Your InfoChoice guide to car insurance
What is CTP car insurance?
CTP is compulsory third–party insurance. It’s also known as “green slip” insurance in some states of Australia and it’s the minimum level of insurance that you can be roadworthy with.
CTP covers death and injury to other people if you cause a traffic accident. Each state and territory has its own requirements. In NSW you can choose from a panel of insurers. In Victoria, CTP insurance is already included in your car registration.
What is TPP?
TPP is Third Party Insurance and covers the costs of repairing or replacing any property, like another car, if it is damaged by your vehicle.
Some TPP policies also have an “uninsured motorist extension” that protects you if you have an accident with another driver who is uninsured but at–fault.
Third Party Property, also sometimes called Third Party Car insurance is often taken out by young people who may not be able to pay for more expensive Comprehensive Insurance.
People driving older, second-hand cars that may not be worth enough to insure can use TPP to insure themselves against the costs of damaging other people’s property.
Having insurance for your car protects you, your property and other road users. Some types of insurance are not just peace of mind in the event of an accident or theft but a legal requirement in Australia.
There are many different types of insurance and before you decide what is right for you, spend some time on a comparison site having a look at the different policies on offer.
For car owners, there are FOUR types of insurance you need to understand.
1. Compulsory Third Party (CTP)
2. Third Party Property (Car)
3. Third Party Fire & Theft
What is TPP Fire and Theft?
Third Party Property Fire and Theft insurance is a step up from simple TPP and, in addition to cover for damage to other people’s property, you will get cover if your car catches fire or is stolen.
What is comprehensive car insurance?
Comprehensive car insurance is the highest level of cover you can have. Comprehensive Car Insurance covers damage to your car, other people’s vehicles if you are at fault as well as fire and theft.
I’m still paying off my car; do I need insurance if I have a car loan?
If anything, you need insurance even more if you have a car loan because if your vehicle is written off and you need to buy a new one, you’ll also have the burden of paying off the loan on the old one.
Some lenders will insist on you having insurance and proving it before they will approve the loan.
You need to be honest with your insurer
If you make a mistake or an omission in the information you provide your insurer, even if it’s a genuine mistake, then your claim may be rejected or not paid fully.
You need to tell your insurer if you make any modifications to the car, like tinted windows, as well as if you move house, start using your car for work or add another driver to the policy.
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InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.
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