Compulsory third party insurance, also known as ‘green slip’ insurance in some states, is a mandatory personal injuries insurance for motor vehicle owners throughout Australia. It’s designed to cover death and injury to any other person involved in a motor accident where you’re at fault.
It’s not an alternative to other types of property damage insurance, where things such as damage to another vehicle or property, or to your own vehicle, are covered. Each state and territory in Australia has different regulations regarding CTP insurance.
CTP insurance is a car insurance scheme that covers your financial liability should you (or another driver of your car) injure someone while driving1. This can include:
Unlike other types of insurance, CTP insurance provides unlimited liability for personal injury caused by, through or in connection with the use of the insured vehicle1. Depending on the circumstances it may cover a range of costs, including the medical treatment, rehabilitation, loss of income, cost of care and support services and general damages (pain and suffering) depending on the injury and whether it is serious enough2.
For fatal injuries, it can also cover funeral costs and financial loss arriving from the death for a surviving spouse, de facto partner or dependents. Each claim is assessed on a case-by-case basis.
Before deciding on a policy ensure you review the Product Disclosure Statement which outlines policy inclusions, exclusions and limitations.
There are situations where no claim can be made against your CTP insurance, for example if the injured person was totally at fault, or if no one was at fault3.
Every state and territory treats CTP a little differently, and Queensland is no exception. While many states automatically include CTP cover as part of your car’s registration fee, Queensland drivers are free to choose their own CTP insurance provider at registration time4.
From 1 October 2000 onwards, Queensland’s Motor Accident Insurance Commission (MAIC) has set the range for CTP insurance prices. Licensed CTP insurers are then allowed to determine their premium rates every quarter within this range5. To sign up, you simply need to compare your options, then nominate your preferred provider on your registration form or renewal notice and pay your fees.
Alternatively, you can choose to nominate your preferred CTP provider and pay for this separately before renewing your registration.
While CTP offers financial protection against injuries to third parties, it doesn’t pay for damage to your vehicle, or to other people’s vehicles or property if you cause an accident. It also doesn’t cover your car against fire, theft or vandalism. If you’d like to be covered for these additional circumstances, then you may need to purchase additional cover.
It’s important to know that choosing not to purchase comprehensive or third party cover on top of your CTP insurance can potentially lead to serious financial consequences.
There are usually three options you may choose to consider.
Third party property insurance can cover damage to other people’s vehicles and property up to policy limits, but not to your own vehicle. As there is no protection included for your own property, the premiums can be lower than other types of insurance.
For added protection, you can upgrade to Third Party Fire and Theft, which can also protect you should your car be stolen or damaged in a fire. It still won’t cover your vehicle should you have an accident or for other events.
Comprehensive car insurance generally covers damage to your own vehicle and other people’s property, as well as theft and some other risks6.
As it covers more than other types of car insurance, the premiums can be higher. Although, sometimes this can be reduced slightly by increasing the cost of your excess.
It’s important to always read the Product Disclosure Statement (PDS) of your policy to get a better understanding of policy inclusions, limitations and exclusions.
With different insurers offering a vast range of benefits, discounts and features, you can do your research to ensure you find cover you are comfortable with.
Compare car insurance quotes from our range of policies and providers the easy way with iSelect online, or call our friendly team on 13 19 20.