NT motorists are potentially leaving themselves open to big costs after a crash by only having CTP insurance. Here’s why it might leave them at risk on the road.
You’re on the road. It’s wet and slippery, and you’re driving behind a luxury car like an Audi or BMW.
Suddenly, the driver of the car in front slams on the brakes. The car in front is slightly too close, and while you try to brake in time, the wet road makes it harder to stop. You hear a loud bang and your bonnet and their boot crumple on impact.
You’ve had a rear-end crash. Thankfully nobody is hurt, but the two cars need to be towed and further investigation finds they’re both written off.
Unfortunately, you’re found to be at fault for the crash and the bad news doesn’t stop there.
You only have CTP (Compulsory Third Party) insurance – the one that comes with your registration. In the NT, it’s also known as the Motor Accidents Compensation (MAC) Scheme.
While this type of insurance may protect you against the financial impact of causing injury or death to other road users, it generally doesn’t cover any damage to your car or the other person’s vehicle or property.
All car owners in the Territory are required to pay for CTP insurance when registering their vehicle. However, there are some Territorians who only have the CTP coverage and do not have any additional insurance beyond that. Why? There are plenty of reasons, but it could come down to cost or a lack of understanding what’s covered.
If you do have a crash and are found to be at fault, you may need to pay for the person’s car to be replaced and be left with a huge debt. So, what are some other insurance options insurers may provide?
Third Party Cover
If you’re found to be at fault, third-party cover may insure you against accidental loss or damage you cause to another car or property in a crash. However, you’ll generally still need to pay for repairs to your vehicle.
Third Party, Fire and Theft Cover
This type of car insurance may cover you if your car has caused damage to other vehicles and property. It may also cover your vehicle if there’s damage caused by fire, or your car is stolen. However, it may still not cover the expense of repairing your car if you cause a crash.
Comprehensive
This is the top level of car insurance coverage and may include cover for accidental damage to your vehicle, fire and theft, and damage to other people’s cars and property if you’re at fault. Comprehensive car insurance may also cover you if your car is damaged by some weather events including storms or hail.
Important information:
This insurance product is distributed by Automobile Association of Northern Territory Inc ABN 13 431 478 529, an authorised representative of the issuer Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722, AFSL 227681. Any advice provided is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase a product, you should consider your personal circumstances and the relevant the Product Disclosure Statement and Target Market Determinations from https://www.aant.com.au
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