This article explores the two sides of the coin when it comes to car insurance, your mandatory CTP and additional non-mandatory insurance.

CTP, or ‘green slip’ as it is often termed is an insurance you are required to have if your car is registered in Australia. In each state and territory, it is a legal necessity. CTP insurance protects you from financial burden should you cause a motor vehicle accident that results in injury to a third party, including passengers in your car, other drivers and their passengers, cyclists and pedestrians.

Each state and territory has its own rules and laws as far as CTP insurance is concerned. As a general rule, the amount you will be charged to CTP varies upon the vehicle type, the age and performance of the vehicle, driving history and driver history.

In the majority of the states and territories, CTP is covered by the cost of registration for a car. However, drivers can pick their provider when registering a vehicle in New South Wales and Queensland.

While CTP in Australia is obligatory, you are not legally required to take up extra car insurance coverage. However, if you are involved in an accident – even if you are not at fault – not having supplementary car insurance can make you financially vulnerable.

So, let’s explore the optional types of car insurance you can add to your CTP.

Third Party Car Insurance is worthy of consideration if you have a car that is worth little. It safeguards you from the financial burden of a car accident that results in damage to a third party’s car or property, not your own.

Third Party Fire and Theft car insurance goes even further than this, covering the above as well as damage caused to your car by fire or theft. However, like third party property insurance it doesn’t cover damage caused to your car in any other type of accident.

For fuller insurance cover than these two, you should consider Comprehensive Car Insurance. This covers all of the above plus accidental damage to you car. Which can save you thousands in having it repaired or even replaced at value. If you can afford it, this is the best car insurance for safeguarding your savings, along with your CTP.

Let’s look at the reasons why you should consider taking out insurance on top of your CTP:

  1. You may claim that you are a safe driver. Even if that’s true and you’re never making a claim, can you say other motorists are the same? The reality is, we can’t foresee what other drivers are going to do and even if you didn’t cause the accident you could get stuck with a huge repair cost.

  1. If you feel that your car’s low value means you don’t need any other type of car insurance, think again. Even though your automobile is as valuable as scrap metal, what if you accidentally ran into the bright new Mercedes in the parking lot? With even the lowest cost car insurance – third party property – you are insured for the damage you’ve caused here, so you won’t get left with the hefty repair price.

  1. If you ever feel that taking car insurance is expensive, try researching the market for cheap car insurance that still gives you the cover you need. Even a small amount of damage may cost you thousands of dollars in repairs and leave you detained for days, weeks, months or even longer without a car. The premium paid will be worth it if you ever have to make a claim of any decent size.

Now, decide whether to take a Comprehensive or Third Party Cover in Australia.