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CTP vs Comprehensive Car Insurance
CTP vs Comprehensive Car Insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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What is compulsory third-party (CTP) insurance?
Long story short
CTP insurance handles your liability for injuries or fatalities caused by your vehicle to a third party
Medical costs, hospital charges, rehabilitation, and lost earnings are some the things it covers for the third party.
Comprehensive car insurance covers vehicles and property
It covers you for car repairs, theft, vandalism, or storm damage, plus damage you cause to other vehicles or property.
CTP insurance is mandatory across Australia, but how you buy it varies by state
VIC, WA, TAS, and NT include it in rego, NSW has Green Slips, and QLD, SA, and ACT let you choose your CTP insurer while registering your car.
What is compulsory third-party (CTP) insurance?
CTP insurance is a form of insurance you need to drive legally in Australia. It was first introduced in 1936 in Queensland and is now active across Australia. It protects drivers from potential liabilities if they injure someone in a road accident.
In other words, if you accidentally injure or kill someone while driving, CTP insurance can cover costs related to the other person’s hospital charges, medical bills, rehabilitation, loss of income, and other related expenses, including compensation.
CTP insurance works differently depending on the state or territory where your car is registered:
- Victoria, West Australia, Tasmania, and the Northern Territory bundle CTP insurance into the car’s registration costs.
- Drivers in New South Wales need to get something called a ‘Green Slip’ before they register their car or renew its registration.
- Queensland, South Australia, and the Australian Capital Territory require drivers to choose their CTP insurer while registering their car or renewing its registration.
Did you know?
- In Victoria, Tasmania, and the NT, CPT insurance is a no-fault insurance scheme. That means anyone injured in an accident can claim for medical treatment and rehab costs, including the driver who caused the accident.
- In West Australia, CPT is a strict fault-based system. That means, in most cases, drivers need to prove that the other driver was at fault if they want to seek compensation.
- New South Wales, South Australia, Queensland, and the ACT are somewhere in the middle. That means drivers might be compensated no matter who was at fault, but it depends on the circumstance.
What is comprehensive car insurance?
Comprehensive car insurance is the highest level of car insurance you can get. It offers a broad range of cover for your car and also includes damage that you cause to other people’s cars and property. A run-of-the-mill comprehensive policy can cover:
- accidental damage, whether it was your fault or not
- weather damage due to hail, floods, storms, or bushfires
- theft of your car or damage due to vandalism.
Comprehensive cover can also come with heaps of other benefits and optional extras for added convenience and to save you money on expensive repairs – we’re talking hire car after an accident, reduced- or zero-excess windscreen cover, or (under very specific conditions) a brand-new car to replace one that’s been written off or stolen.
What’s covered can vary from insurer to insurer, so read through the product disclosure statement (PDS) to fully understand how individual comprehensive policies work.
What’s the difference between CTP insurance and comprehensive car insurance?
Think people vs property – compulsory third-party (CTP) insurance relates to people (personal injury or death) while comprehensive cover applies to property (vehicles and property damage).
Digging deeper, here’s how some of the main differences between CTP insurance and comprehensive cover stack up.
CTP insurance covers your liability for costs associated with personal injuries or fatalities caused by your car, such as hospital or ambulance charges or ongoing at-home care.
Comprehensive car insurance covers your car for accidental damage, thefts, and write-offs, as well as damage caused to someone else’s vehicle or property.
CTP insurance does not cover your car for damage or theft, nor any damage you cause to other people’s vehicles or property.
Comprehensive cover is restricted to property damage and isn’t meant to cover your legal liability for personal injury or death.
CTP insurance covers your liability for costs associated with personal injuries or fatalities caused by your car, such as hospital or ambulance charges or ongoing at-home care.
Comprehensive car insurance covers your car for accidental damage, thefts, and write-offs, as well as damage caused to someone else’s vehicle or property.
CTP insurance does not cover your car for damage or theft, nor any damage you cause to other people’s vehicles or property.
Comprehensive cover is restricted to property damage and isn’t meant to cover your legal liability for personal injury or death.
Helpful tip
Thinking about comprehensive cover but not sure about the price tag? You can pay a lower premium and get the all the benefits of a comprehensive policy with a pay as you drive or low-kilometre policy, if you can limit the number of kilometres you travel over the policy period. If that’s not an option, you can choose to pay your premium annually or increase your excess (or both) to save on car insurance costs.
Adrian Bennett
General Manager for General Insurance
Are there other types of car insurance I can get?
When it comes to car insurance, comprehensive cover has all the bells and whistles. But that’s not all that’s out there. There are also a few other options with less coverage.
Third-party property only
You’re covered only for accidental damage your car causes to other people’s cars or property. Any repairs to your own car are almost always out-of-pocket.
Third-party property, fire, and theft
In addition to accidental third-party damage, your car may be covered if it’s damaged or written off due to a fire, or if it’s stolen – this can include a hire car after a theft.
Frequently asked questions
Do I need comprehensive car insurance if I have compulsory third-party (CTP) insurance?
Comprehensive car insurance is optional, but it might be important to you if you reckon your car’s an investment worth protecting. Comprehensive insurance is the only type of insurance that covers your car if you get into an accident where you’re at fault. Essentially, it provides that added protection for your car and more peace of mind for you.
Does comprehensive car insurance include CTP cover?
No. CTP insurance and comprehensive car insurance are completely different in what they cover and even how you get them. In some instances, you might be able to get both from the same insurer, but they’ll still be separate policies.
Is comprehensive car insurance compulsory?
No. Unlike CTP insurance, comprehensive car insurance is not compulsory – unless your car is on finance and your lender requires you to take out a comprehensive policy to protect their financial interest.
Is it important to compare car insurance before buying a policy?
Not all policies are created equal, and you don’t want to be in a ‘too little too late’ situation that leaves you wishing you’d opted for a policy with more coverage. That said, regardless of the level of cover you’re after it’s always a good idea to compare policies and suss out their cost-to-value proposition. In other words, cheapest isn’t necessarily best.
While we can’t help you compare compulsory third-party car insurance, you can use our car insurance comparison tool to weigh up comprehensive or third-party car insurance policies from a range of providers before deciding how your money is best spent. And if you’re happy with one, you can switch in a matter of minutes!
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