CTP or Greenslip

Vehicles registered in all states and territories of Australia must be covered by compulsory third party (CTP) insurance. Broadly, CTP insurance covers the cost of treatment and compensation for people injured in road accidents.

CTP insurance schemes vary across Australia because they are legislated on a state basis. Insurance in some states is provided by private insurers and in others by government bodies. CTP insurance is highly regulated because it is compulsory. Private insurers are licensed to offer CTP only under strict guidelines in state and territory Acts and Regulations.

In most states and territories, CTP is automatically included with the registration fee. NSW is the exception: you must purchase CTP separately before registration and it is commonly called a green slip. In NSW there are six providers of CTP insurance: AAMI, Allianz, CIC Allianz, GIO, NRMA Insurance and QBE. They are licensed by the State Insurance Regulatory Authority (SIRA).

Only NSW, Qld and ACT offer a choice of CTP provider and SA will do so from July 2019.

1. What is CTP insurance?

Compulsory third party (CTP) insurance is designed to protect you from claims made by people injured in an accident involving your vehicle. It covers injured drivers, passengers or pedestrians but does not cover any kind of property. In most states and territories, CTP is automatically included with the registration fee. In NSW, you must buy your CTP or greenslip separately before you can register a vehicle.

2. What’s the difference between the states?

State and territory governments are responsible for roads, registration and licensing. Each has an authority that provides CTP insurance or regulates private CTP insurers.

  • In some states and territories, CTP insurance is provided by private insurers and in others, CTP insurance is provided by the state government
  • Some state CTP schemes are based on finding the driver at fault in an accident and others do not consider fault
  • In all states and territories except NSW, CTP insurance is included with the registration fee
  • In NSW, you must buy a CTP green slip before you can register a vehicle.
CTP and registration Insurers At-fault or no-fault
NSW Choice of insurer, CTP paid before rego 6 Private insurers Mainly fault-based lump sums
Vic CTP included in rego Government Hybrid: no-fault defined benefits and lump sums for serious injury
Tas CTP included in rego Government Hybrid: no-fault defined benefits and lump sums
Qld Choice of insurer, CTP included in rego 4 Private insurers Fault-based lump sums
SA Insurer allocated since July 2016, CTP included in rego 4 Private insurers since July 2016 Mainly fault-based lump sums
WA CTP included in vehicle licence (rego) Government Fault-based lump sums
ACT Choice of insurer, CTP included In rego 4 Private insurers Fault-based lump sums
NT CTP included in rego Government No-fault defined benefits only

3. Does my CTP insurance cover me if I have an accident in another state?

Yes, the CTP insurance on your vehicle covers you throughout Australia, even if you have an accident in another state or territory. All vehicles registered in Australia are required to be covered by CTP insurance.

4. What happens to my CTP insurance if I move interstate?

You cannot take your CTP insurance with you. When you move interstate, you then follow the rules for the CTP scheme operating in that state. Some schemes offer a choice of provider, some are based on driver fault and all, except NSW, include the price of CTP in registration.

If you are moving interstate from NSW, you need to cancel your registration and greenslip. Your CTP insurer must see proof of cancelled registration before they will offer any refund.

5. Can I stay with the same insurer if I move interstate?

CTP schemes, coverage and cost vary from state to state so you may not get the same insurer. Only NSW, Qld and ACT offer a choice of CTP provider:

  • AAMI provides CTP insurance in ACT, NSW and SA
  • Allianz and QBE provide CTP in NSW, Qld and SA
  • GIO provides CTP in ACT and NSW
  • NRMA provides CTP insurance in ACT, NSW, Qld and Tas.

6. What does "third party" mean?

There are always three parties to CTP insurance:

  • The first party is you, the owner or driver of the at-fault vehicle
  • The second party is your CTP green slip provider
  • The third party is the person injured in the accident.

7. Is CTP the same as third party property insurance?

No, this is a common misunderstanding as both types of insurance refer to third parties. CTP stands for compulsory third party insurance. You must have this cover to protect yourself from claims made for people (other drivers, passengers, pedestrians) injured in an accident involving your vehicle. CTP does not cover property.

Third party property insurance is one type of motor vehicle insurance. It protects you from claims made by third parties for damage to property, not people. It includes damage caused by your car to other cars and property, but not damage to your own car.

CTP is compulsory, as the name implies. Third party property insurance is not compulsory.

8. Compare types of motor insurance

What it covers What it does not cover What to consider
Compulsory third party (CTP) Protection against claims for compensation if you injure or kill someone in an accident Damage to your car, other cars, property, or theft Compulsory
Comprehensive Damage to your car, including fire and theft, damage to other cars and property, plus optional extras Damage to your car if not roadworthy or licensed, or when driver is affected by alcohol or drugs
Compulsory third party (CTP)
The broadest and most expensive cover for your car, other cars and property
Third party property only Damage caused by your car to other cars and property plus cover for legal costs Damage to your car or theft
Compulsory third party (CTP)
Protects against damage to other cars, usually chosen by driver with a low-value car
Fire and theft only Limited cover for your car for damage or loss because of fire or theft Damage to your car (other than fire or theft), other cars or property
Compulsory third party (CTP)
Provides some protection for your car but less than comprehensive cover