You need compulsory third party (CTP) insurance to register a vehicle in Australia. It protects you from financial loss if your vehicle is involved in a road accident causing injury or death to yourself, other drivers, passengers or pedestrians. That’s why it’s worth understanding CTP insurance.
What does CTP insurance cover?
Your CTP insurance covers drivers, passengers or pedestrians who are injured or killed in an accident involving your vehicle. As the vehicle owner, you are protected against any claims against you for damage and losses caused.
Did you know CTP does not cover any property damaged in the accident, such as your vehicle or the other driver’s vehicle? CTP covers only people, not property.
Why is CTP insurance compulsory?
CTP insurance is compulsory so compensation is available equally to all parties who are entitled to it. Anyone injured in the accident can potentially be compensated, whether or not the at-fault driver can afford it.
What does ‘third party’ mean?
The third party is the person who is injured or killed in a road accident. There are 3 parties involved in CTP insurance:
- First party is the owner or driver of the ‘at fault’ vehicle.
- Second party is the CTP insurer of this vehicle.
- Third party is the person who is injured or killed.
Essential to know
- While CTP refers to third party, it’s not the same as third party property insurance.
- Third party property insurance is not compulsory and covers the property of third parties, such as their vehicle.
Why do I need CTP if I have comprehensive insurance?
Some people think comprehensive insurance covers everything and so it must cover CTP as well. It does not. CTP is for people only and does not cover damage to any vehicles or property. Comprehensive insurance covers damage to your vehicle and others’ vehicles and property, but does not cover people.
Who receives my CTP premium?
The insurer or government body that underwrites the CTP scheme receives all CTP premiums. The insurer or government body also pays out any claims on that insurance.
In NSW, vehicle owners pay their CTP premium direct to the insurer. In the rest of Australia, vehicle owners pay a registration fee to the transport authority. It sends the CTP portion of the registration fee to the insurer or government body.
Why isn’t CTP insurance the same all over Australia?
Each state and territory in Australia has its own CTP insurance scheme. Some states and territories have one government insurer and others have private insurers. CTP insurance schemes differ, depending on:
- Who provides insurance
- Who regulates them
- Benefits available
- Whether they fully cover drivers at fault.
However, your CTP policy covers you throughout Australia, whatever your home state or territory.
How CTP insurance works in each state or territory
| Is CTP included in registration? | Government or choice of insurer? | Who are the insurers? | Is compensation based on fault?* | |
| NSW | No. Buy CTP before you can register | Choice of 6 insurers | AAMI, Allianz, GIO, NRMA Insurance, QBE, Youi | Partly based on fault |
| ACT | Yes | Choice of 4 insurers | AAMI, APIA, GIO, NRMA Insurance | No |
| NT | Yes | Government | – | No |
| Qld | Yes | Choice of 3 insurers | Allianz, QBE, Suncorp | Yes |
| SA | Yes | Choice of 5 insurers | AAMI, Allianz, QBE, SGIC, Youi | Yes |
| Tas | Yes | Government | – | No |
| Vic | Yes | Government | – | No |
| WA | Yes | Government | – | Yes |
*What does compensation based on fault mean?
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If compensation is based on fault, the amount you receive depends on whether or not you were at fault.
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If compensation is not based on fault, you can receive compensation whether or not you were at fault.
How does CTP insurance work in NSW?
The CTP insurance scheme in NSW is not like other Australian states and territories because you have to buy CTP before you can register your vehicle. CTP insurance is often called a green slip in NSW.
You can choose from 6 insurers:
- AAMI
- Allianz
- GIO
- NRMA Insurance
- QBE
- Youi
State Insurance Regulatory Authority (SIRA) is the CTP regulator. Insurers set CTP prices. They submit them at least once a year to SIRA, which can reject them if they do not meet the guidelines. The price of CTP insurance varies according to your:
- Postcode
- Type and age of vehicle
- Demerit points
- Distance travelled
- Age of vehicle owner
- Age and gender of youngest driver
- Driving history
- Claims history.
In NSW, postcode is important for setting the price of your green slip. There are 5 rating regions, based on history of accidents and claims: Metropolitan, Outer Metropolitan, Newcastle and Central Coast, Wollongong, and Country. A few postcodes are split between two.
- A 30-54 year old in NSW with an average 10-year old car could pay $495 in Metropolitan, $348 in Newcastle or Central Coast and $349 in Country.*
- A Queenslander with a regular car could pay $391, no matter where they live.*
*At 1 October 2025
How to make a CTP claim in NSW.
How does Motor Accident Insurance work in the ACT?
In the ACT, all vehicle owners pay for Motor Accident Injuries (MAI) insurance as part of their registration fee. There are 4 insurers:
- AAMI
- APIA
- GIO
- NRMA
ACT insurers set their own MAI premiums. Before changing their prices, insurers must submit them to the Motor Accident Injuries Commission for approval.
- Premium prices are for 12 months and vary only with class of vehicle and type of use.
- One type is for private use (no claim for GST) and one type is for business use (claim for GST).
