Compulsory Third Party (CTP) Insurance in Victoria

What is CTP insurance in Victoria?

In Victoria, Compulsory Third Party (CTP) insurance is included in your vehicle registration and it is called the ‘Transport Accident Charge’. It’s provided by the  Victorian Government’s Transport Accident Commission (TAC), which is a ‘no-fault’ insurance scheme. So, if you are injured in a transport accident in Victoria, you can make a TAC claim to help pay for your treatment and support regardless of whether the accident was your fault. This may include medical care, rehabilitation, counselling, home modifications, income support and/or a lump sum payment if you are eligible for compensation.

What does CTP insurance cover in Victoria?

CTP insurance covers vehicle owners and drivers if they hurt or fatally injure someone in a car accident. According to the TAC, the insurance will cover the owner and driver for any liability including large court payouts. The TAC says it pays an average of $170,000 for each road death and an average of $2.25 million for each serious injury (such as traumatic brain and spinal injuries).

CTP insurance does not cover damage to your vehicle. For this additional coverage, you might want to consider the pros and cons of getting a comprehensive car insurance policy.

Is CTP insurance included in Victorian registration?

Yes, CTP is included with your registration costs in Victoria. When you register a vehicle with VicRoads, you will be given a fee breakdown which includes your registration fee, the TAC charge (also known as the CTP insurance) and the insurance duty (a government charge). So CTP insurance is not the same as your rego, but it is paid at the same time.

How much is CTP insurance in Victoria?

The TAC says the cost of the CTP insurance will depend on:

• The type and use of the vehicle. For example, whether it is a passenger vehicle, goods vehicle, motorcycle, or special use vehicle. The number of seats the vehicle has may also be taken into account.
• The postcode where the vehicle is usually kept. This determines the risk zone (high, medium or low). Premiums may be more expensive for vehicles in higher risk zones.
• Any eligible discounts that apply. For example, you may get a discount if you are a pensioner, concession card holder or an apprentice under an eligible trade.

You can find more information about premiums on the TAC website. The TAC charges are indexed to the Consumer Price Index (CPI) on the 1st of July each year. In Victoria however, at the time of writing, the CPI increase will not be applied from 1 July 2023 to assist with the cost of living.

Do I have to pay CTP insurance if I have comprehensive car insurance?

CTP insurance is compulsory in Australia. This is different to comprehensive car insurance, which is optional. CTP insurance only covers you for compensation costs if you injure or kill someone in a car accident. Comprehensive car insurance provides cover for a wider range of situations and typically covers you for damage to your vehicle, other people’s vehicles, property and theft.

Cover image source: Nils Versemann/Shutterstock.com.