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 comprises 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 five insurers. 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. That is, an at-fault driver is entitled to the same benefits as any other catastrophically injured person. The Lifetime Care and Support scheme is funded by way of a levy which is included with 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 which 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 it is important to compare prices for all five insurers, based on your vehicle and details. You can undertake a CTP insurance comparison by using the green slip calculator on this website.
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 six or twelve months, however there are a few things to consider:
- The period of CTP insurance must match the period of registration.
- The six month registration option 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 three months of expiry.
- If your registration is more than three weeks overdue, the six month option will not be available.
Your greenslip insurer will notify Roads and Maritime Services (RMS) electronically that you have purchased your CTP green slip, even if you are registering the car for the first time. You no longer need to present a hard copy green slip receipt.
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 five years. After five years, an annual safety check will be required in order to renew registration. The registration renewal notice issued by the RMS will tell you whether or not a safety check is required.
Authorised inspection stations will transmit the safety check electronically to the RMS.
A blue slip is required for vehicles being transferred from interstate or being re-registered after the registration has been cancelled. Vehicle registration is cancelled if it is not renewed within three months of expiry.
Where a blue slip is required, the RMS no longer requires a hard copy of the blue slip before proceeding with the vehicle registration. 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.