Green Slip Refunds — When You Get CTP Money Back

Because a green slip is paid up front for a set period, there are times when part of what you paid comes back to you. A refund generally arises when the registration the green slip supports comes to an end before the cover does, most commonly when you sell the vehicle or cancel its registration.

The amount is worked out on a pro-rata basis. You are refunded for the portion of the term you have not used, so the earlier in the period the cover ends, the larger the refund, and a green slip cancelled close to its expiry returns little or nothing. It is the unused premium, not the whole premium, that comes back.

The refund is handled by the insurer that issued the green slip, and it is usually tied to cancelling or transferring the registration itself. Once the registration is cancelled or the vehicle is transferred, you approach your insurer to arrange the refund of the unused portion. Keeping the green slip details and the insurer's contact to hand makes that straightforward.

It is worth remembering that the refund follows the policy, so if you have sold the vehicle, cancelling the registration and claiming any unused green slip premium is a separate step from handing over the car. It does not happen automatically.