Due to the different legislations in each state, the requirements for registering your car and choosing the correct class of Compulsory Third Party (CTP) insurance vary depending on where your car is registered.
What is Compulsory Third Party (CPT) insurance?
CPT insurance protects motor vehicle owners and drivers from being held financially responsible if they injure someone in a motor vehicle accident. It also enables a person who is injured wholly or partly due to the actions of another driver to access medical treatment and rehabilitation support as well as receiving fair and timely compensation.
In SA, CTP insurance is paid at the same time as motor vehicle registration. Just as registration of your vehicle is compulsory, so is CTP insurance. Your CTP insurance premium provides cover under a compulsory Policy of Insurance.
How do I register my car in SA?
In SA, you will need to change your CTP class to Class 6 (District 1 - for cars garaged in Metropolitan Adelaide) or 56 (District 2 - for cars garaged in Adelaide Hills) 'Hire-and-Drive-Yourself vehicle.' The CTP insurance covers the cost of any injuries to others by any driver of your car. If your car is not registered in the correct class, you may be required to pay the Insurance Commission back for any compensation paid to an injured third party in the event of an accident.
Changing your CTP class.
- Fill out the application to change your CTP class on your registration. The premium class you're changing to is 'Hire-and-Drive-Yourself vehicle' - class 6 or class 56. You check your car's current class online here.
- Hand-in the form, along with proof of identity, to your nearest Service SA office.
- You will need to pay a pro-rata amount to upgrade your CTP for the remainder of your current registration.
- Let us know that your CTP has changed via firstname.lastname@example.org.
If Service SA tells you that there is no fee, this means that they have set the change to start when your rego renews next. Ask them to make the change effective immediately.
Make sure to specify that this is not for ridesharing (e.g. Uber), but renting out your car for someone to drive themselves otherwise known as peer-to-peer car sharing. Class 6 or 56 is the correct class for peer-to-peer car sharing.
Changing your CTP class will result in an increase in your annual registration, but you should make this back from your car's earnings. Your annual registration cost may also now be partly tax deductible if your car is registered under an ABN.