Car insurance under the name CTP offers coverage for motor vehicle liability in case of injury or death to other road users in an accident that the policyholder is at fault.
In the vast and diverse landscape of Australia, the rules and costs of Compulsory Third Party (CTP) car insurance vary significantly from state to state. This article provides an overview of the key differences in CTP coverage and costs across Australia.
Coverage
Regardless of location, CTP insurance universally provides coverage for compensation related to injuries or death caused to other people in a car accident involving your vehicle. It does not cover damage to vehicles or property, a consistent nationwide standard. However, specific claim handling and benefits can vary slightly by state due to differing legislation.
Cost and Insurers
New South Wales (NSW)
In NSW, CTP (also called Green Slip) insurance premiums vary by insurer. There are six licensed insurers (AAMI, Allianz, GIO, NRMA, QBE, Youi) competing to underwrite policies, allowing drivers to compare prices and choose the best deal. Premiums depend on factors like vehicle type, driving history, and personal details.
Other States and Territories
In other states and territories, CTP is generally included with vehicle registration fees, meaning you pay a single fee that covers both registration and CTP. The cost varies between states but is less directly selectable by the driver compared to NSW.
Cost Variation Factors
Location
Within a state, the location affects premiums due to risk profiles—denser urban areas typically have higher premiums than rural areas because of higher traffic and claims likelihood, though rural areas may have more fatalities per capita.
Vehicle Type and Driver Profile
The vehicle type and driver profile impact costs, with sports cars and newer models usually attracting higher premiums than older, more common cars.
Other Insurance Types
It is essential to note that CTP only covers injury/death claims. Comprehensive car insurance, which is optional, covers damage to your own car, theft, and other risks, and its premiums also vary widely across states based on insurer competition and local risk factors.
Summary
NSW offers market competition among insurers for CTP insurance premiums and coverage management, providing more choice and potential to save. Other states bundle CTP into registration costs, limiting choice but simplifying payment. The exact cost of CTP insurance varies by state, urban vs rural location, vehicle, and driver risk factors. Coverage as injury/death protection is consistent nationwide, but administrative and pricing structures differ.
For more information about CTP insurance in South Australia, you can visit the CTP regulator's website or use their CTP premium calculator. In Victoria, CTP insurance covers medical treatment, travel and accommodation for medical appointments or to visit injured loved ones, income support, compensation, and funeral costs for fatal injuries. In Tasmania, the Motor Accidents Insurance Board (MAIB) provides the no-fault CTP scheme, ensuring protection for both at-fault and non-at-fault drivers. In Queensland, CTP insurance covers medical costs, lost income, and non-economic loss such as pain and suffering. In cases of catastrophic injury, the driver may be potentially covered under the Lifetime Support Scheme.
In the event of an interstate accident, your CTP insurance will protect you from paying compensation anywhere in Australia. If you have an accident with a car that is registered in another state, you need to make a claim against the CTP insurer of the driver who is at fault. The laws of the state in which the accident happened will be applied. If you are in ACT, NT, Tasmania, or Victoria, you will be covered regardless of fault. But if you are an at-fault driver, you may not get any compensation for your injuries under CTP insurance if you are in Queensland, SA, and WA. In NSW, your compensation could be reduced if you are at fault.
- In the personal-finance aspect, drivers in New South Wales (NSW) have more choices when it comes to Compulsory Third Party (CTP) insurance premiums, as they can compare prices among six licensed insurers.
- As for the finance industry across Australia, the costs of CTP insurance for injury/death protection vary significantly from state to state, with factors like location, vehicle type, and driver profile playing a significant role in determining premiums.
