What is the difference?
It is important to understand the different types of insurance for motor vehicles. Most people take out insurance to cover them if their vehicle is damaged, or if they are in an accident and damage another vehicle or property. This often referred to as comprehensive car insurance. Some people elect to only insure for property damage to another vehicle and not their own. This may be the case if their vehicle is old or in poor condition.
CTP insurance stands for Compulsory Third Party insurance. This insurance is paid when registration for a vehicle is renewed and is compulsory. The only option is to select the insurer, as there are several that are authorised by the Motor Accident Insurance Commission to provide this type of insurance.
CTP insurance protects the driver, or another person in respect to the vehicle, that causes personal injury to another person. If the injured person brings a claim for damages for personal injury, the CTP insurer will protect and indemnify the person who was at fault. Unlike property insurance, there is no excess to be paid.
It is important to understand that the CTP insurance for your vehicle does not provide money to you if you are injured in an accident. The CTP insurance protects you if you are sued by another person injured in the accident due to your fault.
If you have been involved in a motor vehicle accident and have been injured we are happy to discuss with you whether you may have a claim – contact us today.