The distinction between Compulsory Third Party Insurance (“CTP Insurance”) and Comprehensive Car Insurance is one which many people unfortunately do not know. This article aims to briefly explain the difference between the two types of insurances.
As the name suggests, CTP Insurance is, well, compulsory. If you drive a vehicle on Queensland roads, that vehicle must be registered with the Queensland State Government. Part of the registration fee that you pay to the Queensland State Government goes towards CTP Insurance. Therefore, there is no registered vehicle in Queensland that does not have CTP Insurance.
So what does CTP Insurance cover you for? Put simply, CTP Insurance only covers drivers of registered vehicles from liability for the death or injury that they cause to any third party as a result of a motor vehicle accident. For example, if you were unfortunate enough to collide with a pedestrian or another vehicle, causing injury to the person whom you collided with, CTP Insurance will cover you for any claims that they make for the personal injury which you caused them.
What people often do not understand is that CTP Insurance does not cover any injuries sustained to you as it only covers “Third Parties”. Further, CTP Insurance does not cover any property damage that you may cause to a vehicle. This is where Comprehensive Car Insurance comes in.
Comprehensive Car Insurance only covers damage to your vehicle, loss or theft of your vehicle and damage that you cause to other people’s vehicles. Obviously, accidents happen. You do not intend for accidents to happen and therefore it is extremely important to take out Comprehensive Car Insurance.
Please contact us for more information.
By Tina Ibraheem.