If you’re learning to drive
If you’re learning to drive or supervising a learner in New South Wales, there’s one type of insurance you’ll hear about straight away: CTP insurance, also known as a Green Slip.
But here’s the problem. Many people misunderstand what it actually covers.
This matters because the wrong assumption can lead to serious financial risk.
Let’s break it down clearly.
What CTP Insurance Actually Covers
In NSW, CTP insurance is regulated by the State Insurance Regulatory Authority (SIRA) and is required for every registered vehicle.
CTP is designed to cover people injured in a crash.
It includes:
- Medical treatment (hospital, ambulance, rehab)
- Loss of income
- Care and support services
- Compensation for serious injuries
👉 In simple terms:
CTP covers people, not cars.
How It Applies During Driving Lessons
If you’re learning with a professional instructor:
✔ Covered
- The learner driver
- The instructor
- Other drivers, passengers and pedestrians
If a learner makes a mistake and causes an accident, CTP will cover injuries to everyone involved.
❗ Not Covered
- Damage to the instructor’s car
- Damage to other vehicles
This is why professional instructors always carry comprehensive insurance.
Practising with a Parent or Supervisor
This is where confusion is most common.
✔ Covered
- Learner driver
- Supervising driver
- Anyone injured in the accident
Even if the learner is at fault, CTP still applies.
Important clarification:
CTP is linked to the vehicle, not whether the supervisor is “responsible”.
What Happens During the Driving Test?
During a driving test:
✔ Covered
- The learner
- The testing officer
- Other road users
If an accident occurs, injuries are covered under the vehicle’s CTP policy.
What If the Learner Is At Fault?
Under the Motor Accident Injuries Act 2017 (NSW):
- All injured people can access initial support benefits
- This includes treatment and income support for a limited time
However:
- Long term compensation depends on fault and injury severity
❌ What CTP Does NOT Cover (This Is Critical)
🚫 Vehicle and Property Damage
CTP does not cover:
- Car repairs (yours or someone else’s)
- Damage to property (fences, poles, buildings)
Real world example:
A learner accidentally hits a high end vehicle.
- CTP pays: $0 for the damage
- The driver or vehicle owner is responsible unless insured
Why This Matters for Learners
Many learners and parents assume:
“We’re covered because the car is insured”
That is only partially true.
Without third party property or comprehensive insurance, you could be exposed to:
- Tens of thousands of dollars in damage costs
The Simple Rule to Remember
CTP = Covers people
Other insurance = Covers things
Quick Summary
Situation | Injuries Covered | Vehicle Damage Covered |
|---|---|---|
| Driving lesson | ✅ Yes | ❌ No |
| Practice with parent | ✅ Yes | ❌ No |
| Driving test | ✅ Yes | ❌ No |
Final Thought
Understanding CTP insurance isn’t just about passing your test. It’s about protecting yourself, your family and everyone else on the road.
If you’re unsure whether you’re properly covered, it’s worth checking before your next drive.
Need Help Building Confidence on the Road?
At Let’s Go Drive, lessons are structured to help learners not only pass the test, but become safe, confident drivers for life.
If you have questions about driving, road rules or staying safe behind the wheel, feel free to get in touch.
Sources
- NSW State Insurance Regulatory Authority (SIRA) Green Slip Scheme
- Motor Accident Injuries Act 2017 (NSW)
CTP Insurance in NSW: What Every Learner Driver (and Parent) Needs to Know