Compulsory Third Party (CTP) insurance in Australia

Compulsory Third Party (CTP) insurance

Compulsory Third Party (CTP) insurance is a mandatory component of vehicle registration across all Australian states and territories. However, the exact schemes and average costs for a 4-wheel car can vary significantly.

Choice vs. Included: NSW, QLD, SA, and ACT allow you to choose your CTP insurer, potentially offering competitive pricing. VIC, WA, NT, and TAS include CTP as part of your vehicle registration fee.
“No-Fault” vs. “At-Fault”: This determines how compensation is paid out. Most states are moving towards or already have “no-fault” elements, especially for catastrophic injuries.
What CTP Covers: Crucially, Compulsory Third Party (CTP) insurance only covers personal injuries or death caused by your vehicle. It does not cover damage to your car, other vehicles, or property. You need separate car insurance (e.g., Third Party Property or Comprehensive) for that.

Here’s a breakdown by state/territory, including approximate average prices for a standard 4-wheel passenger car where available for Compulsory Third Party (CTP) insurance. Please note that prices are subject to change and can vary based on individual circumstances, vehicle type, location, and insurer in states where you have a choice.

CTP by State in Australia and Average Price for a 4-Wheel Car:

New South Wales (NSW)

Scheme Type: “No-fault” CTP scheme (known as “Green Slip”). Injured individuals are covered regardless of fault, with some exceptions for serious driving offences. Catastrophic injuries are covered under the Lifetime Care & Support Scheme.
Insurer Choice: Yes, you can choose from licensed insurers (e.g., AAMI, Allianz, GIO, NRMA, QBE, Youi).
Average Price (4-wheel car): Prices are highly variable based on factors like postcode, driver’s age and driving history, vehicle type, and intended use. For a standard motor car, recent estimates from Forbes Advisor (using specific example criteria) showed quotes ranging from around $430 to $480 annually. It’s best to use the SIRA Green Slip Price Check website for an accurate quote.

Queensland (QLD)

Scheme Type: “At-fault” scheme, meaning injured parties generally need to prove fault to receive compensation. However, catastrophically injured individuals (including, in some cases, the at-fault driver) are covered by the National Injury Insurance Scheme (NIIS).
Insurer Choice: Yes, you can choose from licensed insurers (e.g., Allianz, IAG, QBE, Suncorp, Youi).
Average Price (4-wheel car): For Class 1 vehicles (cars and station wagons), the average annual CTP cost is around $369.60. This is generally a set amount that doesn’t vary significantly between insurers for the same vehicle class.

South Australia (SA)

Scheme Type: Generally a “no-fault” scheme with exceptions. Compensation is provided regardless of fault, and seriously injured individuals are covered by the Lifetime Support Scheme (LSS).
Insurer Choice: Yes, you can choose from five government-approved CTP insurers (e.g., AAMI, Allianz, NRMA, QBE, Youi).
Average Price (4-wheel car): CTP premiums are generally uniform across insurers for the same vehicle type and location. For a 4-cylinder sedan or station wagon, the metropolitan rate is around $660 annually.

Australian Capital Territory (ACT)

Scheme Type: “No-fault” scheme (Motor Accident Injuries – MAI Scheme). All injured persons receive entitlements for treatment, care, and lost income for up to 5 years, regardless of fault (unless charged with a serious driving offence).
Insurer Choice: Yes, you can choose from four licensed insurers.
Average Price (4-wheel car): Annual premiums for passenger cars generally range from $390.60 to $409.20. Prices are “community rated” by each insurer, meaning all passenger cars generally pay the same premium with a specific insurer.

Victoria (VIC)

Scheme Type: “No-fault” scheme, managed by the Transport Accident Commission (TAC). Benefits are payable regardless of fault. Common law damages are available for those with “serious injuries” if another party was at fault.
Insurer Choice: No, Compulsory Third Party (CTP) insurance (called the “Transport Accident Charge”) is included in your vehicle registration fee and administered solely by the TAC.
Average Price (4-wheel car): The CTP component is part of the total registration fee, which varies by risk zone (metropolitan, outer metropolitan, rural) and vehicle type. For a sedan, station wagon, hatch, or 4WD, the total registration fee (including the CTP charge) can range from approximately $780.10 (rural) to $906.60 (metropolitan) annually. The exact CTP portion is not usually itemised separately for the public.

Western Australia (WA)

Scheme Type: Generally an “at-fault” scheme (Motor Injury Insurance) with a “no-fault” component for catastrophic injuries (Catastrophic Injuries Support – CIS scheme).
Insurer Choice: No, Compulsory Third Party (CTP) insurance is provided through the Insurance Commission of Western Australia (ICWA) and is included in the vehicle registration fee.
Average Price (4-wheel car): For a standard car, the motor injury insurance component (CTP) costs $491.40 annually.

Northern Territory (NT)

Scheme Type: “No-fault” CTP scheme (Motor Accidents Compensation – MAC scheme). Coverage extends interstate for NT-registered vehicles.
Insurer Choice: No, Compulsory Third Party (CTP) insurance is included in your vehicle registration fee.
Average Price (4-wheel car): The yearly MAC costs are $552.05 (plus GST) for a standard passenger car.

Tasmania (TAS)

Scheme Type: “No-fault” scheme that also allows for common law claims against at-fault drivers.
Insurer Choice: No, Compulsory Third Party (CTP) insurance is provided by the Motor Accidents Insurance Board (MAIB) and is included in the registration fee.
Average Price (4-wheel car): The CTP component is part of the overall registration fee. Tasmania generally has some of the lowest CTP costs in Australia. While a specific average for a 4-wheel car is not easily itemised from the total registration, the CTP portion is absorbed into the registration fee.

Sources

https://maic.qld.gov.au/for-drivers/about-ctp-insurance/

https://www.qbe.com/au/news/ctp-explained

https://www.iselect.com.au/car-insurance/ctp-insurance/tas/#:~:text=CTP%20insurance%20costs%20in%20Tassie,3

https://www.qld.gov.au/transport/registration/fees/comparison

https://www.iselect.com.au/car-insurance/ctp-insurance/tas/#:~:text=CTP%20is%20compulsory%20for%20Tassie%20drivers&It%20is%20essential%20as%20it,2

https://www.icwa.wa.gov.au/motor-injury-insurance/insurance-policy

https://www.ctp.sa.gov.au/for-vehicle-owners/ctp-premium/how-ctp-premiums-are-set

https://maic.qld.gov.au/for-drivers/about-ctp-insurance/#:~:text=In%20Queensland%2C%20CTP%20insurance%20is,their%20insurance%20premium%20when%20they

https://www.qbe.com/au/green-slip-insurance/ctp-queensland

https://www.iselect.com.au/car-insurance/ctp-insurance/qld/

https://www.service.nsw.gov.au/nswgovdirectory/lifetime-care-and-support-scheme-icare