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If you own a car in Victoria, you’ll pay for Compulsory Third Party (CTP) insurance at the same time as your rego.
CTP, or the Transport Accident Charge (TAC) premium, as it’s known in Victoria, is the most basic form of car insurance available in Australia and is mandatory. It covers you or another driver causing someone else injury when using your vehicle. You can read more in our guide to the Best CTP Insurance for Australians.
In Victoria, it additionally covers the care of you, or someone else, if injured as the at-fault driver in a motor accident. The requirements for taking out CTP differ between states. We explain what you need to know if you’re in Victoria.
What Is CTP insurance?
Injuring someone or taking a life is one of the most devastating possible outcomes of a motor accident, and is something that can have lifelong implications, including monetary.
In Australia, CTP insurance will cover you, or another driver of your vehicle, if liable for such an incident, compensating and covering the medical care of the injured individual, whether they be a pedestrian, passenger or another driver or rider of a vehicle. In cases where the individual has died, their family can receive a payout. TAC in Victoria is a no-fault insurance scheme which means drivers who are at-fault in an accident can also claim for medical care and support.
Without the TAC in place as a legal requirement, an at-fault driver would have to cover any resulting costs from an accident, out of pocket. Last year, tens of thousands of drivers were able to fall back on the TAC scheme, as it supported 43,000 individuals. Meanwhile, fatal cases are on the rise as 295 lives were lost on Victoria’s roads last year—an increase of 22.4% on the year before.
What Does CTP Insurance In Victoria Cover?
Those injured in an accident can make a TAC claim for:
- Medical care
- Rehabilitation services, to help them while they recover
- The replacement or repair of damaged glasses or dentures
- Income support if they’re unable to work due to their injuries
- Return to work support for them and their employer
- A lump sum payment if they’re are eligible for compensation
- The cost of the application fee to obtain a Medical Treatment Visa if needed.
The scheme can also help parents to be with children who have been hospitalised after an accident, and pay out if they’ve lost more than five days in wages, due to hospital visits. Other benefits include financial support for dependents, travel and accommodation cover for family members visiting hospitalised individuals if they live more than 100 km away, and cover for counselling services, and funeral costs, if someone dies as the result of an accident.
What Does CTP In Victoria Not Cover?
TAC doesn’t extend to damage done to property, your car or someone else’s. For damage, you can choose to take out one of three forms of additional cover:
- Third party property damage: The most basic type of optional car insurance covering damage you’ve caused to someone else’s vehicle or property, if you’re liable for it.
- Third party, fire and theft: The next level up in insurance from third party property damage, it provides the same cover, but also extends to damage to your own car, caused by fire or theft.
- Comprehensive: This is typically the most expensive type of cover, but can offer the most peace of mind, as it provides the widest range of benefits, including car hire while your vehicle is being repaired, or a replacement for your car if it’s written off following an incident .
How Does CTP Work in Victoria?
All vehicle owners in Victoria automatically pay the TAC as part of their rego fee. They can do this online, choosing a three, six or 12-month term before needing to renew it.
As the TAC insurance scheme is owned by the Victorian government, and provided by its Transport Accident Commission, drivers are not offered a variety of insurers to choose between, as in certain other parts of Australia, namely NSW, QLD, SA and ACT. Without private insurers competing in the market, drivers in Victoria have a set price to pay for cover and do not have access to added benefits private insurers sometimes offer such as discounts on their other products i.e. home insurance and other types of car insurance.
You pay your CTP Insurance at the time of registration. Our guide to CTP insurance explains how the cover works across Australia.
How Much Is CTP in Victoria?
You can currently expect to pay the following as your TAC, depending on where you live:
- $552.20 High-risk zone
- $496.10 Medium-risk zone
- $430.10 Low-risk zone
These costs, as stated on the vic.gov.au site, apply to passenger vehicles, depending on whether the owner’s address is deemed high, medium or low risk, according to postcode. You can find out more information about postcode classification.
Frequently Asked Questions (FAQs)
How can I claim on TAC?
To make a TAC claim, you can use the online lodgement form or call 1300 654 329, Monday to Friday, between 8.30am and 5pm, to speak to someone from the Transport Accident Commission. Alternatively, some hospitals can lodge a claim on your behalf.
You should first have all relevant information to do with the accident, your injury and income to hand. You will need written detail of your injuries in the form of either a:
- Hospital discharge summary
- Signed Certificate of Capacity
- Medical certificate
- Letter from your doctor or allied health professional with your injuries listed.
Additionally, you should provide the name and contact details of the health professional you have seen, or the hospital you attended.
You should provide your bank details, and employment or income details if you have had, or will have, at least five days off work due to the accident.
How is the TAC calculated?
The amount you pay as your TAC will be based on:
- Your vehicle type and use i.e. whether it’s a passenger vehicle or other type of motor vehicle.
- Your postcode—this determines whether you’re in a low, medium or high risk zone.
- Any eligible discounts if for example, you’re a pensioner, concession card holder or an apprentice in an eligible trade.
When do I pay CTP Insurance in Victoria?
You pay your annual CTP insurance whenever your first register your car and upon renewal of that registration each year.