Have you ever wondered what your green slip covers and doesn’t cover? Do you know the difference between CTP insurance and comprehensive insurance? What your green slip covers is a good question you ask that greenslips.com.au can answer.
This is the second article in our re-issued 8-part series, How greenslip insurance works.
What your green slip covers
The coverage provided by every greenslip is mandated by law. This means each insurer provides exactly the same coverage with their greenslip.
Your greenslip covers:
- Compensation for people who are killed or injured in a road accident involving your vehicle
- Passengers, pedestrians, cyclists, motorcyclists, other drivers and, to a lesser extent, the driver at fault
- Compensation under the Lifetime Care and Support Scheme for people with catastrophic injuries in the accident
- Trailers under the greenslip of the towing vehicle
- Driving your vehicle throughout Australia.
Remember, your green slip covers people only.
What your greenslip does not cover
Your greenslip does not cover property at all, including:
- Damage to your vehicle or property
- Damage to other people’s vehicles or property
- Theft of your vehicle.
You need to buy comprehensive or third party property insurance to cover any property.
Does comprehensive insurance include a greenslip?
No, comprehensive insurance does not include a greenslip. While the word “comprehensive” implies total coverage, the purpose of comprehensive insurance is to cover all kinds of property. It does not include cover for people as this is the purpose of a green slip.
Does a greenslip include third party property insurance?
No, a greenslip does not include third party property insurance. Third party property insurance covers other people’s property. It does not include cover for your property and it does not include cover for people.
Third party property insurance is the minimum motor insurance for property and is usually less expensive. In fact, people typically choose this if their own vehicle is of low insurable value. This insurance protects them from the costs of damaging more valuable vehicles.
Many insurers offer comprehensive insurance and third party property insurance and some offer cover for fire and theft only. All green slip insurers offer comprehensive insurance and third party property insurance. This is a further cost on top of their green slip cover.
Compare types of motor insurance
| Covers | Does not cover | Features | |
| Green slip (CTP) | Protection against claims for compensation if you injure or kill someone in an accident | Damage to your car, other cars, property, or theft | Compulsory |
| Comprehensive | Damage to your car, including fire and theft, damage to other cars and property, optional extras |
Damage to your car if not roadworthy or licensed, or when driver is affected by alcohol or drugs Green slip (CTP) |
The broadest and most expensive cover for your car, other cars and property |
| Third party property only | Damage caused by your car to other cars and property plus cover for legal costs | Damage to your car or theft Green slip (CTP) | Protects against damage to other cars, usually chosen by driver with a low-value car |
| Fire and theft only | Limited cover for your car for damage or loss by fire or theft |
Damage to your car (other than fire or theft), other cars or property Green slip (CTP) |
Provides some protection for your car but less than comprehensive cover |
Last word
Your green slip covers people only, and does not cover damage to your vehicles or the vehicles of others. It is mandatory to register a vehicle. Comprehensive or third party property insurance covers property and you can choose whether or not to have this cover.
Compare green slip prices for every insurer here.
This is the second article in our re-issued 8-part series, How greenslip insurance works. Read the first article, What is a greenslip and why do I need one?
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