Even if you have comprehensive insurance, you still need CTP insurance because it’s mandatory and covers injuries or deaths in road accidents. Comprehensive insurance, which is optional, covers only property damage. Understanding the crucial differences between these two types of insurance helps you ensure complete protection on the road. We’ll explore why both are essential, what they cover, and how various factors, like your location and vehicle, influence your insurance premiums.
General differences between CTP and comprehensive insurance
CTP insurance (Compulsory Third Party) is required by law and covers personal injury to others if you are involved in a road accident. In contrast, comprehensive insurance is optional and covers damage to your own vehicle and property, as well as theft, fire, and vandalism. While CTP protects against legal liabilities for injury or death, comprehensive insurance provides financial protection against damage-related expenses. This offers a broader scope of coverage but doesn’t fulfil the legal requirement for CTP insurance. Understanding both helps you ensure full protection on the road.
Factors affecting the cost of both insurance types
The costs of CTP and comprehensive insurance can vary based on several factors. Your location is crucial, as insurance rates differ between metro and country areas. The type of vehicle you drive, its age, and how often it is used also affect premium prices. The driver’s age, driving history, and the level of coverage chosen are also crucial considerations.
Let’s look at these factors in greater detail.
Which factors affect prices of comprehensive and CTP insurance?
|
Factors |
Comprehensive |
CTP |
|
Postcode |
Yes |
Yes |
|
Driver age |
Yes |
Yes |
|
Driving experience |
Yes |
Yes |
|
Driving record |
Yes |
Yes |
|
Claims history |
Yes |
Yes |
|
Gender |
Yes |
Yes |
|
Type of vehicle |
Yes |
Yes |
|
Business use |
Yes |
Yes |
|
Cost to repair |
Yes |
No |
|
Theft propensity |
Yes |
No |
|
Colour of car |
Yes |
No |
|
Garaging |
Yes |
No |
|
Discounts available |
Yes |
No, prices are regulated |
How where you live affects your insurance costs
Comprehensive insurance
Your location significantly affects the cost of comprehensive insurance. Premiums differ across Australia because of, for example, driving conditions, theft rates, types of vehicles, and accident rates involving animals. For example, average premiums are highest in New South Wales ($1,440) and lowest in Queensland ($1,028).
| Average annual premium | |
| NSW | $1,440 |
| SA | $1,238 |
| Vic | $1,183 |
| Average | $1,162 |
| Tas, ACT and NT | $1,124 |
| WA | $1,036 |
| Qld | $1,028 |
CTP insurance
CTP premiums also vary widely by state and region. In NSW, costs differ across five rating regions and postcodes. A 30-54-year-old driver in the Sydney Metropolitan area pays around $420, compared to $289 in Newcastle or Central Coast. In Queensland, a standard car driver pays $370 (2nd quarter of 2024), regardless of location.
Use the greenslips.com.au Calculator to find accurate prices for your postcode.
Gender and insurance costs
Comprehensive insurance
Women generally receive lower comprehensive insurance rates due to statistically safer driving behaviour and fewer accidents compared to men. Men represent a higher percentage of serious injuries and road deaths. This is why women pay about $48 less on average for comprehensive car insurance. Some insurers, such as 1st for Women Insurance and Stella Car Insurance, offer women-specific coverage that includes higher protection for personal items and domestic incidents.
CTP insurance
While gender is a factor in CTP premiums, insurers also ask about the age and experience of the youngest driver.
The greenslips.com.au Calculator requires the gender of the youngest driver to provide an accurate quote.
Vehicle colour and insurance costs
Comprehensive insurance
Believe it or not, the colour of your vehicle can influence your insurance premiums. Insurers may charge more for darker colours, like black, which are less visible in low light or adverse weather and more likely to be stolen. For example, Compare the Market found owners of black cars in 2024 pay up to 8.72% more than owners of white cars to insure the same make and model. However, safety features typically play a more crucial role in reducing accident risk than the colour of your car.
CTP insurance
CTP insurers don’t consider vehicle colour when setting premiums, so the greenslips.com.au Calculator doesn’t ask for this information.
Vehicle age and insurance costs
The age of your vehicle affects insurance premiums because newer cars have higher replacement costs, while older cars may lack safety features and are more likely to be involved in accidents.
Comprehensive insurance
Newer cars are more expensive to insure because of higher replacement costs, with cars under two years old costing around $1,381. Older cars, which have depreciated in value, generally have lower premiums—about $961 for cars aged 11-15 years.
CTP insurance
Older vehicles may incur higher CTP premiums as they are more prone to accidents and often lack modern safety features. Drivers of older cars, especially younger drivers, could pay much more. The greenslips.com.au Calculator considers vehicle age and driver age to provide accurate CTP quotes.
- Most vehicle owners pay more for a car manufactured in 2009 or older.
- Someone 23-26 could pay $100 more for an old car than a recent model, because of their own age.
Driver age and insurance costs
Comprehensive insurance
Young drivers typically face higher premiums because of their higher accident risks. Drivers under 21 paid an average of $2,097 for comprehensive insurance in 2021, compared to $1,082 for a 30-year-old and $723 for a 60-year-old. Insurers often increase premiums and excesses for drivers under 25 or those lacking experience.
CTP insurance
CTP premiums vary a lot by age group: a driver under 23 might pay $723, while a 50-year-old driver pays around $420. This reflects the lower risk of accidents in more experienced drivers. Insurers require the ages of both the vehicle owner and the youngest driver to determine accurate premiums.
Most insurers and our greenslips.com.au Calculator ask for ages of the vehicle owner and youngest driver.
Pay as you drive insurance
Comprehensive insurance
Pay as you drive insurance, or usage-based insurance, is ideal for drivers who cover lower distances annually, have a good driving record, and are over 25. Drivers agree to a distance cap, such as 15,000-20,000 kms per year. If you drive only 5,000 kms annually, you could save around $200 compared to standard comprehensive insurance.
CTP insurance
Pay as you go is generally not available for CTP insurance, except for taxi and rideshare drivers. Most NSW drivers must pay CTP every 6 or 12 months.
Which factors affect prices of comprehensive and CTP insurance?
Comprehensive insurance
Your age, location and gender and many vehicle factors affect premiums for comprehensive insurance. Specialist companies, such as women-only insurers, may offer other inclusions. It is worth shopping around for the best and most relevant comprehensive insurance.
CTP insurance
CTP premiums are generally based on driver, vehicle and driving history. The greenslips.com.au calculator compares prices from all NSW insurers based on your details. Your cheapest greenslip insurer last year may not be your cheapest insurer this time. Always check prices for your greenslip whenever it becomes due.
Summary
Even with comprehensive insurance, you still have to buy CTP insurance. Comprehensive insurance covers damage to vehicles and property, while CTP insurance is mandatory for covering injuries to people in accidents. Various factors, including location, age, gender, and vehicle type, affect the prices of comprehensive and CTP insurance policies.
The greenslips.com.au Calculator helps you quickly and easily compare all CTP insurers across NSW, using all relevant details that affect your premium.
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