In Australia, it's illegal to drive without compulsory third party (CTP) insurance. Because of this, if you're a car owner, it’s essential to understand your obligations when it comes to insuring your vehicle on the road.
Savvy’s informative guide covers what types of insurance are available in Australia, the potential implications of driving uninsured, whether you can drive an unregistered vehicle and more, so learn more with us today.
While certain types of car insurance are optional in Australia, all vehicles must have CTP insurance. Sometimes referred to as a Green Slip, this type of insurance provides coverage for personal injury or death caused by the driver of the insured vehicle to other road users and is a legal requirement to obtain vehicle registration in Australia. Depending on where you live, this may be included in your registration costs automatically.
CTP insurance is limited in scope, covering only your liability for injury or death to other people in a car accident. If you require more extensive coverage, there are several other types of car insurance offering different levels of cover that you can choose to purchase:
CTP insurance is a legal requirement for all registered cars in Australia, and it’s illegal to drive without it. There may be very limited circumstances temporarily exempting you from needing car insurance, depending on the state or territory you are in – for example, in South Australia, you may drive an uninsured and unregistered vehicle to fight a fire that poses a threat to life and property. However, in all other situations, you must have CTP insurance.
In most circumstances, you cannot legally drive an unregistered car. If the police catch you driving an unregistered vehicle, they can fine you or seize your vehicle. There are limited exceptions, such as driving a vehicle to get it registered.
In cases where you may need to drive an unregistered vehicle for repairs, for an inspection, to relocate the car or to attend a car rally, you may need to apply for an unregistered vehicle permit (UVP) to drive on public roads.
It is important to note that CTP insurance usually isn’t valid until your car is registered.
Driving without car insurance can have significant risks and consequences, including:
If you’re in an accident with another car and you are responsible for the accident, you are liable to cover all expenses. If you don’t have insurance, you will be personally responsible for covering all costs, and could also face penalties such as fines. If you’re uninsured but not at fault, the other driver will be responsible for paying for your costs, but you’ll need to seek out this compensation yourself without the backing of an insurance company.
However, if the other driver in the incident is uninsured, you’ll have to ask them for payment to cover the costs of the accident or potentially go to court or an accident tribunal if this is unsuccessful.
It’s important to note that CTP insurance does not cover damage to third-party property or any of the vehicles involved in an accident, so many drivers take out additional cover such as TPPD or comprehensive car insurance.
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