Understanding your NSW CTP Insurance premium
Find out what affects the price of your CTP Green Slip and why your premium may be different when you renew.
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What is CTP Insurance?
Compulsory Third Party (CTP) Insurance – known as a CTP Green Slip in NSW – helps protect drivers from liability if they cause injury or death to others in a motor vehicle accident. This policy covers the necessary medical treatment and rehabilitation expenses, and a percentage of pre-injury income if those injured need time off work.
CTP Insurance is required by law to register your vehicle. All NSW CTP Green Slip premium bands are regulated and reviewed by the State Insurance Regulatory Authority (SIRA). This means we must submit our prices to SIRA for approval.
SIRA’s regulation ensures premiums are:
- fair and reasonable for motorists,
- sufficient to cover expected claim costs, and
- supportive of the scheme’s long term financial sustainability.
To register your vehicle, you’ll need a CTP Green Slip. Your total premium also includes GST and the Fund Levy.
How is CTP calculated?
Your CTP Green Slip price depends on several factors, including but not limited to:
- vehicle details – such as the make, model, vehicle age, and insurance history of the vehicle,
- driver history – including the youngest driver’s age, driving record, previous claims and any demerit points,
- region – the area in which the vehicle is primarily garaged and used,
- the length of cover (6 or 12 months), and
- if the vehicle is registered for private or business use.
As these factors change, your premium may also change.
In setting premiums, insurers also charge sufficient premiums to cover the costs of potential claims and operational costs.
What is a CTP Insurance premium and why does it change?
An insurance premium is the amount you pay for your policy. It’s calculated using a range of factors, and it can be different for each person. The list includes:
- Vehicle details, including the make, model, age and insurance history of the vehicle.
- Driver history, including the youngest driver’s age, drivers’ driving record, previous claims and demerit points.
- The area in which the vehicle is garaged and used most of the time.
- The length of cover (6 or 12 months).
- If the vehicle is registered for private or business use.
This isn’t a full list, and the factors we use may change over time. Each factor can affect your premium differently, which is why your premium might change when you renew your policy.
Other factors that can influence your premium
On top of the reasons above, some additional factors include, but aren’t limited to:
- the cost of claims (for example, medical and health care services) and what we expect to pay in the future
- our business costs
- conditions in the insurance market, and
- inclusion of GST and the Fund Levy that make up your total premium.
What is the Fund Levy?
The amount you pay for your CTP Green Slip includes your Premium, GST and Fund Levy.
The Fund Levy covers initial ambulance and hospital fees, along with longer term treatment and care for people with severe injuries resulting from motor vehicle crashes.
To learn more about CTP Green Slip premiums visit the SIRA website.
Take control - Things to check
Licence Details
Check if any driver has a provisional licence and confirm there are no licence suspensions or cancellations.
Driving Record
Review demerit points and any at-fault accidents on the record.
Driver Information & Usage
Confirm the youngest driver’s date of birth and the total kilometers driven.
FAQS
People also ask
If you have a light vehicle (vehicles with GVM less than 4.5 tonnes), you can choose between a 6 month or 12 month term.
As long as you pay for both the CTP Insurance and registration within 21 days of the due date, you can choose a 6 month term for the renewal of your CTP.
If it’s been more than 21 days since your registration was due, you can only choose the 12 month period, unless there are ‘extenuating circumstances’ for us to accept the late payment.
You can manage your NSW CTP Green Slip online. You can register or log into GIO My Account to pay or edit your policy details including renewal term, driver details and driving history.
Several factors can affect the price of your policy even if your details haven’t changed, including but not limited to the age of your car, the youngest listed driver and the costs of potential future claims as well as an insurer’s operational costs.
Even with similar driving records and addresses, premiums can vary because different vehicles have different risk ratings.
*CTP Claims data from State Insurance Regulatory Authority report.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Registered Office, Level 23, 80 Ann Street, Brisbane QLD 4000. In accessing the GIO site you agree to the Online terms and Conditions.
