If you’re buying your first car, it can be difficult to work out which insurance option is right for you.
We’ve put together a quick guide to the different types of car insurance available in Queensland.
CTP insurance is often paid at the same time you pay vehicle registration and is designed to cover the cost of compensation claims of anyone involved in a crash who is not at fault.
As the name suggests, it’s compulsory to have CTP for every vehicle registered in Queensland and drivers can choose between four providers.
CTP insurance does not cover the damage caused to vehicles or property as the result of a crash, or injuries to the person who is at fault.
Drivers who choose to just pay for CTP should consider whether they could afford repairs to their car, property (such as signage or road infrastructure) or a third party’s car.
Third party liability car insurance covers damage caused to a third party’s vehicle (or other property such as signs, fences etc) in a crash where you’re the at fault driver.
As it doesn’t cover your car at all, third party liability car insurance may be suitable if your car’s not worth much or if you can manage without a car in the event of a crash.
It’s easy to confuse CTP, third party liability car, and fire theft and third party liability car insurance but they’re very different insurance products.
Just like third party liability car insurance, Fire theft and third party liability car insurance covers damage to other cars (or other property such as signs, fences etc) if you cause a crash.
The major difference is it also covers your car if it is stolen or damaged by fire.
It’s important to be aware that it doesn’t cover your car if you’re in a crash that’s your fault so consider whether you would be able to afford repairs to your car.
Comprehensive car insurance covers repairs to your car and other people’s property or vehicles, even if the crash is your fault. In most cases, it also covers your car if it’s stolen or damaged by fire or flood.
While comprehensive car insurance is usually the most expensive, it can save you money if you can’t afford to pay for repairs to your car or a third party’s car.
There’s a lot to consider when choosing car insurance so visit Moneysmart’s guide to car insurance for more information on the different aspects of car insurance, such as excess, market value and comparing costs. Make sure you always read the Product Disclosure Statement (PDS) on any insurance before agreeing on a policy.
At RACQ, we provide different levels of car insurance cover to product against loss or damage. Find the right car insurance product for your vehicle, by comparing our car insurance options.
Insurance products (excluding Travel Insurance and the Life and Income Protection Insurance suite of products) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on the product. You can also access our Target Market Determinations on this website.
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.