4 things you need to know about Compulsory Third-Party Insurance

You may have registered for compulsory third-party insurance, but do you know everything regarding CTP? Compulsory Third-Party Insurance (CTP) is also called green slip. It is paid together with your motor vehicle registration. Getting CTP insurance is one of the essential and compulsory steps that you have to take before registering your vehicle and get on the road. I know you are reading this post because you are interested in getting more information about this insurance. We are about to share the things that you should be aware of CTP insurance.

It is a must have

Perhaps you are wondering if you can have this insurance or not. Just as the name suggests, green slip insurance is a must have in all Australian states when registering your vehicle. The reason why it is required is that you and anyone involved in the accident and is being injured will be protected by the insurance provider. It covers not only the driver but also the passengers, cyclists, and pedestrians. Many states include CTP in your registration fees. This helps to avoid worrying about how to get it CTP or the charges included. But some states allow you to get the insurance separately.

It doesn’t cover unregistered vehicles

This is one thing that you should take into consideration when borrowing a car from a friend. Unregistered vehicles are not included. Apart from being not covered, driving an unregistered vehicle is illegal. If you cause an accident when driving an unregistered vehicle and you injure someone, the individual can make a claim which might result in you paying thousands of dollars.

States have different CTP requirements and factors

You might be thinking that since it is a must have insurance in most states, the factors, and requirements when having one are the same. Factors such as injury, fault, compensation or liability vary from one state to another. When it comes to conditions, different states have different requirements for identity and vehicle safety checks, and they must be fulfilled before registration. Therefore, familiarize yourself with the terms of your particular state before registering your vehicle.

Vehicle damages are not covered

This is what you should expect in almost every state. Having the CTP insurance doesn’t mean damages to your car or that of a friend will be covered. This also includes theft. Compulsory third party insurance will not cover theft. Alternatively, you will need to purchase a policy that covers damage to property as well as theft.  Knowing this earlier can help getting surprises when your vehicle is damaged.

Bottom line

Whether you have commercial insurance or pet insurance, having a policy pays. Although CTP only covers the injured people in an accident, it helps to reduce the financial burden that you might have to carry in the event you are involved in an accident. Additionally, it also insures you against any loss in case you are at fault. One way to get the most out of your CTP cover is by familiarizing yourself with your state requirements.

 

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