of what CTP covers and how much you pay for it. This can differ depending on where your vehicle is registered. Queensland, South Australia, and Western Australia tend to offer CTP benefits only to accident victims and not the person who caused the accident. It’s not as heartless as it appears, though! In cases where an accident causes serious or catastrophic injuries, all parties involved can get the assistance they need – if not from CTP, then through other government schemes.
Click on this interactive map to explore more information on CTP insurance for your state or territory.
Helpful tip:
In some states and territories, you can’t choose your CTP insurance, but in NSW, QLD and the ACT you can shop around – something that could save you hundreds of dollars. But make sure you read the product disclosure statement (PDS) for exclusions and incentives. In some cases, insurers may offer extras such as protection for at-fault drivers – which is worth considering in states or territories where drivers at fault are not protected by CTP.
Toby Hagon
Motoring Journalist
How much does CTP insurance cost?
Like any other type of insurance, you’ll be paying a premium to get that CTP coverage. How that premium amount is decided, once again, comes down to your location. For instance, in QLD, your CTP premium is mostly about the class of vehicle you drive, along with when your CTP is due and a levies and admin fee to help keep the whole thing running. In SA, on the other hand, they look closely at where your vehicle is garaged, besides the type of vehicle, what you use it for, and if you’re eligible for an input tax credit (ITC) for your CTP under GST law. That was quite the trio of acronyms!
Thankfully, no matter where you live, doing all the sums for your premium isn’t your job. The insurer handles that. The following figures should give you an idea of how much CTP insurance will cost you across Australia’s capital cities.
Note: These premiums are for drivers of passenger vehicles (excluding ITC-eligible drivers). Data retrieved January 2025
Is CTP included in my registration?
If you’re suddenly worried that maybe you’ve been driving around CTP-free, chances are you’re in the clear. Most Australians actually pay their CTP premium as part of their rego fee, even if they’re picking their insurer.
| ACT | Yes |
| NSW | No |
| NT | Yes |
| QLD | Optional |
| SA | Yes |
| Tas | Yes |
| Vic | Yes |
| WA | Yes |
Do I need to get additional car insurance?
Legally, you’re good to go once you’ve got CTP. But you might find it a little easier to sleep at night if you investigate some more coverage.
Remember, CTP doesn’t cover you for vehicle or property damage, so if you were to get in an accident, you’d be paying out of pocket for the repair of your car and potentially any other damaged property. If you drive a clunker or recently won the lottery, this might not be a concern for you, but we reckon you’d rather not be footing the bill all by your lonesome, especially if you cause an accident with a Rolls Royce – ouch!
Frequently asked questions
How does CTP renewal work?
Across most of Australia, you pay for your compulsory third-party (CTP) cover when you pay your rego. That’s because your CTP insurance premium is included in your registration costs. This even applies in states and territories where you have the option of choosing your CTP insurer – except when it comes to NSW.
As a NSW driver, you need to purchase or renew your CTP insurance (aka Green Slip) separate from your car registration. And this must be done before registering your vehicle or, if renewing, within 21 days of your rego’s expiry date.
What risks are there if I don’t have CTP Insurance?
Whether you intend to be a smooth criminal or not, it’s illegal to drive your car without compulsory third-party (CTP) insurance. If you’re picked up by highway patrol, you could find yourself handing over a fair chunk of change and even have your car taken away. And this is if you’re lucky.
If you were to get into an accident, you could get left with triple the whammy of paying fines, the costs incurred by the third party, and any compensation too. Even the most carefree gamblers in Las Vegas would have to admit that it’s probably not worth taking that risk.
Thankfully, your CTP is usually covered by your rego – except in NSW. So, if you’ve been putting off renewing it, now might be the time to check it off your to-do list.
Does my CTP cover me when I’m driving interstate?
If you’re a keen road tripper, you can enjoy a little peace of mind knowing your compulsory third-party (CTP) coverage extends across the country. But how this plays out may depend on which state or territory the accident occurred in, along with whether you were at fault or not. It could be worth brushing up on what the local CTP scheme covers or even stepping up your coverage from just CTP.
Does CTP cover car damage?
No, it doesn’t.
Remember ‘people, not property’. Because that’s what compulsory third-party (CTP) insurance is all about. If you are involved in an accident that causes damage to someone else’s vehicle or property, CTP insurance is not meant to cover it.
Instead, you should be looking at higher levels of cover such as comprehensive car insurance or third-party property insurance for that added protection and peace of mind.
What’s the difference between CTP and other third-party car insurance?
You could say that it’s a question of ‘who’ versus ‘what’.
Compulsory third-party (CTP) insurance helps cover any personal injuries or deaths that result from a motoring or road incident. It’s a must-have when you’re driving in Australia which is why it’s usually included in your vehicle’s rego.
Third-party car or property insurance is not mandatory, but it can prove useful to have. That’s because it helps cover you for the damage you’ve caused to somebody else’s car or home in an accident. This cover can also include any legal costs that arise from the incident.
Where can I compare car insurance?
If you want to add a little more grunt to your car insurance that CTP just can’t provide, iSelect can help. Using iSelect’s comparison tool, you can browse car insurance options from a selection of insurers and get more protection on and off the road.
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