How does NSW CTP work?
Compulsory third party (CTP) insurance provides compensation for people injured or killed when your vehicle is involved in an accident. The insurer providing the NSW CTP is indemnifying you for claims made against you.
NSW CTP is compulsory for all vehicles registered in NSW.
The NSW CTP scheme has two separate components: the Third Party Insurance Scheme and the Lifetime Care and Support Scheme.
The Third Party Insurance Scheme provides compensation for people killed or injured. Compensation can include hospital, medical and rehabilitation costs, loss of earnings and pain and suffering. Some aspects of compensation are reliant on establishing fault by another party and some are payable regardless of fault.
The third party insurance component of the scheme is underwritten by six insurers (as of 1 December 2020). Insurer pricing and behaviour is monitored and regulated by State Insurance Regulatory Authority (SIRA).
The Lifetime Care and Support Scheme provides a higher level of benefit and ongoing care for people catastrophically injured in a motor vehicle accident. Benefits are payable under this scheme regardless of fault. This means an at-fault driver is entitled to the same benefits as any other catastrophically injured person. The Lifetime Care and Support scheme is funded with a levy included in your NSW CTP premium.
CTP insurance NSW pricing
Insurer prices are determined on the basis of guidelines issued by SIRA. Within a range, the guidelines allow insurers to consider different risk factors and to apply different weightings to those factors, so that prices vary between insurers.
The primary factors that affect price are vehicle type, geographic location, ownership and use, current insurance status, owner and driver age, driving record and claims history.
You can influence some of those factors, which may help reduce your green slip price.
Purchasing NSW CTP?
Your compulsory third party insurance in NSW is often referred to as a green slip.
When purchasing CTP in NSW always compare prices for all six (from 1 December 2020) insurers, based on your vehicle and details. You can do a CTP insurance comparison by using the greenslips.com.au Calculator.
Once you have compared prices you can contact the insurer of your choice to purchase your greenslip.
For light vehicles, NSW CTP can generally be purchased for 6 or 12 months, however there are a few things to consider:
- The period of CTP insurance must match the period of registration
- 6 month registration is not available if you are registering a vehicle for the first time, transferring a vehicle from interstate, transferring ownership or re-registering a vehicle after the registration has been cancelled
- Registration is cancelled if registration is not renewed within 3 months of expiry
- If your registration is more than 3 weeks overdue, the 6 month option is not available.
Your greenslip insurer usually notifies Transport for NSW (TfNSW) electronically that you have purchased your CTP green slip, even if you are registering the car for the first time. You do not usually need to present a hard copy green slip receipt.
Registration and safety checks
Before you can register your vehicle in NSW you will be required to purchase a CTP green slip. You may also be required to arrange a safety and identity inspection for your vehicle.
A vehicle safety inspection is known as a safety check. A more thorough safety and identity inspection is known as a blue slip.
- Light vehicles in NSW do not require a safety check for the first 5 years. After 5 years, an annual safety check will be required to renew registration. The registration renewal notice issued by TfNSW will tell you whether or not a safety check is required
- Authorised inspection stations transmit the safety check electronically to TfNSW.
- Vehicle registration is cancelled if it is not renewed within 3 months of expiry
- A blue slip is required for vehicles being transferred from interstate or being re-registered after the registration has been cancelled.
Where a blue slip is required, TfNSW does not usually require a hard copy before registering the vehicle. Even though most blue slips are sent electronically, you still need to go to Service NSW or motor registry with other required material.
You can renew your registration in person, by phone or online through Service NSW.