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Compulsory Third-Party (CTP) vs Third-Party Car Insurance
Compulsory Third-Party (CTP) vs Third-Party Car Insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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Long story short
Compulsory third-party (CTP) insurance is mandatory and covers people, not property
It covers other people’s medical costs and compensation after an accident you cause.
CTP insurance rules and how you pay for your policy vary by state
In some states, you can receive medical benefits even if you caused the accident.
Third-party property insurance covers damage to other people’s stuff
It can pay for repairs to vehicles or property you damage, but it won’t cover injury or death.
Third-party property, fire and theft insurance covers your own car in some instances
It includes everything in third-party property, plus coverage for your car if it’s stolen or damaged by fire.
What is compulsory third-party (CTP) insurance?
CTP insurance is a mandatory form of insurance that’s required by law – hence the ‘compulsory’ in the name, so there’s no room for doubt! If you own and drive a registered car anywhere between the Top End and Tassie or Cape Byron and Shark Bay, CTP insurance is an essential part of your car’s rego.
Overall, CTP insurance covers a driver’s financial liability for personal injury or death caused by the car they’re driving. A typical CTP insurance policy can cover medical bills, lost income, and sometimes at-home care. Generally, these benefits apply to:
other drivers
passengers of your car or other cars
cyclists, motorcyclists, and pedestrians
in some states and some cases, the at-fault driver.
Overall, CTP insurance covers a driver’s financial liability for personal injury or death caused by the car they’re driving. A typical CTP insurance policy can cover medical bills, lost income, and sometimes at-home care. Generally, these benefits apply to:
other drivers
passengers of your car or other cars
cyclists, motorcyclists, and pedestrians
in some states and some cases, the at-fault driver.
Does CTP insurance work differently across Australia?
Yes, it does. How CTP insurance operates can depend on where in Australia you’re driving – it can even go by different names.
Some states include CTP insurance in your car’s registration costs while others may need you to buy car insurance separately or along with your car registration.
Here’s a quick rundown of the states and territories and their CTP insurance schemes.
Victoria
In the Garden State, CTP insurance is built into your registration costs as the Transport Accident Commission (TAC) charge or TAC premium. Costs generally depend on the registration period, the type of vehicle, and the risk associated with your postcode.
Victoria’s scheme operates on a no-fault basis. That means it provides benefits to anyone injured or killed in transport accidents, whether they were at fault or not. It also covers tram and train accidents, plus Victorians travelling interstate.
New South Wales
In NSW, CTP insurance goes by the name ‘Green Slip’, and you buy one before your register your car or renew its rego. Premiums can depend on your age and gender, your driving and claims history, other levels of car insurance, where your car is garaged, and more.
Green Slip is a no-fault scheme, meaning it covers the driver and all third parties (pedestrians, passengers, cyclists, and motorcyclists) injured or killed by a NSW-registered vehicle. It doesn’t matter whether the crash happened within or outside NSW.
Queensland
In the Sunshine State, you can choose your CTP insurer and pay your premium when you register your vehicle or renew its registration. Queensland’s Motor Accident Insurance Commission (MAIC) sets a range for premiums and allows insurers to specify rates within this range.
QLD has an at-fault scheme, meaning that drivers injured in an accident they were solely responsible for are not covered – and the same applies if the accident was nobody’s fault. Drivers who were partially at fault might receive reduced coverage.
Australian Capital Territory
In the ACT, you must buy Motor Accident Injuries (MAI) insurance when you pay your rego. You can choose from multiple insurers, and premiums are based on the type of vehicle you drive.
The no-fault CTP insurance scheme in the ACT covers any person injured in a motor accident, no matter who’s at fault, or even if no one was at fault. If you cause an accident interstate, your MAI insurance policy can cover compensation for anyone you’ve injured, but not for your own injuries.
Northern Territory
In the Top End, CTP insurance is included in your registration fee as the Motor Accidents Compensation (MAC) Scheme. It’s administered privately by the Territory Insurance Office (TIO), a division of Allianz Australia.
The NT’s no-fault MAC Scheme covers all road users injured or killed in a motor vehicle accident, no matter who was at fault. That includes drivers, passengers, pedestrians, motorcyclists, and cyclists. Interstate accidents involving NT residents and NT-registered vehicles are also covered.
South Australia
In South Australia, you can choose your insurer and pay for your CTP insurance when renewing your vehicle’s registration. The type of car you drive, what you use it for, and where it’s garaged largely determine your policy’s price tag.
SA’s CTP insurance scheme is fault-based – so it doesn’t cover the injuries of drivers who were at fault or accidents that weren’t anyone’s fault. It does cover your liability for any injuries or deaths caused by your vehicle, either in SA or interstate.
