What Is Compulsory Third-Party Insurance?

Suppose you are a new car owner or have just passed your driving test and are looking to buy a vehicle. In that case, you must educate yourself about insurance coverage in Western Australia to ensure you are protected in case of a car accident. Compulsory Third Party (CTP) insurance is, as the name suggests, compulsory in Australia. Your policy is printed on the back of your vehicle registration. 

Let’s dig deeper into how CTP insurance works here in WA.

Do you need Compulsory Third-Party insurance in WA?

As you can guess by the name, CTP insurance is compulsory in WA. The Insurance Commission of Western Australia provides CTP insurance as part of your motor injury insurance. When you register your car with the Department of Transport, you pay for your CTP. Vehicle registration is also compulsory to drive on public roads in WA.

In WA, what does Compulsory Third Party insurance cover?

If you negligently hurt or fatally injure someone in a car or motor vehicle accident, CTP insurance covers the cost of claims made against you.

According to the Insurance Commission, this can include:

  • compensation (for pain and suffering)
  • loss of wages (past and future)
  • claims management expenses (the cost of defending the claim)
  • care and support (medical treatment and rehabilitation).

In Western Australia, motor injury insurance also includes Catastrophic Injuries Support cover. If you are catastrophically injured in a motor vehicle accident CIS covers the cost of lifetime treatment, care, and support.

However, CTP insurance doesn’t cover damages caused to vehicles or property from a vehicle crash. Which means that if you’re responsible for an accident, you might end up having to pay thousands and thousands of dollars for the damage to other cars or property. Consider investing in a comprehensive car insurance policy to protect you from this liability and ensure vehicle or property damage is covered.

When does CTP start?

CTP commences when you pay vehicle registration and involves two components: 

  1. The Compulsory Third Party insurance scheme: covers costs involved in personal injury or death caused to others by any driver of a licensed vehicle found to be at fault.
  2. The Catastrophic Injury Support insurance scheme: covers costs of the necessary and reasonable treatment, care, and support of anyone catastrophically hurt in a vehicle crash, regardless of fault.

These two schemes have provided cover for injury and death directly arising from motor vehicle accidents since 2016.

Other Types of vehicle insurance

  • Third-party car insurance: covers you most costs (damage, legal costs, repairs) to other motor vehicles or property in an accident.
  • Third-party with fire and theft: covers any vehicular damage caused by fire or theft.
  • Comprehensive car insurance: usually covers the repair and replacement of your car due to fire, theft, malicious damage, accidental damage, and weather-related damage, along with the repair and replacement of any other vehicles or property damaged by your car in an accident.

How much is CTP insurance in WA?

Typically, motor injury insurance costs relate to your vehicle’s type and age. CTP premiums are reviewed each year and amended to match variations. For example, for 2021/2022, motor injury insurance premiums for motor cars are $457.55 for 12 months. This cost includes GST and insurance duty. 

Driving an unlicensed vehicle on the road could result in your receiving a hefty fine, so don’t take the risk. Also, keep in mind that Third-Party Insurance doesn’t cover unlicensed cars, so if you do drive an unlicensed car on the road and then have a crash, you’ll be liable for any damage caused to property or person.

Renew your vehicle registration either every three, six, or twelve months. Typically, you’ll receive a reminder notice by post, but this is just a courtesy. It’s your responsibility to ensure your vehicle’s licence is current.

The Department of Transport’s website has more details about how to renew your vehicle licence.

How to make a CTP insurance claim in WA?

Do you have a car accident injury? You can claim if you were not at fault or only partly at fault, whether you are a driver, passenger, pedestrian, or cyclist. If a close relative was fatally injured in the crash, you could also make what is known as a dependency claim.

If you are catastrophically injured and unable to establish the fault of another driver, you can claim Catastrophic Injuries Support.

Finding a car accident lawyer in Perth

The Soul Legal team has extensive experience assisting injured victims of motor vehicle accidents or car accidents in Perth. We understand the legalities surrounding compensation for motor vehicle accidents and will be upfront and honest about the likelihood of your claim’s success. Don’t suffer alone if you have suffered injury, whiplash, or expense due to a motor vehicle accident.

Choose Soul Legal – experienced car accident lawyers

Soul Legal are experienced car accident lawyers who can help you with your motor vehicle accident claim. We’ll take the stress, worry, and confusion out of managing your motor vehicle accident personal injury claims or car accident compensation claims in Perth. Ask us about our NO WIN – NO FEE guarantee. We offer this in Motor Vehicle Claims, Worker’s Compensation ClaimsCriminal Injuries Compensation ClaimsPublic Liability, and Product Liability Claims.

Contact one of our Perth motor injury lawyers at Soul Legal today for your FREE no-obligation claims assessment.

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