Compulsory Third Party (CTP) insurance is the mandatory cover that comes into play when a driver causes a road accident that injures someone. CTP covers personal injury - medical bills, lost income, and rehabilitation - not vehicle damage. For vehicle damage you need separate comprehensive or third-party property insurance.
State-by-state CTP regimes
| State | How it's sold | Typical cost (passenger car) |
|---|---|---|
| NSW | Separate 'Greenslip' from one of 6 licensed insurers | $540-$720/yr |
| VIC | Bundled into TAC fee in rego (single state monopoly) | ~$520/yr |
| QLD | Bundled into rego, but choice of 4 insurers | ~$330/yr |
| WA | Bundled into rego (single insurer - ICWA) | ~$430/yr |
| SA | Bundled, but choice of 4 insurers | ~$540/yr |
| TAS | Bundled into rego (single insurer) | ~$280/yr |
| ACT | Bundled, choice of 4 insurers | ~$540/yr |
| NT | Bundled (TIO monopoly) | ~$510/yr |
CTP and used-car transfers
CTP transfers with the rego in the same transaction, but does NOT transfer between states. When you buy a car in VIC and register it in QLD, the VIC TAC component is forfeited (no refund on partial year - that's the seller's loss) and you start fresh with QLD CTP at the destination state's rate.
Driving an unregistered vehicle has no CTP cover at all - if you cause an injury on a UVP (unregistered vehicle permit) and didn't buy the optional one-day CTP, you're personally liable for the victim's medical bills. Always confirm CTP coverage before driving.