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10 common questions about green slips

10 questions

Greenslips.com.au has been helping people with green slips for 20 years. During 2020, greenslips.com.au received 575 emails and 6,203 phone calls. There were a few common misunderstandings about green slips. We’d like to clear some of those up during 2021.

  1. How many insurers issue green slips? ›
  2. Do greenslips cover damage to my car? ›
  3. Can I transfer my green slip to another car? ›
  4. Can I get discounts? ›
  5. What happens if there is no youngest driver? ›
  6. Why do some suburbs pay more than others for green slips?›
  7. Why can’t I get a 6-months green slip?›
  8. Does a green slip cover me if I’m at fault in an accident?›
  9. Can I get a refund on CTP when I sell my car?›
  10. How can I get the price of my green slip down›

1. How many insurers issue green slips?

There are only six licensed CTP insurers in NSW. These are AAMI, Allianz, GIO, NRMA, QBE and recent entrant, Youi. Even if you buy a green slip through an agent, it’s still issued by one of these insurers. APIA, Shannons, Woolworths and others are selling green slips from one or more of these six regulated CTP insurers. For example, APIA sells GIO green slips.

2. Do greenslips cover damage to my car?

greenslips don’t cover damage to your car. They cover injuries or death of people in an accident involving your car. You need to buy further insurance to cover damage to your car. Third party property insurance sounds a lot like compulsory third party (CTP) insurance, but they are completely different. Third party property insurance covers damage to property belonging to someone else only. Meanwhile, comprehensive insurance sounds like it covers everything, but it doesn’t. It covers damage to your car or the property of someone else but not injury or death of people. This is the one you need for damage to your car.

3. Can I transfer my greenslip to another car?

No. Greenslips always stay with the registered car because you can’t register a vehicle without a green slip.  If you sell or buy a registered car, the greenslip automatically transfers with the car. The price of the car includes registration and greenslip because, once again, you can’t register a vehicle without a greenslip. When it’s time to re-register that car, the new greenslip will reflect the new owner’s details.

4. Can I get discounts?

There are two parts to this answer. You can’t get any further discounts on green slips because discounts are already built into your answers to insurer questions. In the same way, pensioners can’t get discounts on green slips, even though they can get free registration. In fact, no-one is allowed to offer discounts on greenslips and anyone who appears to be doing so may be breaking the law. The second part of the answer is companies can offer discounts on other types of insurance if you hold your greenslip with them. In this case, the discount is not on the green slip but on some other product, and it’s a reward for your loyalty.

5. What happens if there is no youngest driver?

This is a very common misunderstanding. Sometimes there is only one driver of a vehicle. For insurer purposes, they simply need to know the age of the youngest person driving the vehicle. If you are the only driver, then you are also the youngest driver and you need to state your own age again. You don’t need to be young to be the youngest driver!

6. Why do some suburbs pay more than others for green slips?

There are five so-called rating regions in NSW and they are set by government, not by insurers. The most expensive region is Metro and the others are Outer Metro, Newcastle and Central Coast, Wollongong and Country. Some suburbs pay more than others because of split postcodes, where towns with the same postcode are in different rating regions. For example, 2750 would normally be Metro but Emu Plains and Leonay are classified Outer Metro. Prices for green slips are partly based on the risk of residents in that region having an accident and making a claim.

7. Why can’t I get a 6 months greenslip?

A 6-month green slip is available for those who are re-registering their vehicle, but never for the first registration. The first registration is for 12 months only. You pay the first registration when transferring from another state or buying an unregistered car that needs a blue slip. However, if you have let your registration renewal lapse by 21 days or more, you have to go back to 12 months for that payment.

8. Does a green slip cover me if I’m at fault in an accident?

Since reform of the NSW CTP scheme in December 2017, even drivers at fault get some coverage. For the first 6 months, there are regulated payments for treatment of minor injuries and loss of earnings. After 6 months, it depends on the seriousness of injury. If you sue for damages and you were at fault, your insurer may offer a lower payout. However, if you have at-fault driver cover from Allianz or NRMA, you will be covered as an at-fault driver. They are the only insurers offering this type of cover on top of their greenslip. Note, their green slip coverage is exactly the same as the other insurers.

9. Can I get a refund on CTP when I sell my car?

No. The CTP remains on the car you sold and the price you sold it for included registration and CTP. However, you can get a refund of CTP if you cancel registration on your car. Then you must show proof from Service NSW of cancelled registration and your CTP insurer will give a refund. They might refund some of the Fund Levy too. If you move interstate, then you need to cancel registration in NSW and are entitled to a refund of CTP paid in NSW.

10. How can I get the price of my green slip down?

The greenslips.com.au calculator asks questions about yourself, your vehicle, and driving experience to find greenslip prices. Some answers really make a difference to the price of your green slip. One is the type of vehicle you drive, for example, whether it’s a sedan, a Ute or an SUV. Another is your postcode, as covered in Q6. Third is any traffic offences or accidents you have had, including any demerit points. Last is the age of the youngest driver, because young drivers tend to be more risky on the road. If you are able to change any of these factors, you can get the price of your green slip down.

Corrina Baird

Writer and expert greenslips.com.au

Corrina used to lend her car to her kids and discovered first hand what Ls, Ps and demerits mean for greenslips. After 20 years of writing and research in financial services, she’s an expert in the NSW CTP scheme. Read more about Corrina

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