If you own a vehicle or plan on buying one, you have probably heard of compulsory third party insurance, or CTP. This type of insurance is a requirement across all states and is intended to provide protection when someone is injured or killed in an accident involving your vehicle. You must have CTP in order to register a vehicle in most states.
Why Do I Need CTP?
A vehicle accident can lead to enormous expense in terms of property damage and medical costs. If an accident happens and the driver who was at fault has no insurance and does not have the means to pay for all damages, then those affected may not be able to receive the compensation they need to recover. CTP provides a basic level of protection for everyone who uses Australia’s roads.
What Does CTP Cover?
CTP does more than cover drivers of vehicles. Some factors, like liability, fault, and compensation, will vary on a state-by-state basis. In general, CTP will cover the following:
- The driver
- Any other individual involved in an accident
CTP Specialist Information
What Does CTP Not Cover?
CTP’s focus lies primarily on people injured or killed in an accident involving a motor vehicle. There are some situations that may be covered by other types of insurance, but not by CTP. These include:
- Vehicle theft
- Damage to the driver’s vehicle
- Damage to other drivers’ vehicles
- Damage to property
The driver who is at fault will also not be covered to the same extent as others involved in the incident. In some cases, the driver may not be covered at all. The only exception is if the at-fault driver is severely and profoundly injured, they may be covered by the National Injury Insurance Scheme (Queensland).
CTP Insurance Providers
Different states have different insurance schemes for CTP. In Queensland, there are a number of private insurers with whom you can get CTP insurance cover. This is paid with your car registration (rego) every year.
Should I Still Buy Comprehensive Insurance?
While CTP is a good thing for everyone, it doesn’t cover all damages that are incurred in an accident situation. That’s why many drivers choose to also buy comprehensive insurance. This will provide additional protection that usually extends to your vehicle and property. While this may lead to an added expense, it can save you thousands of dollars should you be involved in an accident while driving.
Stay Legal with Insurance
CTP is a necessary part of owning and using a motor vehicle. It provides a basic level of protection that can help you and those you share the road with recovery after an accident. Every driver should understand how CTP works and what is covered before they get behind the wheel. If you need legal advice related to CTP or an auto accident, contact Carew Lawyers to find answers and get help with a claim.