CTP and Green Slip Insurance

Compulsory third party (CTP) car insurance, sometimes known as a green slip, protects you from legal and medical costs arising from injuries and deaths caused by car accidents. CTP insurance is compulsory in Australia. You cannot register your vehicle without it. There are currently only 7 companies that offer CTP insurance. The only real difference between them is how much they cost and whether they'll cover your own injuries if you're at fault.

Who offers CTP and green slip insurance and how much does it cost?

Choosing a provider is easy because only six insurance companies in Australia are licensed to provide CTP insurance. Of these, three have the option of additional at-fault cover.

We used the Australian government's tool and found that the costs for CTP in NSW are actually pretty similar, except for NRMA where the cost is slightly higher. We based these costs on a save driver born in 1987, driving a 2017 Ford Falcon.

Insurer	Offers At-Fault Cover?	Yearly cost
Allianz	Yes	$482.00
GIO	Yes	$444.05
NRMA	Yes	$524.76
AAMI	No	$449.77
QBE	No	$447.75

CTP won't protect you if you damage your car, but comprehensive car insurance will

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How do I find the best CTP?

There's no universally best CTP policy out there unfortunately, as it depends on a bunch of factors like your gender, age, and where you live. But on the plus side, there's only two real differentiating factors between CTP policies: their price, and if they offer at-fault cover.

• At-fault cover: Luckily, Australia has Medicare so hospital expenses following an accident play less of a part in usual policies. At-fault cover means that you'll be covered for injuries by your CTP, even if you're the one that caused the accident. Standard CTP still covers at-fault drivers to some extent.

• Price: CTP insurance prices in QLD, NSW and the ACT will vary as CTP insurance providers try to offer competitive rates and have different ways of determining driver risk levels. Depending on your location and driving history, you will get better prices from some than others.

All states have their own CTP insurance schemes, managed by that state’s Insurance Regulatory Authority. In Queensland, New South Wales and the ACT, drivers may choose their CTP insurance provider, while in South Australia, Victoria, Tasmania, Western Australia and the Northern Territory it’s automatically built into vehicle registration.

Search for CTP insurance by state

CTP insurance is only for injuries to people. It does not cover any damage to vehicles or property. If you want extra cover consider taking out comprehensive car insurance.

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What does compulsory third party insurance cover?

CTP ‘green slip’ insurance sees that people who were injured or killed in a motor vehicle accident anywhere in Australia can receive compensation irrespective of the financial situation of the driver(s).

The type of compensation available covers both economic and non-economic loss, meaning that hospital, medical and rehabilitation expenses as well as loss of income will be covered, as is pain, suffering and loss of quality of life. The level of compensation available is limited and there are a lot of factors which determine exactly how much someone will be awarded.

The damages from the accident are awarded by the at-fault party’s CTP insurance, which covers injuries sustained by both parties. CTP includes things other insurance policies won’t:

• Special children's benefits, which states that children younger than 16 can apply for this benefit and be compensated, even if they were the cause of the accident;
• Blameless accidents, which stipulates that people who were killed or suffered an injury in an accident can receive compensation, even if there wasn't anyone to blame. Such accidents include those caused by drivers who suffer a sudden medical issue, such as a heart attack, collisions with animals that could not be avoided and inexplicable mechanical problems.
• Bulk billing arrangements. This proviso states that the expenses associated with hospital care, ambulance transport and any other treatments needed for the at-fault driver are funded by the insurance policy, just like for any other person that was injured in the accident. Regardless of who is to blame, the scheme will cover the expenses in question;
• Accident notification provisions. An early payment of $5,000 entitlement extended to both the at-fault driver and the victim, to cover treatment and loss of income by lodging an Accident Notification Form (ANF).

Despite all these, the at-fault party is still not entitled to receive all the benefits that other parties who were injured in the accident have access to. There are certain benefits that are not covered by the bulk billing arrangements or the accident notification provisions, which guilty parties do not have access to.

The guilty party cannot file a claim for:

• Any expenses over $5,000 incurred in a medical facility that is not a public hospital connected to medical treatment, pharmaceuticals and rehabilitation;
• Attendant or respite care;
• Changes to their residence;
• Benefits to cover loss of quality of life, pain and suffering;
• Loss of income past the $5,000 ANF limit;
• Future loss of income.

CTP coverage differs between states, but is the same within each state regardless of which insurer issued the policy. For this reason you should try to find other liability insurance to cover what your CTP insurance doesn’t, rather than vice versa.

The product disclosure statements provided by insurance companies contain full detail on what is and is not covered by at-fault insurance, while CTP insurance details for your state can be found in the Motor Accidents Compensation Act 1999 and the Motor Accidents Act 2006, including:

• The people who are entitled to receive compensation
• How the compensation can be paid out
• The maximum amount of compensation that can be awarded

Where do I buy green slip insurance?

