An accident may not always hurt you or damage your car. Sometimes it is the other road users that get hurt or whose property gets destroyed. Compensating them for the pain and damages caused may be a bit too costly; this is when your third party insurance comes in handy.
While you are not obliged to have insurance for your car, in Australia having third party insurance is compulsory. The policy was made obligatory so that all parties injured in an accident can get fair compensation. Without such a policy, some affected parties would go without fair compensation for their troubles. As a result, you cannot complete your car’s registration without this policy. After purchasing the policy, you are given a ctp green slip as confirmation. It covers the persons injured or killed when your car is involved in a road accident.
Though the insurance is compulsory in all the states, the foundation of other factors such as injury, compensation, and liability vary widely. Also, different states have different identity checks and vehicle safety requirements when it comes to registration. Therefore, it is vital that you get to know your state’s unique requirements for identity checks and safety before registration. This way, you will be better prepared for the activity. You can access this information from the various official state websites.
It is important to note that this compulsory insurance doesn’t apply to your vehicle or other party’s damaged vehicle. This is true for all Australian states. You will have to find a separate insurance policy for your vehicle and third party property as well. For instance, you will need a comprehensive insurance plan to cover your vehicle from theft or damages due to an accident.
Unfortunately, most states have only one underwriter for CTP third party insurance. This means that you get to exercise choice or look for cheaper alternatives. If you live in a state with multiple CTP insurers, you can ask for quotes and choose one that best suits your budget.
