What is CTP insurance and why do you need it?
Compulsory Third Party (CTP) insurance, often called Green Slip insurance, is compulsory coverage protecting drivers from legal liability when someone is injured or killed in a car accident, whether that person is another driver or passenger, a pedestrian, a motorbike rider or cyclist.
The cost of compensating someone for their medical bills and other expenses after a car accident can be very high, sometimes stretching into millions of dollars. If you’re at fault for an accident, it’s unlikely you’d be able to cover this yourself. This is why CTP is essential.
It’s also important to know that CTP only covers injuries to people, not any other property damage. For this, you’ll need to buy separate car insurance.
How does CTP insurance work?
CTP is mandatory in every state and territory of Australia and is tacked onto your car’s registration. Meaning, as long as your car is registered, you don’t need to purchase a stand-alone CTP insurance policy, because you’ll already have it.
In some states and territories, you’ll be given a list of CTP insurers to choose from when you register a car, giving you the ability to compare policies and save. In others, CTP schemes are run by the government and you don’t have a choice of provider.
CTP covers you as well as anyone who drives your vehicle. While each CTP scheme around the country is unique, they all provide cover for costs born from an accident like:
- Medical treatment
- Ongoing or long-term care
- Lost earnings (usually on a percentage basis)
- Funeral and death benefits
How is CTP insurance different from car insurance?
CTP only covers the cost of personal injury claims born from car-related accidents, and doesn’t cover the cost to repair any damage you might do to vehicles or property–whether that’s your own or others’. If you want additional insurance to protect you, you will need to purchase a policy. Depending on your needs, you’ll select from:
- Third party property damage insurance, which covers damage your car causes to other people’s vehicles and property.
- Third party fire and theft insurance, which covers damage to other people’s cars and property, with additional protection for your car from fire and theft.
- Comprehensive car insurance, which covers all of the above and also includes protection for your car, sometimes including new car replacement.
Compare Comprehensive Car Insurance
No-fault vs at-fault CTP: what’s the difference?
Depending on where you live, your CTP insurance will either have no-fault or at-fault liability:
Queensland and Western Australia are at-fault states. This means that if a person is injured in an accident in one of these states, they must prove they didn’t cause the accident in order for the cost of treating their own injuries to be covered by CTP. If the person caused the accident, their CTP insurer generally won’t pay them any compensation.
| State/Territory | No-fault or at-fault |
|---|---|
| NSW |  No fault |
| Qld |  At fault |
| Vic | No fault |
| SA | No fault |
| WA | At fault |
| ACT | No fault |
| NT | No fault |
| Tas | No fault |
There are still some options if you find yourself in this situation. In Western Australia, the Catastrophic Injuries Support (CIS) scheme can support people who are catastrophically injured in a car crash and can’t prove the fault of another driver. In Queensland, at-fault drivers who sustain certain injuries may still be able to access cover for “necessary and reasonable” treatment through the National Injury Insurance Scheme, Queensland (NIISQ).
In no-fault states and territories, insurance companies will compensate an injured person regardless of which driver was at fault, with some possible exceptions, like if the at-fault driver is charged with a serious driving offence in relation to the accident.
How does CTP work around Australia?
In New South Wales, Queensland, South Australia, and the Australian Capital Territory (ACT), you can choose your CTP or Green Slip provider from a list of approved insurers. This gives you the freedom to switch providers if yours is no longer the cheapest option when you renew your registration. In other states and territories, CTP is provided by a state-owned or government-licensed insurer, meaning you don’t have a choice of insurer.
Here’s a more detailed breakdown of how CTP works around the country:
CTP insurance in the ACT
In Canberra, CTP is known as Motor Accident Injuries (MAI) insurance. MAI insurance in the ACT is provided by AAMI, APIA, GIO, and NRMA Insurance, and you select your provider when registering your vehicle through Access Canberra.
CTP insurance in NSW
In New South Wales, CTP insurance is known as Green Slip insurance. Green Slip insurance is available from AAMI, Allianz, GIO, NRMA, QBE, and Youi. The NSW State Insurance Regulatory Authority runs the Green Slip Price Check website, where motorists can compare CTP insurance to find the cheapest policy.
CTP insurance in the NT
In the Northern Territory, CTP insurance is administered by the Motor Accidents Compensation (MACC), and is automatically included in the cost of your registration. This means that vehicle owners cannot choose an insurer or compare premiums.
CTP insurance in QLD
In Queensland, CTP is administered by the Motor Accident Insurance Commission (MAIC), and you are able to nominate a provider when renewing your registration. CTP in QLD is available from Allianz, Suncorp, and QBE.
CTP insurance in SA
In South Australia, CTP insurance is overseen by the CTP Insurance Regulator, and the costs are included as part of your registration. CTP in South Australia is available from AAMI, Allianz, NRMA, QBE, and Youi.
CTP insurance in TAS
In Tasmania, CTP insurance is administered by the Motor Accidents Insurance Board (MAIB), and is automatically included in the cost of your registration. This means vehicle owners can’t choose an insurer or compare premiums.
CTP insurance in VIC
In Victoria, CTP insurance is overseen by the Transport Accident Commission (TAC), and the cost is automatically included in the cost of your registration. This means vehicle owners can’t choose an insurer or compare premiums.
CTP insurance in WA
In Western Australia, CTP insurance is overseen by the Motor Injury Insurance scheme, and the cost is automatically included in the cost of your registration. This means vehicle owners can’t choose an insurer or compare premiums.
What if you have a car accident interstate?
CTP insurance covers your vehicle Australia-wide, so if you’re at fault in a car accident while driving in another state or territory, your CTP from your home state will cover you. If you move interstate and your car is still registered at your previous address, you’ll need to update your registration and join the CTP scheme in your new place of residence.
What happens if you don’t have CTP?
All registered vehicles in Australia must have CTP. Driving an unregistered vehicle without CTP is an offense and can lead to hefty fines. It can also leave you fully liable for damages caused in an accident.
Can you change CTP insurers?
Yes, if you live in the ACT, NSW, QLD, or SA, you are free to choose your CTP insurer and you can change providers. This is normally done when you renew your registration. In QLD it’s possible to change providers ahead of your renewal, and the change will become effective when you next renew your rego.
Do motorbikes need CTP insurance?
Yes, if you own a motorbike, then CTP insurance will be a part of your registration, to insure against liability for injuries to third parties if you are at fault in an accident.
What is the best CTP insurance?
In the NT, Victoria, Tasmania, and WA, you don’t have a choice of CTP insurers, so you can’t compare and find the cheapest price.
In other states and territories, all CTP insurers provide the same mandatory cover, and premiums can vary based on your vehicle and your personal details. This means that, when it comes time to compare CTP insurance policies, the ‘best’ provider for you is probably the one that offers you the cheapest price.
