What are the insurance options in Queensland?
Like every other state in Australia, Queenslanders are required by law to have compulsory third party (CTP) insurance at a minimum, but there are a few additional options that offer a bit more protection.
But what are the differences between these types of insurance, and how do you know that what you’re paying for is the right fit for your own situation? Let’s break it down!
Compulsory third party (CTP)
CTP insurance (or a green slip) is mandatory insurance that protects you financially if you cause an accident that injures or kills you, other drivers, passengers or pedestrians. It covers things like medical treatment and rehab - but it doesn’t protect your car, their car or any property of any kind.
It also offers you liability protection, for example if the other party needed compensation for loss of income or funeral expenses.
According to Queensland’s Motor Accident Insurance Commission,”the average cost of a CTP insurance claim is around $100,000 and some claims can cost millions of dollars,” so you can see why this is not only mandatory, but useful.
In QLD, you’ll choose your CTP cover from one of three approved providers - Allianz, QBE or Suncorp. You’ll do this all in one go during the car registration process, making it a simple and straightforward process.
Third-party property and third-party fire and theft
Third-party property (TPP) and third-party fire and theft (TPFT) work very similarly, and they’re the most basic level of optional cover you can buy in QLD.
Both will cover you for damages you cause to others’ property, like their car, things inside their car, someone’s unlucky fence and the like.
With TPP and TPFT, some insurers will throw in a tiny amount of cover if an uninsured driver damages your car.
The only major difference between the two, is that Third-Party Fire and Theft will cover your car if it’s stolen or catches on fire - useful if you live in a high-crime or bushfire-prone area.
It’s important to note that neither of these will cover your car for anything else: for example, crashes you cause, weather-related damage or falling branches.
Comprehensive
Comprehensive car insurance is the highest level of car insurance you can get. It covers everything TPP and TPFT do, plus a wide range of cover for your car, like full cover for weather-related events, theft, vandalism, fire, damage from uninsured drivers, hit-and-runs, and more.
It also usually includes some perks like providing you with a hire car after an accident, or paying for accommodation if you’re in a crash far from home.
If you drive a new or valuable car, it’s definitely worth considering comprehensive car insurance. If you have a car loan, it’s likely the lender will require this level of cover anyway.
Bear in mind that each comprehensive car insurance policy will offer different inclusions and levels of coverage, so you should choose a policy that suits you and your needs. A good way to do this is my consulting our table above, or by reading the PDS of any policy you’re considering.
How is my insurance premium calculated in Queensland?
Insurance companies factor in a range of details when calculating your quote. Some of the most common are:
Your age. More experienced drivers typically pay lower premiums. That’s why younger drivers tend to fork out far more for their insurance.
Your gender. According to the 2024 Mozo Car Insurance Report, women tend to pay less for car insurance than men do at all stages of life - although this gap narrows over time.
Where you live. Your suburb plays a huge part in your premium. High crime areas, urban areas, and other areas where damage is more likely to occur will usually incur higher premiums vs, say rural areas.
Where you park. Drivers who leave their cars in secure garages are likely to receive a lower quote than those who rely on street parking.
Your car. When it comes to your car itself, there are a number of factors that impact your quote including the model, its age, the size, the security system, and of course how much it’s worth.
Driving habits. Insurance providers are becoming more accommodating of car owners who use their cars differently, with many offering lower rates to those who only drive a certain number of kilometres each year. Plus, safer drivers tend to pay less in general, and may be eligible for no claims bonuses.
What car insurance discounts are available to help me save in Queensland?
Insurances is a quite competitive industry, so there are no shortage of possible discounts available in Queensland, including:
No claims discount. Some insurers offer a scheme that offers discounts every year you don’t make a claim. After 5 years of not claiming, you can save up to 15% per year ongoing. Plus you can often transfer your no claims bonus over to a new provider as long as the new provider also offers it.
Online Discount. To incentivise customers to sign up on their websites, many providers now offer an online policy discount in the region of 10%-15%.
Loyalty bonus. If you’ve stuck with the same policy for a number of years, you may be offered a discount (usually starting at 5%) off your premium as a way of saying thanks. If they don’t, then you can always ask for one (check out our handy haggling guide if you’d like some help)!
Multi-policy discount. Need cover for some of the other valuables in your life? Most insurance companies will give you a multi policy discount (think 5-10% off) for every additional policy you sign up for, including everything from pet to home insurance.
Restricted driver discount. Generally you’ll be able to lower your premium if you limit the number, or the age of the people who are insured to drive your car. For instance, you could see a discount if you restrict drivers of your car to being over the age of 25.
Energy efficient discount. Do you drive a low emissions or fuel efficient car? As environmentally friendly vehicles have increased in popularity, so have the number of insurance companies providing incentives to drive them - including discounted premiums.
How do car theft and accidents affect insurance premiums in Queensland?
As explained above, there are a number of factors that are taken into account when calculating your premium, including where you live. So the rate of car theft and road accidents will most likely have some effect on what you pay.
Car theft in Queensland
Queensland has historically had the highest number of car thefts compared to any other Australian state or territory. According to QLD Police, after a brief downturn during the pandemic years of 2020 and 2021, cases are on the rise again with more than 32,000 vehicle thefts in each of 2022 and 2023, with 2024 on track to match those.
In fact, insurance provider RACQ issued a warning to Queenslanders to be on the alert, after 1,450 car theft claims in FY24 cost more than $39 million. RACQ drew special attention to these coastal areas:
Townsville, 164 claims
Inner Brisbane, 103 claims
Brisbane South, 134 claims
Gold Coast, 195 claims
Sunshine Coast, 60 claims
A good way to protect your car from theft in these and other high-risk QLD areas, and potentially reduce your premiums, is to park in a secure garage if you can.
And while comprehensive car insurance offers the widest range of overall protection, if you decide on a lower level of cover, and are concerned about theft, Third-Party Fire and Theft will be helpful in this unfortunate scenario.
Car crashes in Queensland
According to the Department of Transport and Main Roads, there were 176 fatal crashes, equaling 197 total fatalities between 1 January to 17 November 2024 in Queensland.
While not all crashes are fatal, of course, this gives you a good idea about the prevalence of accidents in the state.
The Queensland Government website offers solid advice for staying safe on the roads, including how to handle unsealed roads (gravel, dirt, etc), beach driving, driving on country and remote roads, driving in different weather conditions, driving in close proximity to heavy vehicles and overtaking a road train.
