Information on CTP or Compulsory Third Party Insurance


Car insurance is compulsory for all the car owners; but Compulsory Third Party (CTP) is also extremely important, but for different kind of reasons. It covers cost of all compensation claims if you or anybody else driving your car, causes an accident which kills or injures other road users. It is a form of personal injury insurance, but note that CTP does not cover damage or loss to property. It includes yours as well as other people’s vehicles.

CTP is compulsory in every state of Australia to an extent that you cannot register your vehicle if you do not have a policy in place. In most states, Compulsory Third Party insurance is included along with your registration.

Why is CTP compulsory in some states?

It is compulsory for the reason that compensation for loss incurred is not dependent on only the means of the person who is responsible for the loss. In the absence of CTP insurance, compensation might not be available equally to all parties, who might be entitled to some sort of compensation.

How to get a great deal on Compulsory Third Party (CTP)?

While Compulsory Third Party (CTP) covers you for any injury liability, you will also require to get a Comprehensive or Third Party insurance, in case you cause damage and an accident to your own or to someone else’s vehicle or property. So, that you can get some sort of coverage.

These are some tips to find the right CTP insurance policy for your requirement:

  • Try going for value over cost

Make sure that the policy you take covers you well. Price is secondary.

  • Do not only renew, review

Go through or review your policy well at renewal time. Find out what other offers competitors have come up with. You may be surprised at the amount of money you can save.

  • Avail the discount you deserve

Before choosing any policy, even if you are a safe driver, shop around well for the best available discounts.

  • Read everything

Make it a point to check each and every detail closely, so that you can avoid any surprises at the time of claim. For e.g. are there different rules for different drivers? Does your cover also pay for a hired car, when yours is at the shop? Are you properly covered for an agreed or market value?

  • Remember more could be less

If you have taken a multi-car policy, they offer great value. So, remember, if you have more cars covered in the policy, the better you can save.

The easiest, convenient and quickest way of insuring your 4-wheeler is to buy one online. Research and compare the various quotes by different providers in the market. An ideal CTP policy is the one which offers adequate coverage at a very low premium. For the best deals on CTP, always choose to compare QLD car insurance providers with iSelect. Their consultants will give you helpful and free advice on how to choose the perfect policy and its benefits from various participating insurers.