Photo: Zigzig20s, CC BY-SA 3.0, via Wikimedia Commons
Every registered car in Australia carries compulsory third party (CTP) insurance, but CTP only covers injuries to people. It does not pay for damage to cars or property. This guide explains how CTP works in each state and territory, the other types of car insurance, and what learners, P platers and their parents should check before a new driver gets behind the wheel. It covers general principles only, not any insurer’s products or prices.
Key facts
- CTP is compulsory everywhere and is tied to the car’s registration, not to the driver.
- In NSW you buy CTP (a Green Slip) separately before you register. In the other states and territories it is included in or paid with registration.
- CTP never covers damage to your car, another car or property. For that you need private insurance.
- Premiums depend on things like your age, driving record and where you live. New drivers usually pay more.
- A higher excess lowers the premium, but you must be able to pay it if you claim.
How CTP works in each state
| State | How you get CTP | Scheme notes |
|---|---|---|
| NSW | Buy a Green Slip from one of the licensed CTP insurers before you register | Regulated by the State Insurance Regulatory Authority (SIRA). Injured people can claim regardless of fault, subject to exceptions |
| VIC | Through registration | Transport Accident Commission (TAC) no-fault scheme |
| QLD | Paid with registration to TMR; you choose from the licensed CTP insurers | Overseen by the Motor Accident Insurance Commission (MAIC). Fault-based. A change of insurer applies from your next renewal |
| WA | Applies to all vehicles when licensed | Run by the Insurance Commission of WA. Covers injury and death caused to others, plus care and support for catastrophic injuries |
| SA | A component of the registration fee | CTP (Bodily) Insurance plus the Lifetime Support Scheme |
| TAS | Through registration | Motor Accidents Insurance Board (MAIB). Claims can be made regardless of fault where a Tasmanian-registered vehicle is involved |
| ACT | Through registration | ACT Motor Accident Injuries Scheme, no-fault |
| NT | Paid at the same time as registration | No-fault scheme administered by the Motor Accidents Compensation Commission |
What CTP will not do
- Pay for damage to your car, another car or property (all states).
- Protect you fully if you break the rules. In WA, the Insurance Commission can pursue a driver for compensation costs if they drove without the right licence, under the influence, or in an unsafe car. In the NT, benefits can be cut, for example by 25 per cent for not wearing a seatbelt, or to nothing for driving with an expired, cancelled or suspended licence.
The private insurance options
| Type | Covers other people’s cars and property | Covers your car |
|---|---|---|
| Third party property damage | Yes | No |
| Third party property, fire and theft | Yes | Only if stolen or damaged by fire |
| Comprehensive | Yes | Yes, even if you caused the crash; also theft, fire and weather |
For a new driver, third party property cover is the minimum worth having. One at-fault crash into a newer car can cost far more than a year’s premium. Comprehensive cover makes sense if you could not afford to repair or replace your own car.
Learners: whose insurance covers you?
A learner usually drives the family car or a supervisor’s car, so it is that car’s policy that matters. Before the first drive:
- Read the policy wording for how it treats learner drivers and drivers under a set age.
- Tell the insurer a learner will be driving. Ask whether they need to be listed and whether an extra excess applies.
- Check the excess. Many policies charge an extra excess for young or inexperienced drivers. Know the total you would pay before you claim.
- Use a registered car. Without registration there is no CTP, and that is a serious offence.
Driving lessons in an instructor’s car fall under the driving school’s arrangements. Ask the school if you are unsure.
P platers: your own car or a parent’s policy?
Driving a parent’s car
- Ask the insurer to list you as a driver, and give accurate details of who drives the car most.
- Expect the premium or the excess to change while a P plater is listed.
- Do not list a parent as the main driver of a car you mostly drive. Wrong details can put a claim at risk.
Your own car
- Register it in your state first. That is when CTP starts. See registration, CTP and roadworthy rules in each state.
- Check the car is legal for your P plates. Several states ban high-powered cars for P platers under 25. See P plate rules compared.
- Compare the total cost, not just the premium: excess, young driver excess and what is covered.
Legal ways to lower the premium
- Choose a safer, cheaper car. Insurers price on the car as well as the driver.
- Pick a higher excess you can genuinely afford.
- Cut add-ons you will not use.
- Build a clean record. Premiums depend on driving history, and offences on your Ps also cost demerit points. See demerit limits for L and P platers.
- Review the policy every year instead of letting it roll over.
After a crash
Stop, help anyone injured, exchange details and report where required. Injury crashes must be reported in every state, and in WA you report injury crashes through the online crash reporting facility. Then contact your insurer, and the CTP insurer or scheme if anyone was hurt. Full steps: what to do after a crash in Australia.
Common questions
Is CTP enough for a P plater?
It covers injuries to other people, which is the biggest risk. It does not cover cars or property, so a crash into another car could leave you paying for repairs yourself.
Do learners need their own insurance?
Usually not. The car’s owner holds the policy. Check that the policy covers a learner and what excess applies.
What is a young driver excess?
An extra amount some policies charge on top of the standard excess when the driver at the time of a claim is under a set age or inexperienced. The amount and age vary by policy.
Does my CTP cover me interstate?
CTP is attached to the car’s registration and is required for interstate-registered cars too. Claims after an interstate crash depend on the schemes involved, so contact the scheme in the state where the car is registered.
Can my parent put the car in their name and list me as an occasional driver?
Only if that is true. If you are the main driver, say so. Inaccurate details can lead to a refused claim.
Where can I compare policies fairly?
ASIC’s Moneysmart website explains the types of cover and what to check. Read each insurer’s product disclosure statement before you buy.
Sources
- ASIC Moneysmart, “Car insurance”, “Choosing car insurance” and “How to save money on car insurance” (moneysmart.gov.au)
- State Insurance Regulatory Authority, “How to buy a Green Slip” and “Interstate (non-NSW) crashes and CTP insurance claims” (sira.nsw.gov.au)
- Motor Accident Insurance Commission, “What is CTP insurance?” and “Buying CTP insurance” (maic.qld.gov.au)
- Department of Transport and Major Infrastructure WA, “Drive Safe” handbook, section 4.1 Motor injury insurance (transport.wa.gov.au)
- Government of South Australia, “The Driver’s Handbook (MR200, February 2026)” (mylicence.sa.gov.au)
- Northern Territory Government, “NT Road Users’ Handbook”, Fifth Edition (nt.gov.au)
- Transport Accident Commission (tac.vic.gov.au)