Need CTP Insurance? Learn how it operates in your state and compare your options.
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. You are covered by your CTP insurance round the clock for any passengers in your vehicle and for other people on the roads, including pedestrians and cyclists. You are also covered for any injuries resulting from the use of a trailer.
CTP insurance is only for injuries to people. It does not cover any damage to vehicles or property.
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.
All CTP insurance in your state is exactly the same, except for two things:
At-fault cover: This is additional cover offered by some insurers in the event of an accident that you are found to be responsible for. Standard CTP still covers at-fault drivers to some extent, but people who choose this option have higher payout limits and are covered for a wider variety of at-fault circumstances than those who don’t.
No one is a perfect driver and the cause of an accident is often disputed. There’s always a chance that you may be found at fault.
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.
Because prices can be similar, it’s good to look for safe-driver and multi-policy discounts from insurers.
There are only seven CTP insurance companies
Choosing a provider is easy because only seven insurance companies in Australia are licensed to provide CTP insurance. Of these, three have the option of additional at-fault cover.
Insurer
Offers At-Fault Cover?
Allianz
Yes
GIO
Yes
NRMA
Yes
Youi
No
AAMI
No
CIC Allianz
No
QBE
No
What a compulsory third party insurance covers
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
How to buy CTP 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, CIC 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 CTP insurance prices are 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.
CTP insurance premiums on motorcycles
There are five different classes of motorcycles for determining CTP costs. None of the seven 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 seven insurers offering motorcycle CTP insurance in NSW, Queensland and the ACT.
Frequently asked questions about CTP insurance
A CTP green slip is a type of mandatory insurance policy that provides coverage for damages claims for the person driving a vehicle that is to blame for an accident, or involved in a no-fault accident. It ensures that injured people can seek compensation.
CTP stands for "Compulsory Third Party". Greenslip, green slip, ctp green slip and compulsory third party insurance are all interchangeable terms for the same type of insurance.
Yes. You cannot register a vehicle in Australia with it.
CTP insurance covers you in any state, anywhere in Australia.
CTP insurance provides coverage for the compensation of someone who sustained injuries or was killed in a vehicle accident. This includes pedestrians, passengers, cyclists, motorcyclists, and the person driving the other vehicle. The guilty party is also covered but to a lesser degree. Trailers are covered by the insurance of the vehicle towing them.
A green slip does not provide coverage for the following:
A driver who is to blame for the accident doesn't have access to all of the benefits of the scheme, unless they have suffered devastating injuries as laid out by the Lifetime Care and Support Scheme. In this case, the latter insurance plan applies;
Damage your vehicle or property incurred;
Damage caused to the other person's vehicle or property;
If your vehicle was stolen.
CTP green slips are sold by insurance companies but these have to be licenced to do so. They must also be in full compliance with the stipulations of the Motor Accidents Compensation Act 1999. At the moment, there are seven insurance companies who are authorised to sell CTP green slips in Australia.
Licenced insurance companies are regulated by the State Insurance Regulatory Authority.
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.
The premium you pay is used to cover compensation payments, research and education projects as well as to improve road safety.
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 seven licensed CTP insurance companies are AAMI, Youi, Allianz, CIC Allianz, GIO, NRMA and QBE.
Learner drivers require no special CTP procedures, although you are required to let your CTP insurance provider know about them if they ask.
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.
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.
There are currently seven insurance companies licensed to sell CTP in Australia. They are Allianz, AAMI, CIC Allianz, GIO, NRMA and QBE.
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.
Each insurance company is responsible for determining their own prices. And while these prices are regulated, insurance companies use different variables and give these factors different levels of importance when working out what they will charge in terms of premiums.
The simplest way to conduct a price comparison between the green slips offered by each of the seven insurers is to use the price service comparison service on offer. The green slip calculator will supply you with a price from each insurer for a green slip based on the type of vehicle you own and other information. You will also be supplied with contact information for each of the insurers so you can contact the one you decide on to make the purchase.
The green slip can be purchased via phone and the insurance company will inform the RTA electronically. However, the green slip calculator only works for common types of vehicles, so if your vehicle isn't part of one of these classes then you will have to contact the insurance companies separately to conduct your own comparison. You will also have to contact the insurers directly if you want to claim an input tax credit for GST.
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 seven 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.
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.
No, because only three of the seven licenced CTP insurance companies offer At Fault Driver Cover. These are Allianz, GIO, NRMA Insurance and Zurich.
All insurance companies have a phone number specifically for quotes and the purchase of green slips. Keep in mind that not all of these companies have an online system via which you can get a quote or buy your 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.
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.
There are quite a number of variables that insurance companies take into account when they calculate the premium they will charge for a green slip. These factors also have different levels of importance for each insurer, which further influences the price and is a good reason for people to shop around for quotes.
