Road Transport & Accidents
11. Compulsory Insurance
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 26 Aug 2015
- All vehicles are required to have purchased compulsory third party insurance prior to registration. In NSW for example this is commonly referred to as a ‘green slip’ because of the colour paper it has been traditionally printed on.
- Compulsory third party insurance covers a driver against claims made by other road users from injury or death resulting from an accident.
- The insurance policy must be for a period of twelve months for light vehicles.
- Trailers and caravans do not require compulsory third party insurance.
- Compulsory third party insurance will not cover you for the costs of repairs or additional expenses in the event of an accident. This requires additional insurance coverage.
- Although it is not compulsory to have additional insurance to cover property damage it is highly advisable. Insurance claims can involve substantial amounts of money especially if you have caused an accident in which an expensive vehicle is involved. Insurance can substantially reduce the amount of money that you are liable to pay in the event of an accident.
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