Car Insurance - March 15th
NSW Government review into CTP (Green Slip) insurance– Read more
Compulsory Third Party car insurance – known as CTP or Green Slip insurance – is an included cost of vehicle registration. This is because by law, all registered cars are required to have it. In New South Wales, Queensland and the Australian Capital Territory, you have the power to choose your CTP provider. Everywhere else in the country, CTP is usually provided by one state-owned or government-licensed insurer.
CTP or Green Slip cover only covers you from compensation claims made against you if you were to kill or injure someone in a road traffic accident. Liability for such incidents can stretch into millions of dollars, so you can understand why CTP is compulsory.
As the ‘bare minimum’ of car insurance, CTP doesn’t provide you with financial coverage from damage to other vehicles, your vehicle or property. So if you’re driving with only CTP insurance, you better avoid crashing into any Lamborghinis! Comprehensive car insurance provides the most complete coverage, protecting not only other people but also their – and your – property.
CTP insurance schemes between states and territories can vary in terms of whether they have no-fault or at-fault liability.
Queensland and Western Australia are, at the time of writing, at-fault states. This means you have to prove to the insurer that you were not at fault for the accident in order to receive any compensation and payment for rehabilitation or ongoing care and support if you were injured.
In ‘no-fault’ states and territories, they compensate you regardless of whose fault it was. Unfortunately, if drivers from no-fault states were to have an accident in an at-fault state such as Queensland or Western Australia, they would have to prove that it wasn’t their fault in order to get compensation and payment for treatment. But if Queensland or Western Australian drivers were to have an accident in other states, they would be covered under the respective no-fault schemes.
Australia is close to ending the national divide between no-fault and at-fault CTP liability, with more states/territories moving towards no-fault schemes. South Australia and the ACT adopted no-fault schemes on the 1st of July 2014 and at the time of writing, QLD and WA are making moves to introduce no-fault coverage. No-fault liability requires higher CTP premiums, however.