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What is compulsory third-party insurance?

Nick Bendel avatar
Nick Bendel
- 1 min read
What is compulsory third-party insurance?

Compulsory third-party insurance, also known as CTP insurance, is compulsory for anyone who wants to register a vehicle in Australia.

If you’re responsible for a car accident, your compulsory third-party insurance will be used to pay any compensation due to anyone who might be injured or killed.

If another party causes the accident, their compulsory third-party insurance will be used to compensate any victims.

Although CTP insurance is compulsory throughout Australia, conditions vary from state to state.

Click on the links below to find out more information about your state’s scheme:

Please note that compulsory third-party insurance does not cover you for vehicle damage or theft – that requires separate insurance.

Compulsory third-party insurance is just one of the costs associated with car ownership. Another is car loan repayments. You can use this car loan calculator to find out how much a car loan might cost you.


This article is over two years old, last updated on August 15, 2017. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car loans articles.

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This article was reviewed by Head of SEO Leigh Stark before it was published as part of RateCity's Fact Check process.