Every state has certain insurance companies that are licensed to sell CTP policies, and some of these companies will permit other agents to sell in their name.

To buy a CTP insurance policy, you will have to provide the insurer or the agent with information regarding your situation This can include things like:

• Your vehicle's make, model and manufacturing year
• The postcode of where you garage your vehicle
• Whether you use your vehicle for personal reasons or your business
• How old you are or the age of anyone else who may drive your vehicle
• Details of any accidents you have been involved in as well as your insurance and claims history
• Details pertaining to your driving record, including information on your driver's licence

If the CTP premium is determined based on incorrect information and it leads to a lower premium than you should actually be paying, the insurance company will demand that you pay the difference. If you don't do so, you could end up having the registration of your vehicle cancelled.

If purchasing from an insurance agent, the first thing you should do is ask which company they represent. As of March 2016, only AAMI, Allianz, GIO, NRMA and QBE are licensed to sell CTP insurance. You may also wish to get in touch with the insurer and check whether or not the agent in question has their authorisation.

Always compare prices in NSW, Queensland and the ACT, with the Australian government’s Motor Accident Authority green slip calculator. This compares all the licenced insurance companies.

How are CTP insurance prices determined?

Because it’s mandatory, CTP insurance must be affordable. There is an allowable price range, and all CTP insurance premiums must fall within these boundaries. They determine the risk level for a vehicle and its drivers, and then adjust prices based on these. They do this by categorising a range of factors.

Location and vehicle type

The state insurance organisation provides up to date charts showing the typical risk levels and costs associated with different types of vehicle in different regions. Prices are updated annually according to the latest figures. For example, the average cost per policy of claims tends to be smaller for motorcycles, higher for cars and even higher for trucks, and lower in metropolitan areas than country zones.

Different states and regions have different prices. Business vehicles are on the road more, and are therefore at higher risk, than private cars, while cars stored in a garage are safer than those parked on the road.

After using this to establish a price range for the vehicle itself, the insurer looks at your individual risk factors.

Individual risk factors

Insurance companies try to consider as many individual risk factors as they can, including:

• Your accident history
• How old the all the regular drivers of your vehicle are
• How old your vehicle is
• Whether you have comprehensive property insurance or third party property insurance
• Whether your vehicle is being used for personal or business purposes
• Whether you are renewing CTP or purchasing a new one policy

Generally, if you are a safe driver, you are more likely to receive a better price for your CTP insurance.

You are encouraged to shop around for green slip quotes in states where applicable, because within the allowable price range, insurers calculate prices differently depending on the situation of each individual driver. This means that renewing CTP insurance with the same provider does not guarantee you will get the lowest price. Shop around if you want to save some money.

Even if you are an extremely risky driver, the insurer cannot increase your premiums with very high loadings, which could make the premium unaffordable.

How much is CTP for a motorcycle?

There are five different classes of motorcycles for determining CTP costs. None of the six licensed insurers offer at-fault cover for motorcycles.

• Up to and including 225cc
• 226cc to 725cc
• 726cc to 1125cc
• 1126cc to 1325cc
• 1325cc and greater

More powerful motorbike categories carry higher costs, while the geographic region and personal circumstances also impact the price you pay for compulsory third party insurance. The extent to which personal risk factors are taken into account will differ between insurers, which is why you should take the time to get quotes from each of the six insurers offering motorcycle CTP insurance in NSW, Queensland and the ACT.

Frequently asked questions about CTP and greenslip insurance

• Do I have coverage outside my state?

  CTP insurance covers you in any state, anywhere in Australia.

• Who establishes the costs?

  The premiums are not the responsibility of the Government. Instead, they are calculated by the insurance companies. However, they are required to submit their premium schedules first to receive approval.

• How do I know my green slip is legitimate?

  If you think you may have purchased a fake green slip, you can confirm its authenticity by checking with the insurance company named on it. The six licensed CTP insurance companies are AAMI, Allianz, GIO, NRMA and QBE.

• What about learner drivers?

  Learner drivers require no special CTP procedures, although you are required to let your CTP insurance provider know about them if they ask.

• Can the insurer change my premiums?

  CTP insurers can put forward new pricing schemes anytime they wish but they must do so at least once a year or when the state insurance groups determines they have to, which is usually July 1st. Insurers regularly change CTP premiums.

• Why are my CTP premiums increasing?

  Premiums increase to reflect changes in driving risk levels. One of the main reasons premiums typically increase is because increasing numbers of people make claims.

• Are there price differences between CTP insurers?

  Some insurance companies will offer a cheaper green slip than others but the price of the CTP from each insurer should be identical for that company, regardless of whether you purchased it directly from the company or from an authorised insurance agent.

