Crash course in compulsory third party insurance

If you plan on driving around Australia, you might be familiar with terms like CTP Green Slips or Third Party Insurance. If you aren’t familiar with the term, here’s a crash course on Third Party Insurance, which will save you big dollars over time and give you more piece of mind while on the road.

What a CTP Green Slip covers

“CTP” stands for “Compulsory Third Party” and is a type of insurance policy. A Green Slip provides compensation to people who are injured or killed in an accident — including passengers, pedestrians, and drivers of other vehicles.

What a CTP Green Slip won’t cover

A CTP green slip will NOT cover damage done to your car or anyone else’s.  It also won’t cover you if your car is ever stolen.  This insurance is designed to simply cover personal injuries, rather than property damage.

What Green Slips are called in different States

• NSW – CTP Green Slip – (RMS – State Government’s Roads & Maritime Services)
• Queensland CTP Green Slip – Compulsory Third Party (Via  Insurance Companies – Various)
• Victoria: TAC – Transport Accident Charge (TAC – Transport Accident Commission)
• South Australia: MII – Motor Injury Insurance (MAC – Motor Accident Commission)
• Australian Capital Territory: Compulsory Third Party Insurance (NRMA)
• Western Australia: Compulsory Third Party Insurance (Insurance Commission WA)
• Tasmania: CTP governed by Motor Accidents Insurance Board (NRMA)
• Northern Territory: CTP via TIO (Territory Insurance Office)

Case Study: NSW – Cost of a Green Slip

The type of vehicle will determine how much you pay, and each insurance company sets its own rates.  However, insurers are required to get all of their green slip rates approved by the Motor Accidents Authority if NSW (MAA).  Because premiums can differ from company to company, it’s smart to do a green slip comparison before you sign up.  Car insurance is a competitive industry in Australia so it is well worth shopping around.  Also when it comes time to renew, compare the rates again.  Insurance companies have a nice habit of creeping prices up while you are busy focusing on other life events.

Discounts and Green Slips

Look into bundling up all insurances with the one insurance company. Bundle your green slip up with your comprehensive vehicle, home, contents and health insurance to save big! Also learn how to improve your driving habits.  If you’ve racked up a bunch of tickets or caused accidents, you’re going to pay a premium over a driver with a perfect record.  Drive smart and your new habits will pay off in CASH over time!

Happy driving!