In NSW, compulsory third party (CTP) insurance is called a greenslip. This is because it used to be printed on green paper. Your greenslip is an insurance policy that pays compensation for people who are killed or injured in a road accident involving your vehicle. It does not cover you for damage to your property or the property of others.
What your greenslip covers
The insurance coverage provided by a greenslip is mandated by law. This means each insurer has to provide exactly the same coverage with their greenslip.
Your greenslip covers:
- Compensation for people who are killed or injured in a road accident involving your vehicle
- People covered include passengers, pedestrians, cyclists, motorcyclists, other drivers and, to a lesser extent, the driver at fault
- Compensation under the Lifetime Care and Support Scheme for catastrophic injuries in a road accident
- Cover for trailers under the greenslip of the towing vehicle
- Cover wherever you drive in Australia.
Remember, your greenslip covers only people.
What your greenslip does not cover
Your greenslip does not cover:
- Damage to your vehicle or property
- Damage to other people’s vehicles or property
- Theft of your vehicle.
Remember, your greenslip does not cover property.
Does comprehensive insurance include a greenslip?
Comprehensive insurance does not include a greenslip. The word “comprehensive” seems to imply that comprehensive insurance covers people and property. However, the purpose of comprehensive insurance is to cover all kinds of property. It does not include cover for people.
- A greenslip is cover for people only, but does not cover damage to your vehicles or the vehicles of others
- Comprehensive insurance covers damage to your vehicle and others’ vehicles and property, but does not cover people.
Does a greenslip include third party property insurance?
A greenslip does not include third party property insurance. However, third party property insurance covers only the property of other people. It does not include cover for your property and it does not include cover for people.
Third party property insurance is the minimum available motor insurance for property and is generally less expensive. In fact, people typically choose this when their own vehicle is of low insurable value. This is because they want to be protected from the cost of damaging more valuable vehicles.
All greenslip insurers offer comprehensive insurance and third party property insurance (for a further cost on top of their greenslips). Even so, many other insurers also offer comprehensive insurance and third party property insurance. Some offer cover for fire and theft only.
Compare types of motor insurance
|Coverage||What it does not cover||Considerations|
|Compulsory third party (CTP)||Protection against claims for compensation if you injure or kill someone in an accident||Damage to your car, other cars, property, or theft||Compulsory|
|Comprehensive||Damage to your car, including fire and theft, damage to other cars and property, plus optional extras||Damage to your car if not roadworthy or licensed, or when driver is affected by alcohol or drugs Compulsory third party (CTP)||The broadest and most expensive cover for your car, other cars and property|
|Third party property only||Damage caused by your car to other cars and property plus cover for legal costs||Damage to your car or theft Compulsory third party (CTP)||Protects against damage to other cars, usually chosen by driver with a low-value car|
|Fire and theft only||Limited cover for your car for damage or loss because of fire or theft||Damage to your car (other than fire or theft), other cars or property Compulsory third party (CTP)||Provides some protection for your car but less than comprehensive cover|
Your greenslip is an insurance policy that pays compensation for people who are killed or injured in a road accident involving your vehicle. It does not cover you for damage to your property or the property of others. Comprehensive or third party property insurance covers property and you can choose whether or not to have one of these. Your greenslip covers people and is mandatory. Compare green slip prices for every insurer here.
Have you ever wondered why you need a green slip? Do you know what your green slip covers and doesn’t cover? Do all insurers offer the same green slip? These are all good questions you ask that greenslips.com.au will answer.
This is the second article in our 8-part series, How greenslip insurance works. Read the first article, What is a greenslip and why do I need one?