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Compulsory Third Party (CTP) Insurance

What is CTP Insurance?

CTP insurance is an abbreviation for compulsory third party insurance. This insurance provides compensation for people injured or killed when your vehicle is involved in an accident.

CTP insurance is compulsory in all states of Australia. You cannot register your vehicle without having a policy in place. In most states, your CTP is included with your registration, unlike NSW where you must purchase it as a separate step prior to renewing your registration.

States also vary on the basis of other factors, including fault, liability, injury and compensation. In addition, states also have different requirements for vehicle safety and identity checks which must be satisfied prior to registration.

You should acquaint yourself on the rules and requirements for compulsory third party insurance and registration based on the state in which you live.

Information on a state by state basis is available on this website.

Regardless of the state, CTP insurance will not cover you for damage to vehicles (yours or other parties), damage to property or theft. You need to insure separately for losses such as those.

CTP Insurance FAQs

  1. What is covered by it?
    Compulsory third party insurance provides compensation for people injured or killed when a vehicle is involved in an accident. Effectively, the driver of the vehicle causing the injury is being indemnified against claims for the damage and losses which have been caused.
  2. Why is it compulsory?
    Third party personal insurance is compulsory so that compensation for loss is not dependent on the means of the person who caused the loss. Without CTP insurance, compensation may not be available equally to all parties who are entitled to some form of compensation.
  3. Do I still need comprehensive insurance?
    Comprehensive insurance and CTP insurance are entirely different. CTP insurance does not cover damage to property, damage to vehicles or theft. Coverage for incidents such as those is generally included in comprehensive insurance.
  4. Who receives the premium?
    The compulsory third party insurance premium is received by the insurer or body that underwrites the scheme. The insurer or underwriting body also pays claims.
  5. How do I find cheap CTP insurance?
    The answer to this question depends entirely on the state in which you live. In some states there is only one CTP underwriter and the CTP premium is included in your registration. In QLD, ACT, SA and NSW there are multiple CTP insurers. You need to obtain CTP insurance quotes to determine the cheapest CTP price available for those states. You can use the CTP calculator on this website to obtain NSW CTP prices.