What CTP Actually Covers
Compulsory Third Party insurance covers compensation for injury or death to other people (drivers, passengers, pedestrians) if you're at fault in an accident. It does not cover damage to any vehicle or property — that's what your comprehensive or third-party property policy is for. CTP and your regular car insurance policy work side by side, covering different things.
How It's Bought, State by State
- NSW — called a 'Green Slip,' bought separately from a range of licensed insurers, prices vary between providers
- Victoria, Tasmania, South Australia — CTP is included automatically in your vehicle registration fee, so there's no separate purchase or comparison to make
- Queensland — CTP is bought alongside registration but the price is set by government-regulated insurers with limited price variation
- WA and the NT — CTP is bundled into registration through a single state-run insurer
Why It's Compulsory Everywhere
Every state requires CTP because it ensures anyone injured in a car accident has a guaranteed path to compensation regardless of the at-fault driver's own financial situation — without it, an injured party could be left with no recourse if the at-fault driver had no assets or insurance.
CTP vs. Your Comprehensive Policy
It's a common misconception that comprehensive car insurance replaces the need for CTP — it doesn't. Comprehensive covers vehicle and property damage; CTP covers injury to people. You need both to be fully covered, and CTP alone (without comprehensive or third-party property cover) leaves your own car and any property damage entirely uninsured.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.