How to Compare CTP Green Slips

CTP coverage is mandatory in Australia.

Compulsory third party (CTP) insurance is mandatory for all drivers in Australia, except those driving automobiles owned by the Commonwealth of Australia, as they operate under a separate arrangement with the country. As with auto insurance in most countries, there are specific minimum coverages required. However, there are also options that protect drivers beyond the minimum, should they require it in case of an accident. CTP coverage minimums protect drivers liable for an accident against claims and damages.

Instructions

1. Determine the level of coverage desired. Again, there are country mandated minimums for insurance coverage that will protect at-fault drivers. However, several insurers offer additional protection to the at-fault driver in the case of an accident.

2. Choosing at-fault driver coverage requires careful review of the policy specifics. Each of the insurers offering this important coverage has restrictions that should be noted prior to purchase. Examples of these exclusions are limits on the types of injuries insured and the amounts paid for covered injuries.

3. Take note of recent changes to policy verbiage, particularly as it relates to added at-fault driver coverage. Of the five insurers currently offering this type of policy, one (Allianz) has not amended its policy to reflect the legislative change that occurred on April 1, 2010, which provided up to $5,000 for at-fault drivers for lost wages, etc. All at-fault insurance policies had previously contained verbiage nullifying coverage if the at-fault driver received any compensation. GIO, NRMA, QBE and Zurich insurance companies have updated their at-fault driver policies to reflect the change, and do provide additional benefits to those they insure.

4. Differences among CTP coverages are limited to price, the ease of purchasing the green slip and the aforementioned at-fault coverage options. Researching each company as it relates to these key areas may save time and trouble in the future. Also, it may be worth considering one of the companies that offer at-fault coverage even if you choose not to opt for that now. Should needs change in the future, you may find it more efficient to add coverage with an existing insurer than to start the process over with a new company.

5. Review the resource below for a relatively quick and easy comparison tool for CTP green slip coverages. Whether you select at-fault coverage or not, the site offers options for policies both with or without this add-on.

References

• Budget greenslips: About greenslip CTP insurance policies
• Australian Treasury: What is CTP insurance
• greenslips.com.au: At-fault driver cover

Resources

• Greenslips.co.au: Compare