A survey has found that over 67% road users don't understand the level of coverage their compulsory third-party (CTP) car insurance provides.
According to the report, only 33% of drivers could correctly identify that their greenslip only covered them for injury to other motorists and road users but not damage to vehicles or property.
The data is concerning as it could leave many drivers out of pocket in the case of an accident requiring repairs to their vehicles as they don't have the appropriate level of coverage to cover costs.
The data suggested that younger drivers had the least amount of clarity around their coverage with only 20 percent of 18-24 year olds able to correctly identify the level of coverage provided by CTP insurance.
The demographic with the highest understanding of CTP coverage was the 55-64 demographic with almost 50 percent of all drivers in this age group correctly understanding what their greenslip covered them for.
According to Smith's Lawyers, who handled the research, drivers should consider whether their level of cover is appropriate and understand what the limits of their coverage include.
“Educate yourself on your insurance requirements and legal rights: ask your car insurance provider about what happens when you're involved in an accident-related claim.”