Today June 24, 2024

Clear your confusion around compulsory third party insurance

CTP insurance covers the cost of third-party compensation. In a more general word, a compulsory third party protects the medical cost of the injured person. The insurance can compensate for the lost earnings of the injured person. In case of anything serious, the insurance policy will reimburse the ongoing treatment. 

The third parties who can claim against you include pedestrians, your passengers, cyclists, other car drivers, motorcyclists, and their passengers. In New South Wales, the vehicle driver is compensated unless the driver is responsible for a serious offense. You need to know that CTP won’t cover any damage caused to third parties or your car. If you want to get the damages covered, you have to get other car insurance like comprehensive car insurance

Car insurance

CTP facts:

  • In Australia, compulsory third-party insurance is a legal requirement. It would help if you got CTP insurance, along with your vehicle registration. If you are ever caught without compulsory third-party insurance, you may end up paying a heavy fine.
  • Across most of Australia, CTP is included in your registration fee. Only in a few places like New South Wales, South Australia, and Queensland can you choose your insurer. In New South Wales, you have to get compulsory third-party insurance before registering your car. In Queensland and South Australia, you have to nominate your CTP provider while registering your vehicle.
  • CTP allows you to drive around in Australia, but it doesn’t fully protect you from unfortunate events. The repairs, replacement, and maintenance of the car parts after an accident are expensive, and if you don’t have any coverage, you have to pay for the entire expense from your pocket.

After the accident, when your car is in the garage and going through the repair process, you have to choose other modes of transport to meet your daily needs. Suppose you can manage to pay a lump sum amount for repairing your vehicle and get back on your foot in no time. Then most probably, you can do without car insurance online. But, if you think it will be challenging to handle the finances just from your savings, you should opt for car insurance. The car insurance premium varies by a vast range, so you can easily find car insurance that fits your budget and suits your car needs.

Moreover, we live in the 21st century, and getting car insurance is no big deal anymore. All you need is a good internet connection to look for the best car insurance deal. Compulsory third-party insurance is a must. You can’t drive your car without it, but if you want extra protection, consider signing up for other car insurance like comprehensive car insurance/third-party insurance. When you buy a car for yourself, you wait for months, save every penny and then buy the car of your dreams. So purchasing an insurance policy that protects your vehicle and you is always worth it. Go ahead and get additional car insurance for your precious vehicle apart from CTP; it will serve you well. 

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Nathan Johnson