Third party property damage insurance is not compulsory in Australia. While it’s optional, it can be valuable as it helps protect you from potentially significant costs if you damage someone else’s car or property.

Compulsory Third Party (CTP) Insurance (also called Green Slip in NSW and Motor Accident Injuries (MAI) policy in ACT) is required by law. CTP covers injuries or death caused to other people in a motor vehicle accident, but it doesn’t cover damage to vehicles or property.