Life can bring unexpected surprises. No matter what your age or background is, there are numerous circumstances that we cannot control. And for these instances, it is essential to have something that will give us the protection that we need to avoid further inconvenience and shelling out a lot of money.
This is where the insurance comes in. It comes in many types and forms, but the main purpose of the insurance is to provide protection in case something happens – to your health, life, and/or property. Most Australians have car insurance. It comes in many types, one of which is Compulsory Third Party insurance (CTP).
In this article, let’s delve into what CTP means and what it is for:
- Compulsory third party insurance comes with the registration of your car or vehicle. It covers compensation for the victim if you are at fault in an accident and injure another person. The other person could be the driver of the other vehicle, the passengers, or a pedestrian.
- If the accident results in people being unable to go to work, or if those who are injured need medical treatment, your CTP insurance provider will pay an amount to cover the medical expenses and/or the loss of income because of the accident.
- As a car owner, it is mandatory to get CTP insurance. It offers protection not only for those who are injured but also for the at-fault driver or the one who caused the accident since he/she will not have to personally pay any compensation.
- Keep in mind that different states have different processes when it comes to CTP insurance. For instance, in Queensland, it comes with your rego, following the same period as your rego. In other words, you’ll have coverage whenever you renew. Make sure to check the process related to CTP insurance with your state or territory department of transport.
- Don’t be confused – CTP is different from comprehensive car insurance. While CTP insurance provides protection for those who are injured as a result of the accident, it doesn’t cover damage to property. If there are dents or scratches to your car, CTP will not pay any compensation for these.
Do you have other ideas when it comes to compulsory third party insurance or in general, car insurance in Australia? You can share your insights in the comments section.Read More →