There are important differences between the types of insurance coverage available to motorists which is useful to know if you have the misfortune to be involved in a car accident.

Most drivers are familiar with the fact that before a car can be registered, the driver must have compulsory third party (CTP) insurance coverage. In some states and territories of Australia, the cost of CTP insurance can be included as part of the costs of registration, including in Queensland. Alternatively, you can buy this kind of insurance coverage directly from one of the four CTP insurance providers in Queensland.

CTP insurance generally covers the driver’s liability – and that of anyone else who drives the owner’s vehicle – for injuries and death caused to other parties in a motor vehicle accident anywhere in Australia. Significantly, CTP insurance does not cover damage to your vehicle, other vehicles or property.

In this respect, CTP insurance is distinguished from property damage insurance, also known as third party car insurance, which covers your liability to pay for damage you may cause to someone else’s car or property. This type of insurance does not cover damage to your own car. Unlike CTP insurance, it’s not mandatory to have third party property insurance but it will provide peace of mind if someone makes a claim against you for damage to their vehicle after an accident.

Vehicle owners who also want to be covered for damage to their vehicle should consider comprehensive car insurance to include damage to other people’s property as well as damage to their own car whether through an accident, vandalism, extreme weather or other events.

How claims work under each type of policy

CTP claims: Unlike other states where benefits can be paid to a person injured in a motor vehicle accident whether or not they caused the accident, Queensland’s CTP scheme operates on an ‘at fault’ basis. This means an injured person can make a CTP insurance claim if the other driver or vehicle owner was completely or partially at fault for the accident. The injured person will file their claim against the CTP insurance provider of the vehicle that caused the crash. In the situation where the injured person was partly responsible for the crash, they may still file a CTP claim but the amount of compensation they receive may be reduced on the basis of their percentage contribution to causing the accident.

An injured person may be able to have the costs of their reasonable and appropriate rehabilitation expenses met by the insurer before their CTP claim is finalised, provided that liability is admitted.

Queenslanders who are seriously injured in a car accident may be able to access financial support for lifetime treatment and care under the National Injury Insurance Scheme, whether they were at fault for the accident or not. Those who access funds under this scheme may still be able to make a CTP claim. Property damage claims: If your car is damaged in an accident with another vehicle and the driver has third party property damage insurance, you can make a claim against their insurer to cover the costs of repair. Their insurance will also cover any legal costs associated with the claim.

If neither party is insured, you are left with negotiating the costs of repair between the parties and these will need to be met out-of-pocket.

Depending on the policy, drivers with third party property damage insurance may be also covered for damage to their own vehicle in the situation where they were in an accident with an uninsured driver in their own car.

This type of basic vehicle insurance is advisable if you know you will have trouble paying for damage to another’s person’s car should an accident occur.

Uncertain? Seek our expert advice

If you’re uncertain about the difference between a CTP claim and a property damage claim, or need more advice on how to make one of these claims, speak with one of our motor vehicle accident compensation specialists. Whether you’ve been injured in an accident or had your vehicle damaged, or someone is making a claim against you after a crash, at Lifestyle Injury Lawyers we will help you understand the next steps involved depending on your type of insurance coverage.