What Is CTP Car Insurance
Anyone who owns and operates a motor vehicle needs to have auto coverage. And, there is good reason to have CTP car insurance. CTP is called compulsory third party coverage for vehicles. This type of coverage had some early beginnings in Australia. The reason it became law was because since coverage was an option at the time, this coverage could pay for auto accidents that resulted in bodily injuries to other drivers. What is CTP car insurance?
At this time in Australia’s history, coverage was not a requirement, it was an option. This was a poor idea at the time because it left many without the funds to take care of those they hurt in an auto accident. This left the victims also with a financial hardship.
CTP is a coverage that will cover and protect you as a driver of a vehicle. It will protect you from possible lawsuits that could cause you a financial hardship from not being covered.
The term third party has a special meaning when it comes to the kind of coverage. A third party is a person who may be a passenger in the car that causes the accident, or it may be a person who is driving the car that was hit in the accident. Even more, it may a person who was a passenger in the car struck, a pedestrian, or even a motorcycle rider.
This insurance has nothing with a person owning the policy. The coverage is owned only by the vehicle itself. If a different person other than yourself drives the car and causes an accident with injury, they are covered as well. It is a vehicle policy, not a person policy. And when the car is sold to another person, that policy is transferred and remains in force.
CTP insurance is a requirement. It is not a policy owned by a person, but a vehicle. It covers bodily injury caused by an auto accident.
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