To be a ‘responsible driver’, cautious driving with all rules and speed limits followed, alone does not suffice. It also requires proper steps to secure other’s safety on the road. However confident you are about your skills as a seasoned driver, all it needs for an accident to occur is a minor miss.
As a mandatory requirement, all motor vehicles (cars) that require registration have to have a bare minimum cover that protects other’s interest in an event of accident. This cover is referred to as third party insurance, and it covers any damage caused to the third party vehicle or a body injury to the driver of the third party vehicle, in case you get involved in an accident. It does not provide any cover for the expenses of your own car repairs or your medical bills.
In Australia, the state in which the car owner resides has to obtain compulsory third party insurance. In the state of NSW, it is referred to as ctp green slip. It is required for the registration of the vehicle, and protects the at-fault driver against compensation or liability claims of the third party (the other vehicle and driver) involved in the accident.
For the insured, it covers:
- An injury caused by your driving to other driver
- Injuries to other people of the road – pedestrians, cyclists, other drivers, passengers, motor riders, and pillion passengers
It does not cover:
- Damages caused to your vehicle as a result of an accident as your fault
- Damages caused to other vehicles or property as a result of your faulty driving
Before making a decision to purchase a new car, it is essential for you to acknowledge yourself of the rules and requirements for compulsory third party insurance and the registrations based on your residential state.