- Posted 29 Oct
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CTP or Compulsory Third Party Insurance, the ‘green slip’ as it’s more commonly known, is a prerequisite for all car owners in Australia. It provides legal protection for any damage, injury or deaths caused by accidents directly involving whoever is insured by this policy.
The damage might be caused to other drivers, passengers, cyclists, pedestrians or others but as long as your have CTP, you’ll be covered.
Your usual car insurance will not cover any of the costs of this nature should an accident be caused by your own driver’s negligence or lack of reasonable care while driving.
However, CTP doesn’t cover any damage caused to other cars or property, only to people.
How to Get CTP Insurance
CTP Insurance for your car is included with your motor vehicle license in most Australian states. You cannot register your car without having some type of CTP cover in place.
Even if you’re directly responsible for an accident and have breached the terms of the CTP policy or your motor vehicle license has expired, the Insurance Commission is legally bound to meet the claims of any third parties that might have been injured at that time.
Why You Need CTP Insurance
As mentioned before, a CTP policy will provide you with unlimited cover for any damage your negligence might cause to any third party on the condition that you comply with certain terms and regulations.
If you or anyone you’re paying to drive your car is in any way responsible for causing harm to another driver, passenger, pedestrian or cyclist, even though you might legally be liable for the damage, you won’t have to bear any of the financial claims any of these parties might make in the event of a crash.
(However, it is important to note that your CTP Insurance will not give you protection for any damage or injury caused to your own person or vehicle.)
Not having CTP Insurance is not an option as per Australian law. It is compulsory by name and all registered vehicles must have one.
It comes with the motor vehicle license and any car that’s found without one will be financially liable for all the monetary claims made by third parties in a crash caused by the person who owns the car, or by someone hired by them to drive it.
Price of CTP Insurance Policy
The cost of a policy is dependent on a lot of different factors. Here are some of the more notable ones:
- Who is providing the policy to you (insurer)
- The make and model of your car
- Length and nature of your policy.
- Where you live
- Purpose of your car buying – personal use or business
Want to know more about car and CTP insurance? Our car finance experts are happy to help you. Get in touch with us today.