Car insurance namely referred to as CTP covers liabilities in case of accidents that cause injury or death to other road users. It is a mandatory form of insurance in many places to ensure financial protection for all involved in road accidents.
In Australia, compulsory third party (CTP) car insurance is a mandatory requirement for all motorists. This essential coverage is designed to protect you from paying compensation to people injured in a car accident that you caused. However, the specifics of CTP insurance vary across states, with key differences in coverage scope, how it is purchased, and the availability of additional covers.
Coverage Scope
Regardless of where you live, CTP insurance covers liability for injuries to others caused by an at-fault driver, including medical bills and compensation for injured or deceased third parties. It does not cover damage to your own vehicle or to property, which is covered by separate insurance types like comprehensive or third party property insurance.
Purchase and Administration
In New South Wales (NSW), Queensland (QLD), and South Australia (SA), CTP must be purchased separately from vehicle registration. For example, NSW uses a "Green Slip." On the other hand, in Victoria (VIC), Western Australia (WA), Tasmania (TAS), Northern Territory (NT), and Australian Capital Territory (ACT), CTP is included in the vehicle registration fee. The ACT uses a similar but broader Motor Accident Injuries (MAI) insurance that covers everyone injured regardless of fault.
At-Fault Driver Cover
While statutory CTP benefits cover at-fault drivers’ injury claims in all states, some insurers provide additional at-fault driver injury cover beyond the statutory minimum. For instance, NRMA Insurance in NSW offers an "At-Fault Driver Cover" called Driver Protection Cover that provides extra benefits for drivers injured and at fault, though this is limited and subject to exclusions such as excluding motorbike riders. Most other insurers do not offer this extra at-fault driver cover.
Statutory Benefits for At-Fault Drivers
Since reforms implemented by 2023 in NSW, at-fault drivers can claim statutory benefits for injuries up to 12 months, a change from older schemes where at-fault drivers had more limited cover.
State-Specific Differences
In South Australia, all insurers provide the same cover and charge the same amount for CTP. The premiums for CTP insurance in South Australia are: AAMI: $268, Allianz: $262, NRMA: $266, QBE: $262, YOUI: $262. In Victoria, CTP insurance covers medical treatment, travel and accommodation, income support, compensation, and funeral expenses. The cost of CTP in Victoria depends on the type of car and where you live.
Tasmania has a no-fault CTP scheme provided by the Motor Accidents Insurance Board (MAIB). In the Northern Territory, CTP insurance covers medical and dental treatment, rehabilitation, replacement of 85% of lost average weekly income, care and support services, treatment for serious and permanent injuries, return to work support, modifications to your home, aids and equipment, emergency travel, funeral expenses, and compensation for the dependents if someone died.
In Western Australia, CTP insurance is operated by the Insurance Commission of Western Australia and is called Motor Injury Insurance. In the ACT, CTP insurance is called Motor Accident Injuries (MAI) insurance and is a no-fault scheme.
Claims and Compensation
If you have an accident interstate, the CTP insurance conditions of the state where the accident occurred will be applied. If you have an accident with a car that is registered in another state, you need to make a claim against the CTP insurer of the driver who is at fault. The laws of the state in which the accident happened will be applied. If you are in ACT, NT, Tasmania, or Victoria, you will be covered regardless of fault. But if you are an at-fault driver, you may not get any compensation for your injuries under CTP insurance if you are in Queensland, SA, and WA. In NSW, your compensation could be reduced if you're at fault.
Ratings and Fees
The Motor Injury Insurance charges $505 in fees in 2025/2026 for 12 months for a normal motor car. The SA CTP Insurance Regulator surveys all people who have had a CTP claim and publishes a service rating. As of July 2025, the ratings for the 12 months to June 2025 are: AAMI: 86%, Allianz: 84%, NRMA: 86%, QBE: 80%, Youi: 85%.
Remember
CTP insurance does not cover damage to your car or any other cars. It's essential to ensure you have the appropriate insurance coverage to protect your vehicle as well. CTP car insurance, also known as a green slip in NSW, is compulsory in Australia. Always ensure you understand your coverage and the specifics of CTP insurance in your state to drive safely and legally.
- When it comes to personal-finance matters, understanding the specifics of CTP insurance in your state is crucial, as different states in Australia have varying requirements and coverage scopes for CTP insurance, such as purchasing it separately or including it in vehicle registration fees, like in New South Wales (NSW) that uses a "Green Slip."
- In the realm of business, it's worth noting that individual choices in the finance industry can significantly impact personal-finance outcomes, such as opting for additional at-fault driver injury cover beyond the statutory minimum, as offered by NRMA Insurance in NSW through their "Driver Protection Cover."
