When it comes to insurance on your vehicle, there can be a bit of confusion about what insurances you require and why they are important.
Crest Insurance’s Client Manager Christie Purtle delves into the two types of car insurance – CTP Insurance and Car Insurance, explaining the difference between the two and why you need both.
CTP Insurance – what is it?
CTP Insurance is short for Compulsory Third Party Insurance (or a Green Slip as it sometimes known), is something that all car owners need – it’s a legal requirement. CTP protects people injured by your car if you cause an accident and, provided your car is registered, you’ll already have it.
In the event that a claim is made for personal injury a CTP insurance will indemnify the driver of the vehicle and the owner of a vehicle from any legal liability (subject to the terms of the policy selected). This means that if you are responsible for an accident which injures another driver, passengers, a cyclist, motorcyclist, or a pedestrian, you should be covered for any personal injury claims.
What CTP Insurance doesn’t cover is the cost of damage to anyone else’s car or property, or your car. For that you’ll need Car Insurance.
Available as either Comprehensive cover or Third-Party Property Damage, Car Insurance offers protection to cover your car for accidental damage, fire and theft and/or damage your car may cause to other people’s cars and property.
Comprehensive insurance offers the greatest peace of mind to vehicle owners and is the recommended form of Car Insurance.
Unlike CTP Insurance, car insurance is not compulsory, however it is very highly recommended as it can protect you, your car and your financial interests in the event of a claim.
Why do you need both covers?
Simply, CTP and Car insurance offer different scopes of cover and will exclude the other cover from its policy – CTP cover injury and exclude property damage, and, Car Insurance covers property damage and excludes injury.
Because of its mandatory requirement and name of insurance, CTP Insurance often gets confused and perceived as a broad Liability cover and that will cover all damage and injury caused to another person’s (the Third Party) property that you have caused.
How can Crest Insurance help you
The Gold Coast Insurance Broker team at Crest Insurance are here to take the hard work out of researching and acquiring insurance.
Discover today how we can help you access the best insurance products tailored to your life and/or business needs.
Contact Crest Insurance today for professional, generalist insurance advice and find the best product for you.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.