Compulsory Third Party (CTP) Insurance in South Australia

What is CTP Insurance and why do I need it?

When you get down to it, CTP Insurance offers financial protection. It provides cover if you (or someone driving your car) gets into an accident which injures or kills someone else.¹Government of South Australia – Vehicle Insurance

Whenever you’re on the road, there’s always a risk of an accident. Then there’s the chance that you’ll need to pay thousands of dollars in medical costs and lost income should you injure someone else. But with CTP Insurance, these costs will usually be covered by your insurer. Part of the reason it’s mandatory in all states and territories is to make sure the people who get injured on the road can get compensated.^{2CTP Insurance Regulator – CTP insurance for a brand new vehicle fact sheet}

What does CTP Insurance cover?

For people injured in a car accident, CTP Insurance can offer compensation for medical costs, loss of income and compensation for pain and suffering.^{3CTP Insurance Regulator – How does motor vehicle accident insurance work in South Australia?}

However, the rules surrounding CTP Insurance are also a little different for each state and territory.

Some states, such as Tasmania⁴Motor Accidents Insurance Board – About the MAIB and Victoria,^{5Transport Accident Commission – What is a TAC claim?} work on a ‘no fault’ basis. In these states, even if you’re the one who caused the accident, you’ll still be covered for medical costs and rehabilitation if you’re injured.

This isn’t the case with South Australia.

In fact, if you get injured in a car accident that was your fault, you might not be eligible for any compensation. For instance, South Australia’s CTP Insurance scheme does not:^{6CTP Insurance Regulator – How does motor vehicle accident insurance work in South Australia?}

• Provide full compensation to people who contribute to their own injuries (e.g. drivers or passengers who weren’t wearing seatbelts)
• Compensate an injured driver who is entirely at fault
• Compensate an injured driver for accidents where nobody else was involved or at fault (e.g. hitting a wild animal)
• Cover damage to vehicles
• Cover loss or damage to property

CTP Insurance will always cover children under 16 years old for medical treatment if they’re injured in a car accident—no matter who was at fault.^{7As above}

How does CTP Insurance work in SA?

South Australia is one of the states that lets you choose your own CTP policy. There are currently five different insurers—NRMA, AAMI, Allianz, Youi and QBE—who each offer CTP Insurance.^{8CTP Insurance Regulator – CTP Insurers}

In the past, CTP Insurance was offered exclusively by the Motor Accident Commission (MAC).^{9Government of South Australia | Department of Treasury and Finance – Private provision of the Compulsory Third Party Insurance Scheme} This all changed in 2016 when new legislation took effect and the government allowed private insurers to start offering CTP.^{10CTP Insurance Regulator – CTP Scheme}

Now, insurers can set their own premiums (within limits). This lets them compete with each other over your business.^{11As above}

So, what does all this mean for you? Basically, different CTP insurers can charge different prices and offer their own benefits. You can now compare the premiums and features that each policy offers.

How do I get CTP Insurance in SA?

Let’s be honest, the last thing anyone wants to deal with is extra admin. Buying a car already involves a lot of paperwork. Who wants to add a big insurance kerfuffle on top of that?

Fortunately, when you buy a new car in SA, you’ll automatically have CTP Insurance attached.^{12CTP Insurance Regulator – Purchasing CTP} Even better, your premium will be the cheapest one available at the time of registration. However, since different types of vehicles attract different premiums, the price will also be based on your vehicle class.

The same goes for buying used cars. The remaining registration and CTP Insurance for the vehicle gets handed over to you. You’ll also be able to choose a different insurer when you renew the registration.^{13As above}

How do I renew my CTP Insurance?

In South Australia, CTP Insurance is tied to your registration, which can be renewed for either 3 or 12 months. You can do this a few different ways, including:^{14Government of South Australia – Renew vehicle registration}

• Online via mySAGOV or the Government of South Australia’s website
• Calling vehicle registrations & renewals
• By post to Service SA
• By visiting a Service SA customer service centre

You’ll pay for your CTP Insurance every time you renew your registration. That’s also when you’ll be able to change your CTP insurer. You can do this through your mySAGOV account when your registration is due for renewal or by updating your direct debit details (if you pay by direct debit).^{15CTP Insurance Regulator – Purchasing CTP}

Is CTP Insurance all I need?

CTP is the only type of Car Insurance you must get. However, if you want to cover your car for repairs after an accident, or for any damage you cause to someone else’s car or property, then you will need additional Car Insurance.

In fact, without Comprehensive Cover or Third-Party Car Insurance, you could be stuck with a repair bill that costs thousands of dollars, even if the accident was not your fault!

However, iSelect can help you out if you’re looking for some extra Car Insurance on top of your CTP. You can compare different policies from a range of insurers* with us online. It’s a quick and easy way to find a suitable policy.