Is CTP car insurance enough?

Compulsory Third Party (CTP) insurance, also known as a greenslip in some states, is mandatory for registered cars in Australia and protects the driver of the vehicle if they become legally liable for injury to a third party road user.

Due to its limited amount of coverage, many people opt for additional cover such as Third Party Property (TPP) insurance or comprehensive car insurance.

Compulsory Third Party coverage

• CTP insurance only covers claims for personal injury and does not provide coverage for damage to any vehicles or property that may occur as the result of an accident

• CTP insurance can vary quite drastically in price, so it is worth shopping around for the best deal

• CTP insurance is most commonly paid with annual registration dues, so drivers must remain with the same insurer until the registration period ends

• At the time of renewing registration it is possible to opt for a new insurer to take over CTP insurance. All you have to do is complete the Nominated Insurer section of your registration paper renewal form

• CTP is necessary to provide basic coverage for other road users when it has been determined that you are the driver at fault. CTP covers personal claims made against you

Additional car insurance options

Additional insurance is required for third party property protection or coverage of your own vehicle.

TPP insurance will cover any damage to third party property, but not your own. This is a highly recommended form of insurance and is offered by most Australian car insurers.

Comprehensive car insurance is tailored and can cover a number of instances, from repairing damage to your own vehicle, to providing you with a hire car if your car is damaged. This is a more expensive option, and depends on individual situations.