7 Vital Things to Learn About CTP Insurance

CTP Insurance Coverage

CTP is a type of insurance that is called compulsory third party insurance. It is required by law before registering your vehicle. CTP will cover the compensation of an injured driver or their next of kin if they are killed.


Sometimes when people are referring to a greenslip, they are referring to CTP insurance. Some people may get the two terms confused. Greenslips are the same thing as compulsory third party insurance. In different states or territories, some may say they purchased their greenslip, and this just means they bought a CTP policy.

Purchasing CTP

Purchasing CTP isn’t a tedious task that can be very easy for you to do [through a car insurance comparison site.]). You will need to choose an insurer you want to get the insurance through. Once you have chosen an insurer, you can visit their website, call their office numbers, or set up an appointment to go in person and purchase your CTP. Sometimes CTP will be included in the registration fees of your vehicle. However, regardless of the purchasing options, you will need to cover CTP insurance as required by law.

Premium Calculations of CTP

You may wonder how your premium will be calculated when going to purchase your CTP insurance. Premiums can be determined by one or more of the following items:

  • The vehicle, make, model or year.
  • Safety features your vehicle offers.
  • How much usage you get out of your vehicle.
  • Your vehicles garaging location.
  • Age of the drivers using your vehicle.
  • Demerit points
  • Your motor vehicle insurance.
  • Any at-fault motor accidents on your record.

Coverage Details

When in the market for CTP insurance, you will want to know the details of what the coverage will pay for and what it will not pay for. Firstly, a common misconception is that CTP will cover damages to another person’s property of the vehicle. It does not cover any property or vehicles damages. Here are some examples of what the CTP insurance will cover:

  • If you are the person liable for a car accident that results in the other party being injured or killed.
  • If you are injured or killed in a car accident, a next of kin can receive compensation.
  • If a person without insurance or in a hit-and-run scenario causes an accident and you receive injuries or get killed.

CTP Time Frames

When purchasing compulsory third party insurance, you may wonder how long your coverage will be effective, and you may have other questions on how long afterwards purchasing to register your vehicle; when you have the option to purchase the CTP insurance, you can choose to buy a six- or twelve-month policy. However, the insurance does not automatically update or renew, and you will need to be aware of your coverage dates so you do not go uninsured. Once purchasing your CTP insurance policy, you can register your car immediately and, in some instances, it may take up to an hour to be electronically sent to TfNSW.

Driving Anywhere

The CTP insurance will cover you anywhere that you are driving. Regardless of the state or territory, you had your vehicle registered in. If you get into an accident outside of your state or territory, compensation claims will depend on the scheme the policy is based on. If there is a fault-based scheme, you will not be eligible for any compensation if you are liable for the accident. However, in a no-fault scheme, you or a next of kin may still be eligible for compensation if you are liable.

CTP and Third-Party Insurance

Third-party insurance is a different type of insurance from CTP that can protect you and your finances if you are liable for the accident and cause damage to another person’s car or property. It is different from CTP because it covers the property and damages and not the injuries or deaths. Nonetheless, third-party insurance may not be required by law like CTP, but it is something you need to consider investing in.

If you are, in fact, reliable for an accident, you may be required to pay for the costs of repairs of the property damage and that can be very high and cause damage to your finances.


CTP insurance is something that you need because it is required by law. Without the insurance, you may be financially liable and required to pay for the injuries or death to the other party. If you own a vehicle or drive one without CTP insurance, you will also face some pricey fines. Regardless of the law requiring CTP insurance, it will protect you and your family in case of an accident. Therefore, CTP will give you peace of mind whenever you are leaving your home.