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While Compulsory Third Party (CTP) insurance is mandatory for all drivers in Australia, the rules for taking out the cover differs between states and territories.
In NSW, drivers need to have CTP insurance in place, or a ‘green slip’ as it’s known, before registering their vehicle. The cover provides the most basic form of protection to drivers on Australia’s roads. We explain exactly what a green slip is, who provides it, how much it costs and more below.
Related: Best CTP Insurance for Australians
What Is a Green Slip?
CTP, or green slip, is the most basic form of insurance for vehicles in Australia, covering you, or another driver of your vehicle, causing someone injury or death in a motor accident. The other party could be another driver or rider of a vehicle, a passenger or pedestrian.
While such an accident can be devastating to all involved, it can also carry a heavy financial burden to the driver who is liable. They would be responsible for paying compensation to the injured individual, or their family, in the case of someone dying. CTP covers the individual’s treatment and care, which in extreme cases, can be lifelong. It also covers loss of income, if they are an earner, and any damages they are entitled to claim.
A green slip does not cover damage done to property, your car or someone else’s. To cover damage, you can choose to take out an additional form of cover. The most basic type of optional car insurance is third party property damage, covering damage you’ve caused to someone else’s vehicle or property, if you’re liable for it. The next level up is third party, fire and theft, which provides the same cover, but also extends to damage to your own car, caused by fire or theft. The third and final form of optional insurance is comprehensive. This is typically the most expensive, but can offer the most peace of mind, as it provides the widest range of benefits, including car hire while your vehicle is being repaired, or a replacement for your car, if it’s written off following an incident
Those who need insurance for a personal vehicle, can take out CTP cover for 12 months at a time, or for six months, but only if they ensure they renew their policy within 21 days after the rego due date. To find out more about how CTP insurance works across Australia, you can read our dedicated guide.
Does a Green Slip Cover the At-Fault Driver?
In NSW, as well as compensating another party, a green slip entitles you to 26 or 52-weeks’ worth of benefits, if you are at fault, or mostly at fault, and have not committed a serious driving offence. The NSW government site says you will receive:
- a percentage of your pre-injury weekly income if you need time off work
- reasonable and necessary treatment and rehabilitation expenses
- commercial attendant care if you need help around the home while you recover.
The length of time you receive benefits depends on when the accident took place. Drivers who are not at fault, and sustain more serious injuries, may be able to claim benefits beyond the 26 or 52-week limits, and receive lifetime care and support. For help with claiming and more you can contact CTP Assist on 1300 656 919 or email ctpassist@sira.nsw.gov.au.
How Does CTP Work In NSW?
If you live in NSW, you’re in one of four states and territories—NSW, QLD, SA, and the ACT—in Australia where drivers can choose a private CTP insurer. In WA, TAS, NT and VIC, the cover is provided by the relevant state government.
There are six official, SIRA-approved green slip providers in NSW: Youi, QBE, NRMA, GIO, AAMI and Allianz. While you can purchase your green slip directly from a provider, or at a post office, you’ll want to compare offerings and prices from each before making a decision. Although they all offer the same cover level, they may provide supplementary benefits, and each differ on how much they charge for cover, keeping the green slip market competitive, and providing the opportunity for drivers to potentially find a deal.
According to greenslips.com.au only one insurer, NRMA Insurance, currently provides an additional feature, which is At-Fault Driver Cover. This is meant to offer more benefits for the at-fault driver in an accident, for longer than the CTP scheme. Providers can also offer discounts on other forms of cover they provide, if you take out CTP insurance with them.
Where Can I Compare Quotes For CTP?
The easiest way to compare providers is to head to the website of NSW’s State Insurance Regulatory Authority (SIRA), the regulator of green slip providers. You can also renew your green slip there. On the site, you can view the performance of each insurer across metrics such as the number of complaints lodged against them, the percentage of claims they’ve accepted for statutory benefits, and the percentage of people injured to receive treatment and care within four weeks of a claim.
