Car owners: your legal obligations

11 Jun 2020

Make sure you’ve got the essentials covered before you hit the road

Cars give us the freedom to go where we want, when we want. Whether it’s your daily commute, weekend grocery shop or a once-in-a-lifetime road trip, you can’t beat the convenience of your own set of wheels.

With that convenience comes responsibility though, and as a car owner you need to meet two legal requirements: registration and Compulsory Third Party (CTP) insurance.

Registration

Registering your car is a must. State and territory road enforcement agencies’ cameras can detect unregistered vehicles, and if you commit an offence (such as speeding) your details can be checked against a database for valid registration. If your car is found to be unregistered you could face a hefty fine.

The rules vary across Australia, but your car may well have to pass an inspection to prove it’s roadworthy. You can find out about the regulations in your state or territory on the Australian Government website.

Compulsory Third Party (CTP) insurance

As the name suggests, CTP insurance is mandatory. It covers you, or anyone driving your car, if you cause an accident in which someone else is injured. CTP covers the injured person’s treatment and rehabilitation costs, which could be substantial.

CTP works differently across the country – in most states you get it automatically when you register your car – but if you live in New South Wales, Queensland or South Australia you can choose your CTP provider.

In New South Wales, CTP is often called a ‘Green Slip’. You get it before you register your car. In Queensland and South Australia you nominate a CTP provider when you pay for your rego.

It’s important to know that CTP is the bare minimum when it comes to motor insurance. It doesn’t cover damage to other people’s cars or property, or your car. For that you’ll need car insurance.

Car insurance

Third party car insurance covers the cost of damage to other people’s cars and property, but not your own.

Comprehensive car insurance covers accidental damage to your car and also the damage the use of your car causes to other people’s vehicles or property. Many comprehensive policies offer additional benefits and the chance to tailor your policy with optional covers to suit your needs, so it’s worth taking time to ensure you’re getting the most out of your policy.

If you’d like to talk through your options we’re here to help. Call us on 133 723.

This advice is general in nature and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. To decide if QBE’s products are right for you, please ensure you obtain and consider the Policy Wording or Product Disclosure Statements and Target Market Determinations, available online at QBE.com/au. Insurance issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545).