The main variables taken into consideration include geographic area, vehicle type, vehicle age, how the vehicle performs, age of the driver, driving history and your history in terms of the number and value of the claims you have lodged.
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.
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.
An e-green slip simply refers to the RTA being informed electronically by the insurance companies of the purchase of a green slip.
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.
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.
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.
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.
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.
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products. Picture: Shutterstock
Cover for your vehicle against fire and theft, and legal liability protection when you’re responsible for an accident that damages someone’s car or property.
Shannons is focused on modified cars, classic rides and extra benefits for motor enthusiasts. Find out what makes it different and whether you can save money by insuring with Shannons.
a council bus swiped my park car. i paid the excess and higher car as i could not drive the car from the damage. im out of pocket $1200 am i allowed to be reimbursed this money through my insurance company from there insurance company?
As to whether you’re entitled for a reimbursement, that will depend on the type of policy you have. For instance, Compulsory third party (CTP) car insurance can only cover the injuries caused by the accident but not for the damages incurred in the vehicle or property.
I suggest you refer to your policy or contact you insurer directly if you’re still unsure of your coverage. Meanwhile, you can go through our step by step guide on this page on what you can do after a car accident.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Thanks for your question. finder.com.au is a comparison service and we are not permitted to provide our users with personalised financial advice. For any tax or financial advice, you should consult a licensed professional. I am unaware of a situation where you can claim a deduction for MCIS Levies. However, if you’ve cancelled your vehicle’s registration, you may be entitled to a partial refund. If you would like to know more, please head to the Motor Accidents Authority website.
Thanks for your question. It depends on the type of third party insurance. A Greenslip is also called Compulsory Third Party or CTP insurance. However, there is also Third Party Property Damage (also known as TPPD) and Third Party Property Damage Fire and Theft (also known as TPPFF&T), which are different, non-compulsory, types of car insurance.
I have been asked to search for a reasonable green slip company. Before I do this, I want to ensure that it is legal and above board. My question is:
This person has registered his car in his partner’s name. She doesn’t drive, but he is going to drive it instead. He himself has his own car. Is this legal and above board. I do not want to organise a Green Slip for him if this is not okay.
“In your name – make sure you insure your vehicle in your own name. If you insure your vehicle using someone else’s name (such as your parents), you may not be covered in the event of a claim.”
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.
We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use for more information about our services and our approach to privacy.
a council bus swiped my park car. i paid the excess and higher car as i could not drive the car from the damage. im out of pocket $1200 am i allowed to be reimbursed this money through my insurance company from there insurance company?
Hi Jamie,
Thank you for reaching out to us.
As to whether you’re entitled for a reimbursement, that will depend on the type of policy you have. For instance, Compulsory third party (CTP) car insurance can only cover the injuries caused by the accident but not for the damages incurred in the vehicle or property.
I suggest you refer to your policy or contact you insurer directly if you’re still unsure of your coverage. Meanwhile, you can go through our step by step guide on this page on what you can do after a car accident.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Cheers,
Ash
I am a temporary resident. Can I claim MCIS Levies (part of CTP payment ) on my personal tax return?
Hi John,
Thanks for your question. finder.com.au is a comparison service and we are not permitted to provide our users with personalised financial advice. For any tax or financial advice, you should consult a licensed professional. I am unaware of a situation where you can claim a deduction for MCIS Levies. However, if you’ve cancelled your vehicle’s registration, you may be entitled to a partial refund. If you would like to know more, please head to the Motor Accidents Authority website.
I hope this was helpful,
Richard
Do i need a greenslip and third party insurance or are these the same thing?
Hi Emma,
Thanks for your question. It depends on the type of third party insurance. A Greenslip is also called Compulsory Third Party or CTP insurance. However, there is also Third Party Property Damage (also known as TPPD) and Third Party Property Damage Fire and Theft (also known as TPPFF&T), which are different, non-compulsory, types of car insurance.
I hope this was helpful,
Richard
I have been asked to search for a reasonable green slip company. Before I do this, I want to ensure that it is legal and above board. My question is:
This person has registered his car in his partner’s name. She doesn’t drive, but he is going to drive it instead. He himself has his own car. Is this legal and above board. I do not want to organise a Green Slip for him if this is not okay.
Laraine
Hi Laraine,
Thanks for your question. According to an article on the Roads and Maritime Services website:
“In your name – make sure you insure your vehicle in your own name. If you insure your vehicle using someone else’s name (such as your parents), you may not be covered in the event of a claim.”
I hope this was helpful,
Richard
IS MCIS LEVY PAYMENT COMPULSORY?
Hi Brian,
Thanks for your question.
The MCIS Levy Payment is a part of your green slip cost and so is therefore a compulsory payment.
I hope this has helped.
Thanks,
Elizabeth
Where is the list of licensed insurers?
Hi John,
Thanks for your comment.
Please find our car insurance comparison here.
Hope this helps,
Shirley