Bilal Info | insurance in Australia

Here's a look at why having additional insurance on top of your CTP is not just a good idea, but also essential for your peace of mind.

Is car insurance compulsory?

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.

It’s really not worth the risk.

Do the laws change in different states?

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.