What is CTP Insurance?

Compulsory Third Party (CTP) insurance covers you and anyone (with a valid licence) who drives your vehicle, against the liability of injuries and death caused to third parties (other people) involved in an at fault accident.

Does it cover damage to my vehicle?

No, CTP insurance only covers people injured or killed if your vehicle is involved in an accident. It does not cover damage to your vehicle, or any other vehicle involved in an accident.

Is it the same as third party insurance?

No. CTP covers damage to people, third party insurance is an additional optional insurance that you can take out, which covers damage to third party property and vehicles. In the event of an at fault accident, third party insurance covers damage to third party vehicles and property but does not cover damage to your own vehicle.

What insurance is compulsory?

CTP insurance is compulsory throughout Australia. It is paid as part of your registration and can be seen on your registration certificate in the cost breakdown. You are not able to register a vehicle without CTP insurance.

Generally, most other types of insurance are optional and can be purchased separately.

There are some instances where comprehensive insurance may also be required as a condition of finance under a secured finance contract for example. If this is the case, the person arranging your finance will outline your insurance requirements under the finance contract when you agree and sign the finance contract.

What are the different types of insurance?

Comprehensive third-party (CTP) insurance  – covers damage to people injured or killed in at fault claims (required)

Third-party insurance – covers damage to third-party vehicles and property damaged as a result of an at fault claim (optional)

Comprehensive vehicle insurance – covers damage to your vehicle as well as damage caused to third-party vehicles and property damaged in an at fault claim (optional)

There are also other types of additional insurance such as gap insurance and loan protection insurance which are available for your peace of mind. For more information about all available types of insurance, visit our insurance page or give us a call on 1800 538 287.

Which insurance is right for me?

The answer to this question will vary depending on your circumstances and needs. Unfortunately, there isn’t a one size fits all answer to this question.

For specific information about insurance and what types of insurance may be right for you, speak to one of our friendly Finance Consultants today for an obligation-free chat about your finance and insurance needs on 1800 538 287.