What Is CTP Car Insurance

What is CTP car insurance. Good question. CTP is a form of protection called compulsory third party that was introduced into law in Australia in the 1930′s. If you were a driver in this country during this time and you caused an accident that injured someone else, and you were in financial distress to begin with, you were one of the reasons that this type of auto coverage was invented.

At this time in Australia’s history, coverage was not a requirement, it was an option. This was a poor idea at the time because it left many without the funds to take care of those they hurt in an auto accident. This left the victims also with a financial hardship.

CTP was invented to cover these people from financial problems. This is solely a motor vehicle coverage to protect you from the pain and financial hardships caused by injuries due to accidents.

A third party is anyone that may be a passenger in your vehicle. It also refers to any other drivers in other vehicles and any passengers they may have in their cars as well. A third party can also include anyone walking down the street, a pedestrian, and will also include motor cycle riders.

CTP coverage belongs to your own car, or vehicle. This is not an insurance that belongs to any one person, just the vehicle itself. What this does mean is simple. For example, if you lend your car out to someone else and they are the cause of an accident that results in bodily injury to someone else, the CTP coverage will be in force. This means they are covered by the CTP policy. And, an added benefit to this coverage is that if you ever choose to sell your car to anyone else, that CTP policy is transferred to this new owner of the car.

A great requirement for vehicles. It covers accidents resulting in injury to a third party and is transferable.

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