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KEY POINTS
- Compulsory Third Party (CTP) insurance is sometimes known as your Green Slip in NSW, and is required to legally register your car.
- New South Wales is one of the Australian states/territories where you can choose your own CTP insurer.
- The cost of your Green Slip may be affected by a range of factors, from the age of the car to where it is kept and your driving history .
What is CTP Green Slip insurance and what does it cover?
Compulsory Third Party (CTP) insurance is a mandatory car insurance policy that’s required for all drivers in every state and territory within Australia. Commonly known as Green Slip insurance in New South Wales, CTP covers you financially against any claims that may arise should you harm or fatally injure someone in a car accident. Some CTP insurers also offer a level of compensation should you injure yourself and are at fault in an accident.
CTP does not insure you for any damage to your vehicle or other people’s cars or property. To be protected against these kinds of risks, you could consider a higher level of cover, such comprehensive car insurance.
Related: What types of car insurance are there?
Why do I need CTP Green Slip insurance?
All drivers registering their vehicles in New South Wales are required by law to have a NSW CTP Insurance policy. The state has a ‘no-fault’ CTP scheme, under The Motor Accident Injuries Act 2017 (NSW). This means that anyone who sustains a severe injury from a road traffic crash involving a registered vehicle in NSW would be eligible for lifetime treatment, care, and support, regardless of who may have been at fault in the accident.
How long does CTP Green Slip Insurance last?
Depending on the type of vehicle, you may be able to purchase a CTP insurance policy for a term of 3 months, 6 months, or 12 months.
Keep in mind that as CTP insurance policy is attached to a vehicle, and NOT to an individual. If you sell your car, the CTP policy will go with it and the next owner will benefit from its cover. You won’t be able to get a refund on your CTP unless you deregister the car and hand in the number plates, or if the car is written off.
How do I get CTP Greenslip insurance?
NSW is one of the few Australian states/territories that offers residents a choice of CTP insurance provider. In most states, CTP is provided by a state-owned or government-licensed insurer.
The insurance companies currently licensed to offer CTP insurance in NSW at time of writing, listed in alphabetical order, are:
- AAMI
- Allianz
- GIO
- NRMA
- QBE
- Youi
Because you can choose your own CTP insurer, this means you can switch providers when your CTP policy is due for renewal. This may let you benefit from a CTP policy with features and benefits that better suit your needs.
How much does CTP Green Slip insurance cost?
The cost of CTP Green Slip insurance is calculated by insurers based on a number of factors set by the NSW State Insurance Regulatory Authority, such as the type of vehicle being insured and where it is kept when not being driven. In other words, CTP insurance premiums can vary widely from policy to policy.
The cost of your Green Slip may also be affected by:
- the vehicle’s age;
- whether you use the vehicle privately or commercially;
- your age;
- your driving history, and;
- if you have made any previous claims or have any demerit points on your licence.
Service NSW provides a CTP insurance price check tool. You can also compare CTP insurance and other insurance policies from all insurers with Canstar.
Does comprehensive car insurance include CTP Green Slip cover?
Comprehensive car insurance does not include Green Slip cover. This needs to be purchased separately when you register your vehicle in NSW.
Unlike CTP, comprehensive car insurance typically covers damage to your vehicle and other people’s vehicles or property, even if you are at fault. It could also cover damage caused by fire, hail and storms, and replacement costs if your vehicle is stolen or written-off.
In addition to these standard inclusions, insurers often offer a range of extras. Some could be included in the policy, while others may be optional and incur additional fees or higher premiums.
Alternatively, you could consider other insurance options such as third party property damage or third party fire and theft cover, as these may charge lower premiums than for a comprehensive car insurance policy. However, these policies won’t cover damage to your own vehicle following an accident, and you’ll still need to organise a separate CTP insurance policy to legally register the vehicle in NSW.
Cover image source: Cat Box/Shutterstock.com