Find ACT MAI premiums for your vehicle.
How to make a claim in the ACT.
How does CTP insurance work in the NT?
All vehicle owners in the NT pay for the Motor Accidents Compensation (MAC) scheme as part of their registration fee.
The MAC scheme is owned by the NT government. It provides compensation for medical and hospital care, rehabilitation services, loss of limbs and loss of earning capacity. It’s a no-fault scheme, which means you don’t have to prove fault to make a claim. However, a driver affected by alcohol or drugs, unlicensed, or involved in reckless conduct may receive less compensation.
Registration fees depend on whether you register for 1, 3, 6 or 12 months, type of vehicle and engine size.
The Territory Insurance Office (TIO) manages MAC claims. How to make an MAC claim.
How does CTP insurance work in Qld?
All vehicle owners in Qld pay CTP insurance as part of their registration. You can choose from 3 CTP insurers:
- Allianz
- QBE
- Suncorp.
The Motor Accident Insurance Commission (MAIC) oversees the Qld CTP scheme.
Qld CTP insurers set their own prices within MAIC guidelines. They are based on the period of registration, class of vehicle and whether it is for private or business use. Prices are for 1, 3, 6 or 12 months.
The Qld CTP scheme pays compensation according to the type and extent of injury but you may receive less if you were partly at fault. You might need to prove in court that another driver was negligent. Someone seriously injured in an accident in Qld may claim lifetime treatment, care and support under the National Injury Insurance Scheme (NIIS). Registration includes an NIIS levy and an MAIC levy.
How does CTP insurance work in SA?
Vehicle owners in SA pay for CTP insurance as part of the registration fee. Five private insurers offer CTP in SA:
- AAMI
- Allianz
- QBE
- SGIC
- Youi
Registration fees depend on:
- Period of registration (1, 3 or 12 months)
- Class of vehicle – passenger, goods carrying, motorcycles etc
- Whether vehicle is garaged in District 1 (metro) or District 2
- Whether or not you claim GST.
You can calculate your premiums and see current claimant service ratings for each insurer. Ratings are based on customer surveys of how well insurers handled claims during the previous 6 months.
The SA CTP scheme is based on fault. You can claim benefits under the scheme if you are injured in a road crash and can prove another driver was at fault. Even so, drivers who are 25% at fault may have to pay an excess. The Lifetime Support Scheme (LSS) covers people who suffer serious lifelong disabilities in car accidents. The Lifetime Support Authority (LSA) runs the scheme and funds it with an LSS levy on registration.
How does CTP insurance work in Tasmania?
CTP insurance is included in the registration fee in Tasmania. Motor Accidents Insurance Board (MAIB) is the Tasmanian government insurer.
In Tasmania, the CTP scheme does not depend on fault. This means you can claim medical and income benefits after an accident whether it was your fault or not. Even so, injured people can still sue for damages if they can prove that the accident was somebody else’s fault.
Benefits payable under the scheme include reasonable medical costs, ambulance transport, hospital treatment, loss of income, funeral expenses and death benefits. MAIB’s Long Term Care program provides lifetime care to people who are seriously injured in a road accident.
Registration fees depend on class of vehicle only. You can choose the period of registration for light vehicles (6 or 12 months) or heavy vehicles (3, 6 or 12 months).
How does CTP insurance work in Vic?
All vehicle owners in Victoria pay for CTP as part of their registration fee. The Transport Accident Commission (TAC) provides insurance.
The Victorian CTP scheme is not based on fault. This means people who are injured in a road accident can still claim medical benefits, even if it was their fault. Compensation includes the reasonable cost of medical treatment, rehabilitation, disability services, income assistance, travel and household support.
The CTP premium shows on your registration bill as TAC premium or TAC charge. The amount depends on:
- Period of registration – 3, 6 or 12 months
- Type of vehicle
- Your postcode– metro, outer metro or rural (risk zones)
- Whether or not you claim a concession.
Calculate registration fees here.
How to make a CTP claim in Victoria.
How does Motor Injury Insurance work in WA?
The cost of Motor Injury Insurance (MII) is included in the WA vehicle licence fee. The Insurance Commission of Western Australia (ICWA) provides MII and sets premiums.
In WA, the MII scheme is based on fault. If it was not your fault, the scheme covers your claim for injuries caused to someone else in a road accident. If it was your fault, it does not cover your injuries unless they are catastrophic. The Catastrophic Injuries Support Scheme covers these types of injuries.
The MII part of a vehicle licence is based on type of vehicle and the primary purpose for which it is used. Light vehicle licences can be renewed for 3, 6 or 12 months.
Summary of how to understand CTP insurance
CTP stands for Compulsory Third Party insurance. It provides compensation for people who are injured or killed if your vehicle is involved in an accident. While CTP schemes have different names and work differently in each state and territory, you are covered all over Australia.
Remember, CTP insurance covers people only, not property. You need comprehensive insurance to cover any property damaged in an accident, such as your vehicle.
If you are looking for CTP insurance in NSW, compare the cheapest prices.
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