If you drive anywhere in Australia, there’s no getting around CTP insurance, or ‘Green Slip’ insurance as it’s sometimes called. It is a legal requirement in every state and territory.
CTP insurance protects you from financial liability should you cause a motor vehicle accident that results in injury to a third party, including passengers in your car, other drivers and their passengers, cyclists and pedestrians.
While CTP is mandatory in Australia, you don’t have to take out additional Comprehensive or Third Party cover. However, not having additional insurance could leave you financially vulnerable if you were involved in an accident – even if you’re not at fault.
When it comes to CTP insurance, each state and territory has its own rules and regulations. Generally speaking, the amount you will pay for CTP depends on the type of vehicle being registered (for example, a car, bus or caravan), the age of the vehicle and its performance characteristics, as well as the age, driving history and claims history of the driver.
In most states, CTP insurance is included in the cost of your vehicle’s registration, although drivers in New South Wales, Queensland and the ACT can choose their own provider when registering a vehicle.
While not compulsory in anywhere in Australia, it’s always a good idea to purchase Comprehensive or Third Party insurance for your vehicle.
Do I need any other type of car insurance?
Just because you’re not required by law to carry additional insurance doesn’t mean you should opt out.
Have you ever found yourself saying this?
But I’m a safe driver. Even if that’s true and you never file a claim, can you say the same thing for other motorists? The fact is, we just can’t predict what other drivers will do, and you might get stuck with a massive repair bill even if you didn’t cause the accident.
My car’s value isn’t worth insuring. Even if your car isn’t worth its value in scrap metal, what if you accidentally rear-ended a shiny new Mercedes in the parking lot? Third Party insurance covers you for damage to other people’s property, so you won’t get stuck with the bill for expensive repairs.
It’s too expensive. Even a minor fender bender could potentially cost you thousands of dollars in repairs and leave you stranded without a car for days or weeks. If you ever need to make a claim, the trade-off in the premiums paid will be well worth it.
So, while not having insurance might save a few bucks in the short term, it could end up being a financial nightmare. Indeed, the benefits of having a good insurance policy may only become obvious when you need it most. Be safe and don’t risk it!
One way to cut costs is to not pay for features you don’t need. While Comprehensive car insurance offers the highest level of protection, you might only want to cover damage to other people’s vehicles and property through a basic Third Party Property policy.
Alternatively, a Third Party Fire and Theft policy, which includes some protection for your vehicle, might be sufficient for your needs.
Whichever policy you choose, the price of your premium may vary depending on:
The level of excess you prefer ($250, $500, etc.).
Optional extras, such as windscreen protection or roadside assistance.
The amount of cover that’s right for you will depend on your personal situation and budget. As always, be sure to compare offers to find a policy that has the benefits and features best suited to your needs.
Looking for Comprehensive or Third Party insurance? Start comparing car insurance policies now, or call 13 19 20 and let us help find you a policy with the features you need at a price that fits your budget.
iSelect does not compare all products in the market. Not all products are available at all times.
iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.
Spread the love
Tags :
Leave a Comment
Your email address will not be published. Required fields are marked. *
Success! Thanks for your comment. We appreciate your response.
You might have left one of the fields blank, or be posting too quickly
Leave a Comment
Your email address will not be published. Required fields are marked. *