Whether operating a car safely or not, get ahold of some vehicle insurance ASAP on top of Compulsory Third Party (CTP) in Australia. Differentiating these types of vehicle insurance is how you’re going to avoid paying out of pocket for an accident. And, while some vehicle insurance (CTP) in Australia is mandatory, it’s limited.
The most important thing to know is Compulsory Third-Party (CTP) insurance is the only mandatory insurance for all vehicles across Australia. Though each state deals with it differently, it only covers damage to people by a vehicle. This means it doesn’t cover any other damage to vehicles or property.
Understanding vehicle insurance and rego in Australia is the key to avoiding an expensive accident. This article goes through how each state handles rego (registration/the license plate), CTP and what other options are out there.
If you’re choosing insurance, more emphasis should be on insurance coverage, versus the price. Obviously an accident without insurance would cost a lot more. I recommend taking out roadside assistance as well. It’s less than A$200 a year and covers everything from a vehicle breakdown to locking keys in a vehicle.
If you’re hiring (renting) a vehicle, make sure to ask about the insurance coverage. Take out extra insurance if possible because it’s common for travellers and Australians alike to hit wild animals. And, many car hire companies will charge the person renting the vehicle whether an accident is their fault or not.
I broke this up into each state’s system for a comprehensive guide to vehicle insurance in Australia. I’ve also included when a vehicle may need to go for a safety or roadworthy check for each state.
Important: this information is up to date as of the publication date, I encourage everyone to do their own research, this is just a guideline.
New South Wales
Sydney is one of the most popular destinations for travellers in Australia. In NSW, CTP is also called a Green Slip, which can be purchased for six months or a year altogether. The Green Slip is separate from registration, but must be purchased first.
When purchasing a vehicle with rego it means the vehicle still has CTP insurance. Without rego, you can’t drive a vehicle, or could face a fine of up to A$1,200 according to the NSW Government. This goes for nearly every state in Australia for driving a vehicle without CTP.
Vehicles over five years old with rego in NSW must have a roadworthy test before insurance can be purchased. A roadworthy test is valid for six months so this doesn’t have to left to the last minute. After this test, the auto shop electronically sends it to the Road and Maritime Services (the government) that way the vehicle owner can insure their vehicle.
Victoria
Victoria has the Great Ocean Road, Wilson’s Promontory National Park and so many other great sightseeing opportunities. All CTP in VIC goes through the Transport Accident Commission. The charge vehicle rego includes CTP. It can be purchased for three, six or twelve months.
As for Roadworthiness, a certificate must be done before the vehicle is sold, which is the responsibility of the seller. Which makes it easier for the buyer and possibly less worrisome if it’s an older vehicle.
Queensland
In the sunshine state CTP is purchased through multiple insurance retailers and is included in registration. Vehicle owners can switch CTP providers when rego is up for renewal, there’s even a CTP Premium Calculator online. This way vehicle owners can find the best deal.
QLD calls its roadworthiness a safety check. It’s only necessary when transferring a vehicle to a new owner, new state or if the vehicle doesn’t have current registration.
Northern Territory
NT combines it’s CTP with rego and one company manages it, the Motor Accidents Compensation. This government-owned scheme provides personal injury coverage for NT motor vehicles. It’s the same company that would provide support or compensation for people injured in an accident.
For roadworthiness, the check is only necessary for vehicles over five years. Then, again at 10 years and annually after that. If purchasing a vehicle in the NT it’s important to know when the most recent roadworthy test was complete.
Western Australia
CTP and rego in WA is purchased together. Similar to other states, it goes through one company: the Insurance Commission of Western Australia. This company manages all claims of crashes from WA licensed vehicles. Rego is up for purchase for three, six and 12 months for light vehicles.
There isn’t a roadworthiness check necessary for private vehicles in WA, but vehicles need an immobilizer for theft prevention. It’s a small device, which acts as a separate key in addition to the vehicle’s key to start a vehicle. WA vehicles should already have this, but it makes it difficult to transfer over a vehicle, as someone has to pay for installation.
Many travellers go for WA vehicles because neither the buyer nor seller of a vehicle has to go in-person to hand in vehicle transfer forms. Instead the new vehicle owner can mail the forms in. This isn’t the best idea if there’s a wrong address on the form. Because if something goes wrong with the rego through the mail the new purchaser may never know and could deal with hefty fines.
Southern Australia
SA’s insurance goes through four insurers. This makes it easy for people to shop around for the best potential deal. Insurers for CTP can’t set premiums for individual drivers, leaving a smaller chance for higher fees. Vehicle owners purchase it together with vehicle rego.
A vehicle needs to go for a roadworthy inspection when it’s over seven years old and over 4.5 tonnes (not generally normal vehicles) or had a type of major construction. A rebuild meaning a non-standard engine fit, adding seats, and many rebuilds among others.
Tasmania
On this island, off the big island, CTP is also with a government organization: the Motor Accidents Insurance Board. It also manages vehicle rego. The premium, or fees for CTP depends on a vehicle’s classification, which owners can find online form. The premiums are in packages for twelve months for most vehicles and six for others.
TAS’s vehicles have to undergo a roadworthy test every year for vehicles over five years. Also when transferring ownerships—as in selling a vehicle.
Australian Capital Territory
In ACT, you can purchase insurance from four companies. Premiums aren’t based off of risk factors such as location, age or driving record. This means a more average pay for vehicle owners.
Vehicles registrated in ACT only have to do roadworthy inspection when transferring ownership of a vehicle over six years old. Other reasons for the inspection include interstate used vehicles transferred to ACT, defect clearances and vehicles that are unregistered for more than a year, among others.
For other help about vehicles in Australia, check out how to choose a vehicle to travel the country, understanding road tolls and finding a reliable mechanic.
