CTP insurance and comprehensive car insurance: What's the difference?

Car insurance is an important investment that could save you thousands of dollars.

That's why it's important to understand the different types of insurance available. Knowing the difference between Compulsory Third Party (CTP)/Motor Accident Injuries (MAI) insurance and comprehensive car insurance is a good starting point.

What is CTP Insurance?

CTP insurance covers an at-fault driver’s liability for costs related to a third party's injuries after an accident. These costs can include things like medical bills and lost income. It also covers an at-fault driver’s liability to pay compensation to people injured or killed in a motor vehicle accident.

However, CTP insurance doesn’t cover any costs related to damaged vehicles or property.

In Australia, you’re required by law to have CTP/MAI insurance. However, the way you get it depends on where you live.

• In New South Wales – where CTP is better known as ‘Green Slip’ — you must buy CTP insurance before you can register your car.
• In South Australia and Queensland you can choose a CTP insurer when you register your car or renew your registration.
• In the ACT, you can choose a MAI insurer when you register your car or renew your registration.
• In Victoria, Western Australia, Tasmania and the Northern Territory, CTP insurance is included in the price of your vehicle registration.

Buy or renew your NSW green slip

What is comprehensive car insurance?

Unlike CTP insurance, comprehensive car insurance provides cover for accidental loss or damage to your car, as well as damage to other people’s cars and property.

With AAMI Comprehensive Car Insurance, your car will also have cover for:

• Loss or damage caused by weather events – such as storms, hail, flooding and fire (including bushfire)
• hire car after theft and not-at-fault incidents, with an optional hire car after at-fault incidents cover for an extra premium, and
• after claim expenses – such as accidental loss or damage to your personal property in the car at the time of an incident covered by your policy.

Limits and exclusions apply, so please read the PDS for more details.

Get a Comprehensive Car Insurance quote

Key differences between CTP insurance and comprehensive car insurance

• By law, every registered vehicle in Australia has to be covered by CTP/MAI insurance, whereas comprehensive car insurance is optional.
• CTP insurance only covers liability for personal injuries caused by a motor vehicle accident involving your vehicle.
• CTP insurance will not cover costs associated with any property damage you may cause.
• Comprehensive car insurance generally provides cover for accidental loss or damage, and liability to pay compensation for loss or damage to other people’s car or property.

Customising your car insurance coverage

Consider whether you'd like to add any optional covers for an additional premium when taking out an AAMI Comprehensive Car Insurance policy – like windscreen and window glass cover for one excess-free repair or replacement when the only damage is to your windscreen or window glass.

You could also consider our optional AAMI Roadside Assist cover for emergency 24-hour roadside assistance Australia-wide or cover for a hire car after an event for unlimited days. Limits and conditions apply. Read the full T&Cs for more details.

You can easily check the effect of optional covers on your AAMI Comprehensive Car Insurance premium when you get a quote online. Simply add or remove optional extras and see how your quote varies.

Explore Car Insurance Now

Read more:

• What to do when someone hits your parked car?
• Be aware of hire car scams after a not-at-fault car accident
• How to drive a manual car: a guide for beginners

Insurance is issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Please read the relevant Product Disclosure Statement before buying this insurance. Target Market Determination also available. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.