Tasmania
As a Tassie driver, you pay a Motor Accident Insurance Board (MAIB) insurance premium as part of your registration renewal. How much you pay mostly depends on the type of vehicle you drive. But either way, according to the MAIB, you get to enjoy the most affordable CTP insurance in the country!
Thanks to Tasmania’s no-fault rules, anyone injured in a motor vehicle accident in Tasmania or interstate involving a TAS-registered vehicle can receive CTP insurance benefits – whether they were at fault or not.
Western Australia
In WA, you pay for Motor Injury Insurance at the time of registering your car. This includes CTP insurance and, for more serious injuries, the Catastrophic Injuries Support Scheme. Typically, your premium depends on the type of vehicle you drive.
Western Australia’s fault-based scheme doesn’t cover drivers for any non-catastrophic injuries they sustain in an accident that was their fault (or nobody’s). The scheme covers injuries caused by a WA-registered vehicle to other road users anywhere in Australia.
What is third-party car insurance?
In a way, knowing what compulsory third-party (CTP) insurance is (and does) might clue you in to what third-party car insurance is (and does). Here’s a hint: one covers what the other doesn’t.
Without further ado, third-party car insurance covers damage to other people’s property if you (or someone driving your car) causes an accident. Sometimes, a third-party car insurance policy might even cover your car if it’s damaged by an uninsured driver.
There are two main types of third-party car insurance, third-party property and third-party property, fire, and theft.
Third-party property
A standard third-party property policy is designed to cover damage caused by your car to other people’s property. This can include vehicles and even things like fences, garage doors, and expensive garden sculptures! It can also cover legal costs if someone sues you for damage you’ve caused.
What it won’t cover is personal injuries or fatalities caused by your car – that’s what CTP insurance is for. And unlike comprehensive car insurance, your third-party property policy also won’t cover any damage to your own car.
Third-party property, fire, and theft
A third-party property, fire, and theft policy covers what a standard third-party property policy does, plus a little extra on the side. It covers your car if it’s stolen or damaged by fire. Sometimes, it might also cover towing costs and a hire car following a theft.
While it’s a bit of a step up from third-party property car insurance, your third-party property, fire, and theft policy doesn’t usually cover damage to your own car. It also doesn’t include cover for personal injury or deaths caused by your car (you’re looking at CTP insurance for that).
Helpful tip
If you’re keen on higher levels of protection for your car, a third-party property, fire, and theft policy might tick some boxes – especially if you’re concerned about your car being stolen. But you’re going to end up feeling robbed regardless if Mother Nature pulls a fast one with a hailstorm or if, say, an unidentified driver damages your car. For that ultimate cover and priceless peace of mind, consider getting a comprehensive policy so you don’t have to worry about an eye-watering repair bill out-of-the-blue.
Adrian Bennett
General Manager for General Insurance
What’s the difference between CTP insurance and third-party car insurance?
| CTP insurance | Third-party car insurance | |
| Covers personal injury or death | |  |
| Covers damage you cause to other people’s property | | |
| Is legally required to register and drive your car | | |
| Works differently between states | | |
| Can be transferred to another car | | |
How CTP insurance and third-party car insurance work
You rear-end another car
- CTP insurance helps cover your liabilities for any injuries the other driver or any passengers suffer.
- Third-party property or third-party property, fire, and theft insurance help pay for repairs to the other car.
- Unfortunately, you’ll have to go out of pocket to repair your own car (to cover this, you’d need comprehensive insurance).
You drive into a fence
- A third-party property or third-party property, fire, and theft policy can help pay for the repairs to the fence.
- If nobody is injured, CTP insurance won’t apply.
- Damage to your car won’t be covered, unfortunately (you need comprehensive insurance for that).
Your car is hit by an uninsured driver
- If you or any passengers are hurt, the other driver’s CTP insurance can step in and help cover your medical costs.
- Assuming the uninsured driver is completely at fault, your third-party car insurance policy might cover you up to a certain amount for damage to your car, say $5,000. (You’ll need to get the other driver’s details.)
Your car is stolen
- A third-party property, fire, and theft policy can pay you out for the market value of your car at the time it was stolen.
- If your car is recovered with some damage, your third-party property, fire, and theft policy might be able to cover the damages if your claim is still open.
- Unfortunately, third-party property car insurance won’t be able to help, and CTP insurance doesn’t apply if no one was injured.
What type of insurance covers damage to my car?
If you want maximum protection for your car, you could consider comprehensive car insurance, as it offers the highest level of cover – including damage to your car regardless of who’s at fault.
A good way to start your search is to compare comprehensive policies against each other. Instead of manually comparing multiple providers, you can use a comparison tool to see how their features and premiums stack up against each other. On top of this, it’s a good idea to check the product disclosure statement (PDS) so you’re fully aware of exactly what you’re covered for.
If you’ve made your choice, it’ll take us a matter of minutes to set you up. And you won’t be paying more than you would if you bought the policy directly from the insurer.
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