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CTP Insurance and Comprehensive Car Insurance
Car Insurance is an important investment that could save you thousands of dollars in out-of-pocket expenses. That's why it's important to get the right type of insurance from the get-go. Knowing the difference between Compulsory Third Party (CTP), Motor Accident Injuries (MAI) Insurance and Comprehensive Insurance is a good starting point.
What is CTP Insurance?
CTP Insurance covers an at fault driver’s liability for costs related to a third party's injuries after an accident, such as medical costs and lost income. It also covers an at fault driver’s liability to make compensation to people injured or killed in a motor vehicle accident. It doesn’t cover the cost of damaged vehicles and property, whether yours or belonging to a third party.
In Australia, you’re required by law to have CTP Insurance, but the way you obtain it depends on where you live.
- In Victoria, Western Australia,Tasmania and the Northern Territory, CTP insurance is included in the price of your vehicle registration.
- In Queensland and South Australia you can choose an CTP insurer when you register your car, or renew that registration.
- In New South Wales – where CTP is better known as ‘Green Slip’ —, you must buy CTP insurance before you can register your car.
- In the ACT, a very similar scheme to CTP is called Motor Injury Accident (MAI) Insurance. You can choose a CTP insurer when you register your car or renew that registration.
What is Comprehensive Insurance?
Unlike CTP Insurance, Comprehensive Car Insurance provides cover for damage to your car, as well as damage to other people’s cars and property after an insured incident. With AAMI Comprehensive Car Insurance, some of the things you’ll be covered for include:
- accidental damage
- theft or attempted theft, and
- weather events like fire and flood.
Add to that a hire car after an accident where you’re not at fault and give us the name, address and rego of the at fault driver, and new-for-old replacement if your car is written off after an insured incident. You’ll be eligible for this benefit if your car is less than two years old and you’re the first registered owner – some other terms and conditions apply here. Check out the Product Disclosure Statement for more information on inclusions and what’s not covered.
Key differences between CTP Insurance and Comprehensive Car Insurance
- Every registered vehicle in Australia has to be covered by CTP Insurance by law, whereas Comprehensive Car Insurance is optional.
- CTP Insurance only covers liability for personal injuries caused by a motor vehicle accident involving your vehicle.
- CTP Insurance will not cover costs associated with any property damage you may cause.
- Comprehensive Car Insurance generally covers you for the loss or damage caused to your vehicle, other people’s vehicles, and other people’s property.
Adding the cherry on top to your Car Insurance
Now’s a good time to consider whether you'd like additional features built into your insurance – like an excess-free claim for broken windscreen and window glass.
You can easily check the effect of optional covers on your AAMI Comprehensive Car Insurance premium when you get a quote online. Simply add or remove optional extras and see how your quote varies. Still need time to explore your options? Browse Car Insurance options online now with AAMI!
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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Terms, conditions and exclusions apply. Before buying Comprehensive Car Insurance, read the Product Disclosure Statement. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. The information in this article is intended to be of general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.