Third Party Car Insurance

Buying a new car is an exciting prospect, but your research doesn’t end when you finally select a brand and model. The next task is to insure your car – and in particular, you must apply for third party car insurance.
All car owners in Australia are required to pay for compulsory third party car insurance.

Compulsory third party, also known as CTP or a “Green Slip” in NSW, insures you or anyone driving your car against liability for death or injuries caused by a car accident where you are at fault. It covers passengers of all vehicles involved in the accident, pedestrians and cyclists.

It does not, however, cover injuries caused to you or the driver of your car if you are at fault. It also does not cover damage caused by your car to a car or property owned by a third party in the event of an accident you may have caused.

For this you’ll need third party insurance, which covers damage you cause to other cars or property and therefore provides additional peace of mind. When you consider that even a small bump to another car can cause thousands of dollars in damage, it’s easy to see why third party insurance is important.

In all states except New South Wales, Queensland and the ACT, the state government includes compulsory third party insurance as part of your registration fee. In New South Wales, you must organise your own insurance before you register your car, while in Queensland you nominate your preferred insurance company when you pay your registration.

However, third party car insurance does not cover any damage caused to your car where you are at fault, and it does not cover theft of your car either. That’s where comprehensive car insurance comes in – it can cover just about everything, including accident cover irrespective of who is at fault, theft and fire damage, and helpful extras such as towing after an accident and a replacement car while yours is being repaired, depending on the car insurance provider and policy.

When researching car insurance, a good place to start is comparing car insurance premiums and benefits. This will help you find the car insurance that’s right for you.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.