Compulsory Third Party (CTP) Insurance is a statutory requirement when registering your motor vehicle in Australia. It is automatically applied, and you have no choice but to take it. However in Queensland you do have the choice of which CTP Insurance provider to whom you wish to insure with.  

CTP Insurance will often be the first insurance many people will have, especially when most of us get our first car in our teens or early twenties.

A survey was conducted and it was noted that less than half of people over the age of 55 that were surveyed, understood what CTP coverage was, whilst in the teens it was less than 1 in 4.

So what exactly is CTP Insurance, and does it cover me in the event of an accident?

When you buy or sell a car/vehicle, CTP Insurance automatically transfers to the new owner.

Compulsory Third Party insures any person except the driver who was at fault and who is injured or killed in a motor vehicle accident as result of a driver’s negligence.

It provides financial assistance to cover items like hospital and doctor’s fees, medication, physiotherapy, the injured person’s rehabilitation after an accident, damages to the family in the event of death, legal expenses and loss of income.

CTP does NOT cover vehicle damage, animals, buildings, electricity poles, fences, gardens or personal property that may be damaged, it only covers people.

This is why it’s important to have Comprehensive Motor Vehicle Insurance, as it picks up everything that CTP doesn’t, including repair/replacement costs for your vehicle and others, towing and storing costs, hire car options, windscreen options etc. see Motor Vehicle Insurance for further information.

You do have the option of taking out Motor Vehicle Insurance through an Insurance Broker, who can advise on the right insurance for your needs and the most comprehensive policy for the right price.

CTP insurance is not sufficient enough when you own a vehicle in the event of an accident.

We get asked the question all the time, what happens if the Third Party doesn’t have the right, sufficient or the lack of insurance? This situation can get really untidy, but with an Insurance Broker by your side, we will always see this situation through on your behalf to make sure you get your full entitlement.

There are various types of Motor Vehicle Insurance covers available, and a number of Insurer’s who provide different levels of cover.

We do see it’s important to raise awareness though about CTP insurance, and we stress the importance with knowing what you’re actually covered for, because if you are not insured correctly, this can have huge financial impact in the event something goes wrong.

Speak to your Citycover Insurance Adviser on (07) 3270 1500 to discuss your car insurance. We can arrange cover for all types of vehicles, and we can complete your insurance suite so you are 100% covered in the event of a claim.

Article and Information sourced from Prof. Allan Manning’s Blog  – Thought leader in Insurance, Risk Management and Business Continuity. Find his website here:-