How Do Compulsory Third Party (CTP) and Third Party Car Insurance Differ?


If it’s your first time buying car insurance, it can be easy to lose track of what you’re covered for.

Giving your car the coverage it deserves starts with knowing the difference between Compulsory Third Party (CTP) and Third Party Car Insurance.   

What is Compulsory Third Party Insurance (CTP)?

CTP insurance covers compensation payments for people injured or killed in a motor vehicle accident. It doesn’t cover the cost of damaged vehicles and property, or damage to – or loss of – your vehicle.

In Australia, you’re required by law to have CTP insurance, but the way you buy it depends on where you live.  

In Victoria, Western Australia and Tasmania, CTP insurance is included in the price of your vehicle registration.

South Australian motorists can select a Compulsory Third Party (CTP) insurer. Lucky for you, AAMI has your SA CTP needs covered.

In New South Wales (where it’s better known as ‘Green Slip’) and Queensland, you must have CTP insurance before you can register your car. In the ACT, it's called Motor Accident Injuries (MAI) Insurance. You can buy it directly from a licensed insurer. Like other forms of car insurance, you’ll have to give details about yourself, other drivers and your vehicle when you apply for it.

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What is Third Party Car Insurance?

Third Party Car Insurance covers you for damage to another person's car or property caused by the use of your car - say, a neighbour's inconveniently placed fence or letterbox - and you're at fault. It's an economical option for car insurance liability cover if you can't afford to pay for repairs to other people's cars or property out of your own pocket.

AAMI offers Third Party Car Insurance with cover for your car for fire and theft available under the Fire, Theft & Third Party Property Damage level of cover.

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Property Damage

Covers damage to other people's vehicles or property. It also includes cover for damage caused to your car by uninsured drivers. This can be a good level of cover in case an accident happens and you can't afford to pay the repair costs for the other person’s vehicle or property.

This option doesn't include cover for any damage caused to your car by another driver, except for the limited cover for damaged caused by uninsured drivers mentioned above. It may be a good option if you have a car that you could easily afford to repair or replace – say, if you have a second-hand car that’s done a tonne of kilometres – but you don’t want to be up for massive repair bills in case you hit someone else’s car or property.

Fire & Theft

A higher level of cover to Third Party Property Damage, it can cover you for loss or damage to you car caused by fire, theft or attempted theft. It provides a layer of cover for damage to your own car.​

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Managing your Third Party Car Insurance online

Another key difference with Third Party Car Insurance is that you can manage many things online yourself, through My Account. This gives you the convenience of being able to jump onto your computer or mobile device 24/7 and do things like:

  • Track the status of a claim
  • Renew your policy
  • Update your personal details, such as your address
  • Pay your excess

And more...

Register for My Account


If you need to make a claim on your policy, we've made it a simple process. Learn more below. 

AAMI Claims

Choose the right cover for your vehicle

Car insurance is an important investment which can potentially save you thousands of dollars in out-of-pocket expenses. That's why it's important to get the right level of insurance, so you're properly covered if an accident happens.

Here's a brief run-down of the different types of car insurance:

CTP Insurance – only insures drivers for the costs of a third party's injuries after an accident.

Third Party Car Insurance – covers damage to other people’s vehicle or property.

Comprehensive Car Insurance – covers all your bases, including damages to your own vehicle or property, plus you can access the AAMI Safe Driver Rewards® program.

This is a good time to consider whether you'd like additional features built into your insurance, such as windscreen and window glass cover for repairs.

You can easily compare the price of AAMI Car Insurance when you get a quote online. Alternatively, drop us a line on 13 22 44, 8am-10pm (AEST) 7 days a week. Still need time to explore your options? Browse our car insurance online today!

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AAMI Car Insurance, Motorcycle Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. AAMI Roadside Assist is an Optional Cover only available in conjunction with AAMI Comprehensive Car Insurance. Any 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. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.