Getting a cheap green slip in Sydney is possible if you know how to go about comparison shopping. Getting your green slip from the right insurer can save you a lot of money each year, especially as insurance costs continue to rise. In this article we cover why you need a green slip, what comparison shopping is, and how to use it to find the best deal possible.
What is the CTP Green Slip?
A green slip is the more common name for compulsory third-party (CTP) insurance in Australia. It is named for the color of paper that the insurance papers are printed on, that easily distinguish it from other forms of insurance like the pink slip. CTP insurance is required for any vehicle to be allowed to drive on any public roads in Australia. You must renew your CTP every year in order to renew your registration papers when they expire.
What is the Purpose of CTP Insurance?
If you are involved in a traffic incident then your CTP insurance is responsible for covering the medical costs of anyone else injured. Without a green slip you are liable to pay for any medical expenses of parties involved in an accident and this is often a lot more money than the average person can afford. The Australian federal government recognizes this fact and, as such, they enforce mandatory third-party medical insurance for every vehicle on the roads. This way, anyone injured will have medical cover for emergency services and follow-up treatments. Without this coverage many people would go untreated and many more people would file for bankruptcy after an accident.
What is Comparison Shopping?
Comparison shopping is used in many different markets but it is especially important in the CTP insurance market where there is multiple sellers offering a similar product for different prices. Good comparison shopping requires you to compare everything that a seller offers, from price to additional benefits and features. Correct comparison shopping will be able to find the perfect product for you whilst also finding the cheapest price possible.
How to Comparison Shop
There are a number of different ways to comparison shop for green slip insurance and each has its own benefits and drawbacks. The following three options are the most commonly used methods for comparing CTP insurance from the different providers.
Comparing Insurers Manually
This is the most common way of comparing prices and it is a good way to become familiar with each of the CTP insurance providers. A manual comparison involves simply going around to the offices of each insurer and either talking to a representative or picking up brochures. When talking to a representative it is a good idea to take a pen and paper to take notes on features and prices offered by each provider. The main advantage of this method is that you actually get to experience the service and facilities of each provider. The disadvantage of this method is that it can be quite time-consuming.
Talking to each provider over the phone is very similar to a normal manual comparison as you still get to experience the quality of service while finding out information. It is typically easier than going around to different offices, especially if some of your options are out-of-town. The downside to this method, however, is that it can be somewhat expensive to sit on multiple phone calls for many minutes, though this mainly depends on your phone plan.
Online Comparison Tools
The most modern and fastest method available to you is to use online comparison tools. There are many different tools available and you should try at least two to ensure you are getting accurate prices. These tools have you input some information about yourself including your age and driving history and then they generate prices for each of the major insurance providers. This method is incredibly easy and fast but it does have some downsides. The first downside is that you only really get information on pricing and not extra features covered (such as additional coverage). The second disadvantage is that you do not get to personally assess the service and atmosphere of each provider.
What Providers are Available in Sydney?
There are seven main CTP insurance providers that operate in Sydney. These are Allianz, QBE, NRMA, AAMI, Zurich, GIO and QBE. As mentioned earlier most of these offer very similar features in their green slips but there are some variations and there are also some price differences depending on your specific details.
What to Look for in CTP Insurance
The main difference in CTP insurance besides prices is at fault driver coverage. This additional coverage pays for your own expenses when you cause a crash through dangerous driving or inattentiveness. This may be a big concern for you if you cannot afford comprehensive insurance and want coverage for yourself regardless of fault. If this is the case then be sure to carefully assess the insurers who do offer at fault driver coverage on their CTP insurance.
Insurers that Do Offer At Fault Driver Coverage on their CTP Insurance - Allianz, GIO, NRMA and Zurich are the four providers who do offer at fault coverage and you should assess the prices from these four if this additional coverage is important for you.
Insurers that Don't Offer At Fault Driver Coverage on their CTP Insurance - QBE, Allianz through thier CIC branch, and AAMI do not offer this additional coverage. However, their prices are often slightly cheaper than the other four. If you are looking for the cheapest option then you should assess these three providers.
Under 25 Year Olds Looking for At Fault Driver Coverage - You should note that none of the providers offer at fault driver coverage through their CTP insurance to people who are under 25 years old. This is because this age group is considered high risk and is often at fault in accidents. You can, however, get at fault driver coverage through compulsory insurance if you can afford it.
What is the Best CTP Insurer in Sydney?
It is quite difficult to assess which supplier is best for you for a cheap green slip in Sydney because prices and features typically vary between providers depending on your own age and driving history. However, if you are on a motorcycle rather than in a car then QBE is the most motorcycle-friendly with combined CTP and comprehensive motorcycle insurance.