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General information only: Tax, registration, insurance and credit rules can change. Confirm the current position with the linked government authority and your finance or insurance contract before acting.
Quick answer
Compulsory third party insurance—or the local equivalent—is personal injury cover connected with vehicle registration. It does not insure the vehicle itself and does not pay for ordinary damage to another person’s car or property.
Why this matters when financing a car
A valid registration and CTP position may be part of completing a purchase, but CTP is not the comprehensive insurance commonly required before a secured financier releases funds. Confusing the two can delay settlement or leave a buyer exposed to vehicle-damage costs.
What CTP covers and what it does not
CTP schemes fund or insure eligible personal-injury liabilities and benefits arising from motor accidents. The precise entitlement, fault rules and benefits depend on the jurisdiction.
CTP does not ordinarily cover repair or replacement of your car, damage to another vehicle, theft, fire or general property damage. Comprehensive insurance and third-party property insurance are separate products.
Why the purchase process differs by state
Every jurisdiction requires motor injury cover for registered vehicles, but the way it is bought differs. Some schemes are bundled into registration through a government insurer or statutory charge. In others, the owner selects an approved insurer as part of registration or obtains a policy connected with registration.
This changes what a buyer must do before registering or transferring a vehicle. Use the relevant scheme authority, not an interstate checklist.
CTP, third-party property and comprehensive insurance
The similar names cause expensive mistakes. CTP is about people injured in crashes. Third-party property cover deals with damage you cause to other people’s property, subject to the policy. Comprehensive insurance can also cover accidental damage to your own insured vehicle, plus other insured events and liabilities, subject to its terms.
Read the product disclosure statement and exclusions. “Third party” without the word “property” can refer to a different legal risk from third-party property insurance.
What a financed buyer should do before settlement
Ask the financier exactly what insurance evidence is required and when cover must begin. The policy should identify the correct vehicle and VIN, insured amount, registered owner and any financier interest required by the lender.
- Confirm how CTP or the local scheme is attached to registration
- Arrange comprehensive cover if required by the finance contract
- Match the VIN and vehicle description across the invoice and policy
- Confirm the cover start time is no later than possession or settlement
- Do not treat a CTP receipt as proof of comprehensive insurance
State and territory guide
Use the official source for the jurisdiction where the vehicle will be registered. The summaries below explain the pathway; they do not replace the current calculator, scheme rules or eligibility test.
ACT
Motor Accident Injuries insurance is selected as part of registration and covers people injured in motor accidents under the ACT scheme.
ACT Motor Accident Injuries Commission — MAI policy →NSW
A CTP Green Slip is required for registration and is supplied by licensed insurers under the NSW scheme.
SIRA — CTP insurance →Northern Territory
The motor accident compensation scheme is funded through a contribution paid with NT vehicle registration.
NT Government — registration fees and MAC insurance →Queensland
CTP is compulsory, an insurer is nominated for registration and the premium forms part of the registration cost.
Motor Accident Insurance Commission — CTP scheme →South Australia
CTP is paid with registration and owners can choose from approved insurers at renewal under a common policy.
SA CTP Insurance Regulator — about CTP →Tasmania
The MAIB scheme is funded through premiums collected with vehicle registration and provides statutory motor-accident cover.
Motor Accidents Insurance Board →Victoria
The TAC charge is collected with registration and funds Victoria’s transport accident scheme.
Transport Accident Commission — transport accident charge →Western Australia
Motor injury insurance, including CTP and catastrophic injury support, is paid with the vehicle licence.
Insurance Commission of WA — insurance policy →Why CTP does not satisfy a secured lender
A buyer sends the financier proof that registration includes CTP and assumes the insurance condition is complete.
- The CTP evidence confirms the relevant motor injury cover connected with registration.
- It does not show that accidental damage, theft or loss of the financed vehicle is insured.
- The buyer arranges comprehensive cover identifying the vehicle and any financier interest required by the contract.
Result: Settlement can proceed only when the financier’s actual insurance condition is met. The two covers solve different risks and one does not replace the other.
Primary sources
Government and statutory sources checked on 8 August 2026:
- SIRA NSW — compulsory third party insurance
- ACT Motor Accident Injuries Commission — MAI policy
- SA CTP Insurance Regulator — about CTP
- Transport Accident Commission — transport accident charge
- Insurance Commission of WA — insurance policy
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