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What Is CTP Car Insurance For The Motorist

Author: Mike Stanzi  //  Category: Car Insurance

What is CTP car insurance. Good question. CTP is a form of protection called compulsory third party that was introduced into law in Australia in the 1930’s. If you were a driver in this country during this time and you caused an accident that injured someone else, and you were in financial distress to begin with, you were one of the reasons that this type of auto coverage was invented.

At this time in Australia’s history, coverage was not a requirement, it was an option. This was a poor idea at the time because it left many without the funds to take care of those they hurt in an auto accident. This left the victims also with a financial hardship.

Now, CTP coverage covers you for any claims that are made against you if you are the one who causes an accident that results in an injury to someone else. This is strictly for motor vehicle accidents. Bodily injuries that result from car accidents that are your fault need to be covered.

The term third party has a special meaning when it comes to the kind of coverage. A third party is a person who may be a passenger in the car that causes the accident, or it may be a person who is driving the car that was hit in the accident. Even more, it may a person who was a passenger in the car struck, a pedestrian, or even a motorcycle rider.

This insurance has nothing with a person owning the policy. The coverage is owned only by the vehicle itself. If a different person other than yourself drives the car and causes an accident with injury, they are covered as well. It is a vehicle policy, not a person policy. And when the car is sold to another person, that policy is transferred and remains in force.

A great requirement for vehicles. It covers accidents resulting in injury to a third party and is transferable.

Get more information directly here: Car Insurance Australia and Greenslips NSW

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