Compulsory Third Party (CTP) insurance — called a Green Slip in NSW — is the one form of vehicle insurance that is legally required to register a motor vehicle in Australia. Without it, you cannot put plates on your car. Yet most drivers have only a vague idea of what it actually covers, and many NSW drivers significantly overpay because they do not compare prices before renewing.
CTP covers personal injury to people — not vehicles. If you are involved in a motor accident (whether at fault or not), CTP pays for medical treatment, rehabilitation, lost income, and compensation for injuries suffered by people in the accident. It covers drivers, passengers, pedestrians, cyclists, and anyone else injured as a result of the vehicle's use.
What CTP does not cover: damage to vehicles (yours or anyone else's), damage to property (fences, walls, road infrastructure), and theft or weather events. For those, you need separate voluntary car insurance — third party property, third party fire and theft, or comprehensive cover.
CTP is injury insurance, not vehicle insurance. The confusion between the two is the most common misunderstanding about car insurance in Australia. A driver with only CTP and no voluntary insurance has zero cover for vehicle damage in any scenario.
CTP schemes differ significantly between states and territories. In NSW, Victoria, Queensland, and Western Australia, CTP is purchased from licensed private insurers as part of the registration process. In South Australia, Tasmania, the ACT, and the NT, CTP is managed by a government scheme bundled directly into registration costs.
| State/Territory | System | How you pay |
|---|---|---|
| NSW | Private insurers (NRMA, GIO, QBE, Allianz, Suncorp, AAMI) | Separate Green Slip before registration |
| Victoria | TAC (government monopoly) | Bundled into registration fee |
| Queensland | Private insurers (RACQ, Suncorp, Allianz, QBE, NRMA) | Part of registration process |
| WA | ICWA (government monopoly) | Bundled into registration fee |
| SA, TAS, ACT, NT | Government schemes | Bundled into registration fee |
NSW is the state where CTP comparison matters most, because there are six licensed insurers and premiums vary by insurer, vehicle type, postcode, and driver profile. The price difference between the cheapest and most expensive insurer for the same vehicle and driver in NSW can be $100 to $300 per year.
The NSW Government operates a free comparison tool at greenslipcheck.com.au where you can enter your vehicle and driver details to see current prices from all licensed insurers side by side. Renewing without checking this tool first means potentially overpaying by hundreds of dollars for an identical product — CTP coverage in NSW is standardised by legislation, so the cheapest policy is the same cover as the most expensive.
Factors that affect NSW Green Slip pricing: vehicle type and age, postcode (urban vs regional), at-fault accident history, driver age and experience, and the number of drivers on the policy. High-powered vehicles and younger drivers attract higher premiums.
Queensland also has a competitive CTP market with multiple licensed insurers. Queenslanders can compare at myCTP.com.au. The same principle applies: coverage is legislatively standardised, so price is the only meaningful variable when comparing policies from different insurers.
If you are injured in a motor accident in Australia, the CTP insurer for the at-fault vehicle pays your injury claim. In NSW, this is handled under the Motor Accident Injuries Act framework. Claims can cover hospital treatment, rehabilitation, lost earnings, and pain and suffering compensation depending on the severity of injury and the scheme rules in your state.
In no-fault scheme states (Victoria and South Australia), you can claim for your own injuries from the CTP scheme regardless of who caused the accident. In fault-based schemes like NSW, the at-fault driver's insurer pays.
The biggest practical gap left by CTP-only cover is property damage liability. If you drive a $5,000 car and cause $50,000 in damage to someone else's vehicle, CTP pays nothing toward the vehicle damage. You are personally liable for that amount unless you have at least third party property insurance.
This is why financial advisers and consumer groups consistently recommend that drivers who choose not to take out comprehensive cover at minimum maintain third party property insurance. The premium is modest — typically $300 to $500 per year — and the liability risk it eliminates is significant.
Check whether your car insurance is at a competitive price and covers what you need beyond CTP.
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