Even the most careful of drivers can run into accidents. One moment of distraction from a careless driver or an unfortunate vehicle malfunction in the middle of a highway can lead to insurance calls, expensive repairs, and a tonne of stress.
But there is one question that plenty of drivers still ask: Is it illegal to drive without insurance in Australia?
The short answer is “yes,” but it depends on the type of insurance we’re talking about.
In Australia, all registered vehicles are required to have Compulsory Third Party (CTP) insurance. If you don’t have it, you’re driving illegally.
However, CTP only covers injuries to people, and not the cost of fixing your car or anyone else’s. For that, you’ll want Third Party Property Damage or Comprehensive insurance.
What is the Difference? CTP vs Car Insurance
CTP and car insurance are not the same thing (no matter how often these two get interchanged or mixed up).
| Features | Compulsory Third-party (CTP) / Green Slip | Car Insurance (Third Party Property Damage, Fire & Theft, Comprehensive) |
| What It Covers | Covers injury or death to other people caused by your vehicle in an accident. | Covers damage to vehicles or property, depending on the type of policy. |
| Who It Protects | If the crash happened in NSW, it covers you and other drivers, pedestrians, passengers, and cyclists. If the crash happened outside of NSW, it only covers other drivers, pedestrians, passengers, and cyclists (not you). | You and others involved in the accident. |
| Included Upon Registration? | In NSW, you are required to buy it separately before registering your vehicle. | Purchased separately |
| Additional Notes | → Does not cover damage to vehicles or property. → Driving without CTP is illegal. | It’s optional, but highly recommended for financial protection against repair costs or theft. |
Is It Illegal to Drive Without Insurance in NSW (and Australia)?
Let’s reiterate this one more time, and clear this up once and for all.
- It is illegal to drive without CTP. You can’t register or legally drive without one.
- It is not illegal to drive without Comprehensive or Property Damage insurance. You’re not breaking the law if you don’t have these, but if you cause damage, you’re personally liable for every cent.
You can drive on Australian roads with only a CTP, but it’s financially risky. The risks are even higher if you own a high-end vehicle, where one repair bill can easily mount up to five-figure sums.
Why Should Prestige Car Owners Always Have Extra Cover?
CTP protects people, but it won’t help fix dented panels, crushed bumpers, a smashed chassis, or complex electrical damage. These are common (and expensive) in prestige vehicles that unfortunately meet road accidents.
For drivers of brands like Mercedes-Benz, Tesla, BMW, Audi, repairs usually involve:
- Advanced paint matching and finishing
- Genuine parts replacement
- ADAS recalibration
- Safety system testing
- Qualified technicians who specialise in prestige automobiles
That’s why, at least, Third Party Property Damage (TPPD) insurance is recommended, but Comprehensive cover is the smarter choice. Comprehensive insurance covers both your car and the other driver’s. At the end of the day, you can rest easy knowing you won’t have to agonise over a massive repair bill.
The Penalties and Risks of Driving an Uninsured Vehicle
Driving an uninsured vehicle (and also unregistered), has big consequences. Drivers caught driving without a CTP could face:
- Registration suspension or cancellation
- Fines amounting up to $10,000
- Potential legal claims if you injure someone
And if you skip optional cover (e.g. Comprehensive and Third Party Propert Damage), it will cost you tens of thousands of dollars. A minor scrape on a prestige vehicle can easily result in repair quotes worth $5,000 to $10,000. Serious damages from collisions can go far higher.
How to Stay Protected (and Avoid Headaches)
Here’s how to stay covered and stress-free while driving on the road:
- Check your CTP before registration renewal. In NSW, your CTP (Green Slip) should be active before renewing your vehicle registration. If it lapses, you can’t legally drive.
- Add Third Party Property Damage or Comprehensive Cover. TPPD covers the damage you cause to other vehicles or property, and Comprehensive insurance covers what TPPD covers, plus your own vehicle. The cover also includes storm, theft, and vandalism damage.
- Keep proof of insurance on-hand. Store your insurance details or Green Slip on your phone or in your glovebox. It will save you time in case an accident happens.
- Work with a trusted repairer. Choose a repairer who can manage the process thoroughly, from claims and recovery to repairs and courtesy cars.
Final Words
You need CTP to get on the road in the first place, but on top of that, having Third Party Property Damage or Comprehensive insurance is so important too. The extra cover protects you from financial stress and makes sure that your vehicle gets repaired properly.
Contact us today to learn more about our full-service solutions — from claims management to delivery high-end repair quality.