You are also able to run quotes to compare the offerings and prices of each insurer, using the dedicated online tool. The quickest way to get quotes, is to first enter your driver’s licence or billing number. Once you’ve submitted this information, viewed the quotes and clicked on the insurer of your choice, you will then be taken to its website for your quote to be fine tuned, and as you initially provided your driver licence or billing Number, the rest of the information the insurer requires will be auto-filled for you.
Alternatively, you can enter your registration or vehicle identification number (VIN). If you don’t have this information to hand, you’ll be required to provide more details about yourself and your car, including your name, and date of birth, your vehicle type and any accidents involving any drivers of the car within the last five years, where they were at fault.
All in all, the process for taking out cover should take a matter of minutes. An e-green slip is then sent to Transport for NSW (TfNSW) as notification of your payment.
How Is the Cost Of a Green Slip Calculated In NSW?
According to SIRA, an insurer estimates how much it thinks it needs to collect to cover the cost of future claims, business costs and reasonable profit, to calculate how much a driver should pay for a green slip. It does this by considering variables such as the:
- age of the car owner or youngest driver
- age of the vehicle
It adds goods and services tax (GST) and includes a fund levy to cover ambulance and initial hospital care for individuals who have been injured in motor accidents, lifetime care for those who have sustained a severe injury, treatment and care for those who need it five years after an accident, and more.
How Much Does Green Slip Cost?
As the cost of green slip is based on information about an individual driver and their car, it’s best to run quotes on the SIRA website, to find out how much you could be required to pay.
To get an idea of how much it could cost we used the tool and were provided with the following quotes:
- Youi: $432
- QBE: $433.24
- NRMA: $436.28
- GIO: $479.24
- AAMI: $480.72
- Allianz: $481
We populated the tool with the following information:
- Registration due date: 26.3.24
- Vehicle type: Motor car
- Year of manufacture, make and model: 2024, other, other
- Vehicle shape: 4-wheel drive passenger (PVF)
- Postcode where vehicle is garaged: 1001
- No. of average km travelled each year: Up to 15,000
- Registered to: Individual
- Days used per week to commute: five
- Entitlement to claim ITC on this green slip: None
- Other motor insurance for the vehicle: None
- Other motor insurance for another vehicle: None
- D.O.B: 1.1.1982
- Holder of valid NSW licence: Yes
- Licence of least experienced driver: Open licence (Australian)
- Years least experienced driver has held licence: 6 or more
- D.O.B of youngest driver: Same as above
- Gender: Male
- Accidents by any drivers of car in last 5 years where they were at fault: None
- Licence suspensions, cancellations, disqualifications or restrictions in last 3 years: None
- Convictions or fines imposed for alcohol or drug related driving in last 3 years: None
- Drivers of vehicle with provisional licence: None
- Number of demerits owner/drivers have accrued on their licence: 0
- NRMA membership e.g. for insurance products or roadside assistance? No
What Happens If I Drive Without a Green Slip in NSW?
Although a green slip is a prerequisite when first registering your vehicle in NSW, there are occasions where some may find themselves driving without it. This includes driving your parent’s car, or a company vehicle, and not realising the rego is overdue.
In any case, a CTP policy needs to be renewed within 21 days after the rego due date, otherwise driving the vehicle is illegal, warranting a fine of $1,200. In the worst-case scenario, if you injure or kill someone while driving without rego and a green slip in place, you could be sued for a considerable sum.
If you do find yourself in an unfortunate situation, with an invalid green slip, it’s still worth contacting your insurer, to find out if you can make a claim. They will likely assess such situations on a case-by-case basis.
Frequently Asked Questions (FAQs)
When should I take out CTP insurance in NSW?
Australians in NSW should purchase green slip before registering their vehicle for the first time. It will then need renewing within 21 days after the rego renewal date.
How do I know whether I am covered?
You can check the details of your CTP insurance policy and registration on the relevant paperwork. Alternatively, you can phone your insurer with your questions, and visit the Service NSW website for a free rego check.
How long does it take for TfNSW to receive my green slip?
For those who pay for their green slip online or by phone, an e-green slip will be sent to TfNSW within an hour of payment. Those who pay at a post office, can expect it to take two business days.
