What is CTP insurance?
CTP insurance is compulsory in Australia, and can cover costs associated with injuries to other people if you're involved in an accident. However, it won't cover loss or damage to your own car or property – that’s where comprehensive car insurance comes in.
If you’re in New South Wales, Queensland, or South Australia you must buy CTP insurance separately before registering your car. In the Australian Capital Territory, you’ll need to arrange Motor Accident Injuries (MAI) insurance. It’s like CTP but covers everyone injured in an accident, regardless of who’s at fault.
In Victoria, Western Australia, Tasmania and the Northern Territory, CTP insurance is included in the price of your vehicle registration.
Who does CTP insurance cover?
CTP insurance can cover an at-fault driver’s liability for costs related to a third party's injuries after an accident. These third party’s could be your passengers, other road users like cyclists and pedestrians. The costs related to these injuries can include things like medical bills and lost income.
CTP insurance can also cover an at-fault driver’s liability to pay compensation to people injured or killed in a motor vehicle accident.
What’s the difference between CTP, comprehensive and third party property damage insurance?
Understanding the differences between CTP Insurance and other types of insurance is crucial for making an informed decision on your car insurance. At a high level:
- CTP insurance is mandatory across Australia and covers injuires to others.
- Comprehensive car insurance covers accidental loss or damage to your car, as well as damage your car causes to other people’s vehicle and property.
- Third party property damage insurance covers damage your car causes to other people's car or property, but doesn't cover injuries to people or damage to your own vehicle.
CTP vs comprehensive car insurance
While CTP insurance is compulsory and focuses on covering injuries to others, comprehensive car insurance can cover accidental loss or damage to your car. Plus, it can cover any damage you may cause to someone else’s car or property following an insured event such as collisions, theft, and natural disasters.
CTP vs third party property damage insurance
Third party property damage insurance is another type of car insurance that covers loss or damage to other people's car or property caused by the use of your car. You should be aware that damage to your own car is generally not covered as part of this policy.
Read more:
- What to do when someone hits your parked car?
- How to drive a manual car: a guide for beginners
- What to do in a minor car accident
Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance. 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 is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
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