CTP is compulsory third party insurance to cover people who are injured or die in a road accident involving your vehicle. If you also want to protect your car, you need comprehensive or third party property insurance. Make sure you know which one you are buying and why.
What is CTP insurance?
CTP insurance stands for ‘compulsory third party’ insurance.
- It protects you from any damages claims made if your vehicle was involved in a crash and hurt or killed somebody.
- It’s compulsory, so compensation doesn’t rely on the financial means of the driver at fault.
CTP protects you and other people, not your car.
How does CTP insurance work?
You must buy CTP insurance separately before you can register your car in NSW. It is usually called a green slip. Insurers set CTP prices based on vehicle owner, driving history and their vehicle.
Where you live is important for CTP pricing. There are 5 rating regions: Metropolitan, Outer metropolitan, Newcastle and Central Coast, Wollongong, and Country. (A few postcodes are split between 2 regions.)
In March 2026, for example, a 50-year-old in NSW with an insured 3-year-old car and a good driving record could pay from:
- $556 in Metropolitan
- $462 in Wollongong
- $431 in Outer metropolitan
- $390 in Country areas
- $381 in Newcastle/Central Coast.
Use the green slip calculator to compare prices from all NSW CTP insurers based on where you live.
What is third party property insurance?
Third party property insurance is a type of motor insurance that protects only cars or property that belong to other people.
This is the cheapest option when you want motor insurance to cover somebody else’s car rather than your own. It’s cheaper than comprehensive insurance because it’s limited to other cars only.
Essential to know
Look for the word ‘property’ to tell the difference between compulsory third party (CTP) insurance and third party property insurance.
What is comprehensive insurance?
Comprehensive insurance is not as comprehensive as it sounds because it covers only property, not people. It’s a common misunderstanding that comprehensive insurance must include CTP insurance.
In fact, comprehensive insurance covers your vehicle and property and the vehicle and property of others involved in an accident. It usually includes cover for fire damage and theft of your vehicle and may include windscreens or roadside assistance.
It is comprehensive cover for property, not people.
Why get comprehensive or third party property insurance?
You would buy comprehensive or third party property insurance to protect your car and/or someone else’s car.
- If your car has a relatively low value, you might choose third party property insurance to cover other people’s cars only.
- If your car is valuable, you might choose comprehensive insurance to cover your car as well.
Even if you have comprehensive insurance, you still have to buy CTP insurance.
How can I reduce my prices for CTP insurance?
CTP insurance prices are affected by many different factors. You can reduce prices only if you can change one or more of these risk factors. For example,
- Postcode
- Driver age
- Driving experience
- Driving record
- Claims history
- Gender
- Type and age of vehicle
- Business use
- Demerit points.
Use the green slip calculator to quickly and easily compare all CTP green slip insurers in NSW.
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