Car insurance: What’s the difference between Compulsory Third Party (CTP) and Third Party Property Damage?

Compulsory Third Party (CTP) Insurance is mandatory in Australia before you can register your vehicle – it’s a legal requirement for all car owners. While cover can vary state-to-state, it generally covers you, or anyone who drives your vehicle, for injuries caused to passengers and other road users in an at-fault motor accident. In Victoria, Western Australia, Tasmania, and the Northern Territory, your registration will include this insurance cost. However, in the Australian Capital Territory, you’ll need equivalent Motor Injury Accident Insurance.

Heard the term Green Slip? CTP is known as a Green Slip in New South Wales (NSW). Unlike CTP in other states, you must buy a NSW CTP Green Slip before you can register your vehicle, and it covers the liability of anyone who drives your vehicle for injuries and death caused to other parties in a motor vehicle accident anywhere in Australia.

Since 1 December 2017, a Green Slip can also provide certain limited statutory benefits to anyone who drives your vehicle if injured and at fault in a motor vehicle accident.

As long as your vehicle’s registered in NSW, the Green Slip covers the driver of your vehicle for injuries caused to other parties in a motor vehicle accident 24 hours a day, Australia wide.

Third Party Property Damage (TPPD) Insurance, also known as Third Party Car Insurance, covers your liability to pay for damage you may cause to someone else’s car or property. This also covers legal costs and expenses from relevant court proceedings. Unlike CTP, which covers your liability to pay for injuries caused to other people, this insurance covers damage to other people’s cars or property. Damage to your own car is not covered. If you don’t have either Comprehensive or TPPD Insurance, these costs will be an out-of-pocket expense if you’re in an accident and are at fault.

Here’s a summary of the differences between CTP and Third Party Property Damage:

Interested in learning more about our Car Insurance? Check out the car insurance section of our website.

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. 

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.