No driver wants to think about disaster striking on the road, but everyone should be prepared for it. Third party car insurance ensures you have financial protections in place to cover costs related to injuries or vehicle and property damage you may cause while driving.
Both mandatory and optional levels of third party insurance generally don’t cover you if your own car is scraped up or rendered useless in a crash. So, be sure to assess the value of your ride and how you use it before opting exclusively for third-party insurance.
Different types of third party car insurance
There are three tiers of third party car insurance in Australia that cover you for different circumstances while driving: compulsory third party (CTP), third party property damage and third party fire and theft. Let’s explore each:
Compulsory third party car insurance (CTP)
It’s mandatory to take out CTP in Australia. While its name differs between states—sometimes it’s called a ‘green slip’ or ‘motor injury insurance’—and precise policy details vary, it broadly, speaking, covers your liability, and anyone who drives your vehicle, for injuries caused to others in a motor vehicle accident. It also generally covers you for any personal injury claims arising from the accident. Continuing here
