CTP and other third party insurance

CTP insurance, also known as a Green Slip in New South Wales (NSW), is required by law and covers your legal liability to third parties who are injured or killed in the event of a car accident caused by you. It protects you by covering the cost of compensation you are required to pay if you or another driver of your vehicle injures or kills people, pedestrians, motorcyclists or cyclists in a collision. It does not, however, provide coverage for personal vehicle or property damage.

CTP usually only covers the legal liability for third-party injuries and deaths in an at-fault vehicle accident. Depending on the state your vehicle is insured in, it may also cover personal injuries suffered by the at-fault driver. Depending on the state, CTP may be included in your vehicle registration payment. If not, you must purchase it before you’re allowed to register your vehicle.

Every registered vehicle in Australia must have CTP or an equivalent cover. Vehicle owners can choose a government-approved CTP insurer in NSW, the ACT, Queensland (QLD), and South Australia (SA), although pricing may vary depending on the insurer.

CTP is maintained by the state government and included in vehicle registration costs in Victoria (VIC), Western Australia (WA), Tasmania (TAS), and the Northern Territory (NT).

There are two other types of third party insurance products available –TPPD and TPFT. These types of third-party car insurance are separate from CTP insurance and cover the damage you cause to other people’s property or vehicles.

Third Party Property Damage (TPPD) is the most basic optional car insurance. It covers damage to another person’s property or vehicles you cause but typically does not cover damage to your own car. Depending on your insurance provider, you may have limited coverage for your vehicle if it is established that an uninsured motorist is entirely responsible for the damage.

Third Party Fire and Theft (TPFT) provides more coverage than TPPD as it also includes coverage for your vehicle if it’s stolen or damaged by fire. It could be worth considering if you live in or frequently visit places with a high crime rate.

Like TPPD, TPFT only covers damage to your vehicle in very limited circumstances. Depending on your insurer, you may be covered for damage caused to your car by an uninsured driver. TPFT does not cover damage to your car in an accident. Comprehensive car insurance may be a better option if you’re after more extensive coverage for both your vehicle and third-party vehicles and property.

CTP insurance does not cover the following:

• Damage to your own vehicle: CTP insurance does not cover damage to your own vehicle.
• Property damage: CTP insurance does not cover damage to other people’s property, such as vehicles or buildings.
• Injuries or damage caused by deliberate acts or criminal behaviour: CTP insurance typically does not cover injuries or damage caused by intentional acts or criminal behaviour.
• Injuries to you as the driver: CTP insurance is designed to cover you for your liability for injuries you cause to others (including passengers) involved in a motor vehicle accident. Depending on the specific rules of your policy and the state your vehicle is insured in, it may not cover injuries to you as the driver.

CTP (Compulsory Third Party) is a type of third party insurance. It’s different to TPPD insurance and TPFT insurance. CTP is compulsory in Australia and typically covers liability for personal injuries to third parties caused by you in a motor vehicle accident. TPPD insurance and TPFT insurance, on the other hand, cover you for damage caused to someone else’s vehicle or property because of your actions.

If you already have CTP insurance, you may still want to consider getting either TPPD or TPFT insurance for extra coverage. While CTP insurance covers your liability for injuries to others in an accident you cause, both TPPD and TPFT can cover damage to property (such as other vehicles) if you’re at fault in an accident.

Neither TPPD insurance nor TPFT insurance is mandatory in Australia, but having one of these types of non-compulsory third party insurance is strongly recommended as it may help buffer you from some of the financial impact of an accident.

You can look into getting a comprehensive car insurance policy to cover your own car in the event of a car accident.

Comprehensive car insurance provides the most coverage out of all the car insurance plans available to Australians. It can offer coverage for damage to your car, legal liability for damage to other people’s vehicles or property, and also natural disasters, theft and vandalism.