Compulsory third party insurance (CTP)

Compulsory third party insurance (known as CTP or greenslip) is mandatory in Australia — you must have this cover to drive on our roads. If you're in New South Wales or Queensland, you'll need to purchase CTP before you can register your car. If you're anywhere else in Australia, CTP is included in your rego costs.

Getting CTP can seem like a convoluted process but that's where we come in — we're here to make it as simple as possible for you. This article will cover:

• What CTP is
• Who offers CTP in Australia
• A guide to how much it'll cost you

What is CTP insurance?

Compulsory third party insurance (CTP) is mandatory insurance that you have to have if you want to drive in Australia. It covers you for legal liability in the event you get into an accident and injure someone. It only covers the person involved, not the vehicle. For vehicle coverage, you'd need other types of car insurance.

For those who live in NSW and QLD, you'll need to purchase CTP before you can register your car. If your car is registered, then you already have CTP. For those anywhere else in Australia, CTP is already part of your registration fees.

CTP for a new car

If you're buying a new car and they're registering it for you then the dealership will likely organise CTP for you. This may not always be the case so it's best to check with them. All in all though, if the car is registered, this means it has CTP.

CTP for a car from a private seller

CTP insurance is linked to the vehicle, not the owner, so when you buy a car, the CTP comes with it. You'll need to organise for a transfer of registration and when this is done, the CTP is automatically brought across too.

Who offers CTP insurance in Australia?

CTP insurance is available for purchase from 7 different insurers in Australia. For NSW drivers, you can get a free quote from each of these below. These include:

• Youi
• AAMI
• GIO
• Allianz
• NRMA
• QBE
• Suncorp (QLD only)

In NSW, each insurer charges a different amount for CTP so it's worth comparing your options.

In QLD, the cost of CTP is consistent across all who offer it.

How much does CTP cost?

The cost of CTP insurance differs based on your car model, how long you've been licensed, your age and whether you use your car for private or business use. For some, CTP can be as little as $300, for others it can be as much as $1,200. Luckily, it's easy to input your details just once and get a quote from multiple insurers in one go.

Greenslips 4 Earth is a free tool that allows you to compare 6 CTP providers in NSW. It doesn't add any markup to your quote, it's just a simple online calculator. If you like what you see, you can purchase your CTP policy from there.

Greenslips 4 Earth (NSW only)

• Compare 6 CTP insurers in NSW.
• Simple online calculator.

Get a quote

CTP for Queenslanders

CTP for those in QLD is much simpler — it's the same cost across all 3 insurers who offer it; QBE, Allianz & Suncorp. The exact cost will depend on your personal profile but our research shows that prices start around $370 for a class 1 car or station wagon. This is accurate as of August 2024.

"My CTP insurance was recently up for renewal so I had a look at what other providers to compare my options. The thing about CTP is that it's a legal requirement so all the products have to cover the same thing. This means that it's worth shopping around for a cheaper price because you're essentially getting the same product but for less money. I looked at all providers in NSW and picked the cheapest one. Took less than 10 minutes. "

Peta Taylor

Finder crew member

Other types of car insurance

Compulsory third party insurance (CTP) will cover your legal liability if you injure another person. CTP doesn't cover vehicles and won't pay to repair your car or the other person's car. For that, you have a few other options.

Comprehensive car insurance

This is the highest level of cover available. It includes cover for damage to your own car as well as damage to other people's cars and property.

Third party, fire & theft

This includes cover for damage you cause to other people's cars and property, as well as cover for your own car if it's stolen or damaged by fire. Any other damage to your own car is not covered.

Third party property damage

This includes cover for damage you cause to other people's cars and property. It does not include cover for damage to your own car.

FAQs

• Is CTP the same as rego?

  No, CTP is a type of insurance, rego is just registration. Both are mandatory if you want to drive in Australia. In NSW and QLD, you need to buy CTP insurance before you can register your car.

• Is CTP different to third party insurance?

  Yes. Despite the similar names, compulsory third party (CTP) insurance is different to third party property damage and third party fire & theft insurance. CTP is mandatory and it only covers you for injuries you cause to another person. Third party property damage and third party fire and theft insurance is optional cover and it provides cover for damage to other people's cars and property.

• Is CTP different from comprehensive insurance?

  Yes. CTP stands for Compulsory Third Party insurance and it only covers you for injuries you cause to another person. Comprehensive insurance is an optional type of insurance and it covers your car and other people's cars if they're involved in an accident.

• Is CTP the same as greenslip?

  Yes. CTP is often referred to as 'greenslip' insurance.

• How do I transfer my CTP insurance?

  You don't actually need to do anything to transfer your CTP insurance. If you've bought a used car then you need to transfer the registration and once that's done, the CTP automatically transfers to you. CTP is applied to the car, not the owner. So whoever registers the car, owns the CTP.

• What does CTP mean in insurance?

  It stands for Compulsory Third Party insurance and it is mandatory insurance. You must purchase this if you intend to register a vehicle.

• Do I need both CTP and comprehensive insurance?

  You need CTP insurance - this is mandatory cover and it's illegal to drive without it. Comprehensive cover is an optional type of insurance and only you can decide if you need it. There's plenty of benefits to having it, but it can be expensive.

• Is CTP included in rego in QLD?

  No. You will need to purchase CTP before you can register your car if you're in Queensland or New South Wales.

• How much is CTP in QLD?

  The exact cost will depend on your personal circumstances but our research shows that a Class 1 car or station wagon can be insured for around $370 per year. This is accurate as of August 2024.

• Is RACQ still doing CTP insurance?

  No, RACQ no longer offers CTP insurance. Only Allianz, QBE and Suncorp offer CTP insurance in Queensland.

• How does CTP work in South Australia?

  In South Australia, CTP is known as the Motor Accident Injury Assessment Scheme (MAIS). A portion of your car registration fees go towards your compulsory third party insurance and this portion is then paid to one of four different approved insurers.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio