Mandatory third party Insurance or CTP Green Slips give third party coverage. Before the establishing of laws in Australia making third party insurance obligatory, the vehicle owner would usually request additional insurance to cover third party liability injury. Although, this was never an obligatory requirement.
As a result, many felt that innocent victims were left with large, costly bills because the driver of the vehicle chooses not to carry this type of third party insurance product. This altered following a public outrage over a handful of accidents which appeared to acquire extra coverage. Rightly so, the change in the NSW State Government's law, Motor Accident Act 1988, was amended. It now includes a requirement that drivers have compulsory third party insurance for all of their registered vehicles.
Coverage Under General CTP Green Slip Policies:
There are various types of car insurance products on the market, but you cannot escape having CTP Greenslip protection. Nearly all car insurance providers will offer this type of protection along with other car insurance plans such as comprehensive coverage. Under this type of insurance, the driver is protected from any liability of personal injury to anyone that has been hurt due to a motor vehicle collision you have caused or are found responsible for. Should someone be hurt while you are driving and cause their injury, this insurance will cover their personal injury claim against you.
Your CTP Greenslip coverage does not provide any type of insurance protection from damage to property or to the other person's car. It will not give you any cover for your personal medical expenses.
CTP Greenslips will cover:
* Other people who are on the road with you that are involved in the accident
* Pedestrians pedal cyclists or others on foot
* The people you have in your vehicle
* Injuries that are caused by your trailer
Questions for Your Provider:
CTP Greenslips are available through a variety of lenders, all of which you should talk to. You will be able to shop around for the right level of insurance protection at the right price. There are currently 7 insurers that provide CTP Greenslips as required by law. This includes:
* CIC Allianz
The pricing on these plans differs from one insurer to the next, but is depending, at some level, on your own situation. For example, premium prices for CTP Greenslips is set by a combination of factors including your driving and accident record, the age of those people who will drive your car, the type and age of the vehicle you have, the use of your vehicle (private use as compared to business use) as well as if the purchase will be a renewal or new.
Find out from these potential insures how your driving situation compares to the types of insurance they offer.
Ways to Save on CTP Greenslip Insurance:
Perhaps the best way to get the lowest costing CTP Greenslips possible is to use the Motor Accidents Authority's website where you can use a very helpful calculator. This calculator will take some basic information from you and compute the various quotes from each of the seven insurers. It saves you time and money by providing you with the lowest costing CTP Greenslips possible.
Additionally, you can phone, and get the individual insurers to give you information on the cover and packages they provide. While more time consuming, this more personal approach will deliver the best results for you in terms of cost.
Also, give thought to your driving tendencies, as well as your vehicle. Realize that your costs may be more if you are a reckless driver, but improving these habits over the long term will get you lower rates.
Beware Before Signing:
Before you sign on the dotted line with any insurer for your CTP Greenslips, do your homework. Read through the contract to know what you are signing and how much it will cost you. Do these numbers match the quotes you were given? Because the government regulates who can provide CTP Greenslips for you, you are likely to have no problem trusting the company, but that doesn't mean you shouldn't take note of the contract's fine details.
Additional Coverage to Consider:
While CTP Greenslips are a very necessary type of insurance coverage for your vehicle (you can't drive or get a registration for your car without it) this is not the only type of insurance that you need to remain safe. Comprehensive coverage is also required. It will provide you with protection from loss of your vehicle as well as that of another person you are involved with in an accident.