Registration, CTP and insurance

By the end of this topic you can

• You can explain what registration and CTP are for.
• You can describe the difference between CTP and property damage insurance.
• You can check a practice car is legal before you drive it.
• You can name the extra insurance options a car owner may choose.

What you need to know and understand

• All vehicles driven on the road must be registered.
• CTP covers injuries caused to other people in a crash. It does not cover damage to cars or property.
• In NSW, CTP is called a green slip and you need one to register the car.
• In SA, registration includes a CTP component and you choose from government-approved insurers when you renew.
• In WA, compulsory injury cover is the Motor Injury Insurance scheme run by the Insurance Commission of Western Australia.
• In NSW, vehicles older than 5 years generally need a safety check to renew registration.

Three layers of cover

If you crash into an expensive car with only CTP, you may have to pay for its repairs yourself. That is why many owners add at least third party property cover. When a learner or P plater drives, check the policy covers them, because some insurers charge an extra excess for young or inexperienced drivers.

• CTP (compulsory): covers injury to other people. In most states it comes with registration.
• Third party property (optional): covers damage you cause to other people's cars and property.
• Comprehensive (optional): also covers your own car, for example after a crash, theft or storm.

Checking a car before you practise

1. Check the registration is current using your state's online rego check.
2. Confirm that CTP is in place (in NSW, a current green slip).
3. Ask the owner whether their insurance covers a learner driver.
4. Make sure the car is roadworthy and the number plates are visible and not covered by L plates.

Unregistered cars

NSW says that if you drive an unregistered car and crash, you are not covered by CTP, and there are severe penalties. You can usually only drive an unregistered vehicle to get it registered or inspected, or with a special permit. If registration lapses, renew before you drive.

Common mistakes

• Assuming a car is registered because it has plates. Check online.
• Thinking CTP pays for car repairs. It only covers injuries.
• Not telling an insurer a learner will drive the car.
• Letting registration expire between renewals. In NSW, registration is cancelled if not renewed within 3 months of the due date.

Test yourself: Registration, CTP and insurance

Answer each question, then read the explanation. Questions come in a random order each time.

Go deeper

• Car Registration Australia
• Car Insurance for Learners and P Platers in Australia