  When purchasing a green slip, you have to make sure that the price was correctly calculated according to the type of vehicle you own and the other details you provided. If this calculation is correct, then a CTP from the same insurance company should be the same price, no matter where you bought it from.

• Are there any differences between CTP green slips?

  There are no differences between CTP green slips, irrespective of which insurer you purchased yours from. The only difference lies in the AT Fault Driver Cover, which is an optional and additional feature.

  All green slips provide the statutory coverage the law requires. Of the six insurers, three companies also offer At Fault Driver Cover. This feature is definitely something you should consider because it offers benefits for the driver who was to blame for the accident.

• What is at Fault Driver Cover?

  With the green slip scheme, the driver to blame is only covered if he or she suffers catastrophic injuries. However, some insurance companies offer an extra benefit with their CTP green slips, namely At Fault Driver Cover. This policy ensures the driver who caused the accidents gets some level of compensation for the injuries they incur. The amount of compensation differs from one insurance company to the next. Only three of the six licenced CTP insurance companies offer At Fault Driver Cover. These are Allianz, GIO, NRMA Insurance and Zurich.

• When I sell my car, what happens to the green slip?

  A green slip travels with the vehicle, so when you sell your car or other vehicle, your green slip is transferred to the new owner. If you purchase a vehicle that has already been registered, you need to ensure that the registration is transferred to your name. Then, you won't need to purchase a new green slip for that particular vehicle until its current registration hits its expiration date.

  The RTA is notified of an ownership transfer whenever a vehicle is bought or sold. The RTA then informs the insurance company that issued the green slip of the fact that the vehicle has a new owner.

• Am I allowed to cancel my green slip?

  If you choose to do so, you may cancel your green slip. However, to do this, you need to contact the RTA to cancel your registration first. Subsequently, if you provide your insurance company with proof that you cancelled your registration, you are entitled to receive a refund that is equivalent to the amount of time left on your green slip.

  There is a chance that the insurance company might charge a penalty because you are cancelling your policy and you might not be able to get a refund of the MCIS Levy.

• Why is the price for a green slip different if I want to claim for GST?

  If you want to claim an input tax credit for GST, then be prepared to pay more for the green slip because prices are higher. Insurance companies can charge more because they do not receive an input tax credit for GST when paying out claims. Additionally, there are certain administrative expenses the insurer needs to cover when implementing the GST.

• Do all insurance companies notify the RTA electronically and how long does this process take?

  When you buy your green slip all insurance companies will inform the RTA electronically. If you buy your green slip direct from the insurance company, it takes about one hour for the company to inform the RTA. If you are working with an insurance agent or broker, then you will have to ask them how long it will take for the RTA to be notified.

• What is an e-green slip?

  An e-green slip simply refers to the RTA being informed electronically by the insurance companies of the purchase of a green slip.

• Is it possible to get a cheaper green slip from an agent or broker?

  The law states that the price for a CTP green slip from a certain insurance company has to be the same no matter where it is being procured from. So, you will pay the exact same amount, whether you are getting it from the company or from an agent.

  As long as the price of the CTP green slip has been calculated correctly according to your personal information and vehicle type, the price of this insurance policy should be identical, irrespective of whether you are buying it from the insurer or an agent or broker.

• What is an eSafety Check?

  eSafety Checks were previously referred to as Pink Slips and represent the report detailing the safety inspection of your vehicle. An eSafety Check is mandatory if you want to renew your vehicle registration.

• How often should I take my vehicle in for an eSafety Check?

  If your vehicle is new, you likely won't need an eSafety Check for the first five years. If you own a vehicle older than five years, then you will have to take it in for an eSafety Check every year. However, you needn't worry about timing because the renewal papers the RTA issues will inform you whether or not you need to take your vehicle in for an e-Safety Check before you can renew its registration.

  You must take your vehicle in to an Authorised Inspection Station, also known as an eSafety Station, to get your eSafety Check. These stations issue the eSafety Check electronically and send it straight to the RTA. You can find a list of eSafety Stations at myrta.com.

• Can I register my vehicle for less than a year?

  Cars, motorcycles and light trucks can be registered for either six or 12 months while trailers can be registered for three or 12 months. A green slip can also be bought for six or 12 months.

  However, keep in mind that when you buy your green slip, it has to be valid for the same length of time as the period for which you will be registering your vehicle. If you wish to renew the registration of your vehicle for less than a year, you can do it online at myrta.com.

• What if I am transferring my vehicle from another state?

  When transferring a vehicle from interstate, the registration requirements are somewhat different. However, you will still need to purchase a CTP green slip. Details regarding the requirements for the registration of a vehicle coming from another state are available at myrta.com.

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