CTP Insurance Victoria

What is CTP Insurance?

CTP insurance stands for Compulsory Third Party Insurance and in Victoria, it is included in the cost of your vehicle registration.¹

Do I need CTP insurance in Victoria?

The short answer to this question is, yes. As the name suggests, CTP Insurance is compulsory.  In Victoria, CTP refers to the Transport Accident Charge.² It covers you for any personal injuries to or death of another person as the result of an accident involving your vehicle.³ 

Bear in mind that this is the most basic, minimum requirement of car insurance and will not protect you against damage to your car or any other vehicle or property involved in an accident.⁴ 

How do I get CTP Insurance in Victoria?

Unlike some other states, Victorian drivers don’t have a choice when it comes to their CTP Insurance provider.  

Instead, the premium is included in your annual registration renewal fee and goes directly to the Transport Accident Commission (TAC).⁵ 

The charge appears on your VicRoads renewal notice as 'TAC Premium' or, in some places, 'TAC Charge'. 

When you register your vehicle for the first time, VicRoads will determine what TAC charge you need to pay. 

The cost of your premium will vary according to several factors, such as:⁶ 

• Type of vehicle. 
• Registered owner (a discount may apply for eligible pensioners). 
• Intended use. 
• Seating capacity. 
• Carrying capacity. 
• Garaged location, which is determined by your postcode and will be one of three designated risk zones – high, medium or low. 

An insurance duty set by the State Revenue Office is also included in the TAC charge.⁷ 

How much does CTP Insurance cost in Victoria?

As explained above, the costs will vary depending on several factors.  

As an example, though, from 1 July 2022 the cost of CTP Insurance for a standard passenger vehicle in a medium risk zone is $496.10 per year. This includes the TAC charge, insurance duty, and GST.⁸ 

The TAC charges are indexed by the Consumer Price Index (CPI) on the 1st of July each year,9 so keep this in mind if you’re wondering why your rego’s gone up again!

What does CTP cover in Victoria?

CTP from the TAC will help cover you for injuries which are the result of driving a car, motorbike, bus, tram, or train, and can help support you if you’re injured in a transport accident as not only a driver, but a passenger, pedestrian, motorcyclist, or cyclist.¹⁰ 

The CTP you pay not only goes towards compensating people who have been injured or killed in road accidents, but also helps fund accident prevention campaigns.¹¹ 

Compensation includes the reasonable cost of medical treatment, disability support, rehabilitation, income assistance, travel and household support. On average, the TAC provides financial assistance to more than 45,000 injured Victorians in the form of treatment and income support while they get their lives back on track after accidents.¹² 

However, it’s important to note that CTP Insurance does not provide cover for damage to property, your vehicle, or any other vehicles. It also does not cover you against fire, theft or vandalism. 

For this reason, it’s a good idea to consider taking out Comprehensive Car Insurance, Third Party Fire and Theft, or Third Party Property Insurance in addition to CTP. 

What if my vehicle isn’t registered in Victoria?

• Any vehicle with current registration in another Australian state is automatically covered in Victoria by its state or territory’s relevant CTP Insurance policy.¹³ 
• If your vehicle was registered and imported from overseas, it must have CTP cover before being driven on a public road in Victoria.¹⁴ 
• If your car is unregistered and you’re involved in an accident with it on private land, the TAC won’t pay any benefits to any injured person or driver involved.¹⁵ 

Is CTP all I need? 

Most likely, no. Remember, while CTP covers the cost of medical bills as a result of an accident, it won’t cover the cost of the damage to your car or any others involved in an accident.  Get peace of mind with Comprehensive Car Insurance, Third Party Fire and Theft, or Third Party Property Insurance. 

Start comparing Car Insurance policies now, or call iSelect on 1800 784 772 and let us help find you a policy from our range of policies and providers at a price that fits your budget. 

^{Sources:
1 VicRoads – What does my rego pay for?  
2 Transport Accident Commission - Transport Accident Charge  
3 Transport Accident Commission - Indemnity provided by the transport accident charge
4 Moneysmart - Choosing car insurance 
5 Transport Accident Commission - Transport Accident Charge 
6 As above. 
7 As above. 
8 Transport Accident Commission - Transport Accident Charges including GST and duty, page 3. 
9 Transport Accident Commission - Transport Accident Charge, Why has my TAC charge increased? 
10 Transport Accident Commission - What we do 
11 As above. 
12 Vicroads - What does my rego pay for? 
13 Transport Accident Commission - Who can make a TAC claim?, Interstate accidents 
14 Australian Government Department of Infrastructure, Transport, Regional Development, Communications and The Arts - 8 steps to importing a vehicle 
15 Transport Accident Commission - Uninsured and Unregistered Vehicles - Accidents on Private Land}