Insurance is there to protect you when something goes wrong so make sure you have the right level of protection before you get behind the wheel.

Getting it right

Insurance can be difficult to get your head around, so here are a few terms you should be familiar with before you get started:


An insurance premium is the annual price that you pay for your motor vehicle insurance policy.

A premium is usually calculated on the following factors*:

  • the year, make, model and type of your car
  • any accessories or modifications fitted to your vehicle
  • your age
  • your insurance and driving history
  • the suburb where your car will be garaged.

*Some insurers have even more underwriting considerations.


Most car insurance policies need you to pay an excess in the event of an accident or theft. An excess is the amount of money you have to pay towards the cost of a claim. The insurance company will cover the difference if your claim is accepted and in most cases, if you are not at fault you will not have to pay the excess at all.

Age Excess

An age excess applies to younger drivers. This means if you’re under a certain age, usually 25, you will need to pay a higher excess amount.

Compulsory Third Party (CTP) Insurance

This is the only type of insurance that is compulsory. You need to pay it every year along with your car registration.

CTP Insurance protects you against legal liability due to injury to another person, no matter who is driving your car at the time. It covers bodily injury only, not other people’s property. If you are the ‘at-fault’ driver, you will not be covered for your injuries under the statutory CTP insurance cover. If you want cover for when you are injured as an ‘at fault’ driver, ensure you select a policy where the insurer provides that extra cover.

You can select your CTP insurer when your car registration is due for renewal or you can nominate RACQ Car Insurance as your CTP insurer at any time. RACQ CTP cover includes At Fault Driver Injury Insurance at no extra cost for added peace of mind.

Find the right option for you and your car

RACQ car insurance can help you protect your car and help you get back on the road sooner. We have three car insurance options:

Comprehensive Motor Vehicle Insurance

Covers you:

  • if your car is damaged or stolen
  • for accidental damage to another person’s car, property, or bodily injury (up to $20,000,000)
  • for a number of additional and optional benefits, and Aussie Assist at no extra cost.

Motor Fire, Theft and Third Party Liability Insurance

Covers you:

  • if your car is stolen or accidentally damaged by fire
  • for accidental damage to other people’s car, property, or bodily injury (up to $20,000,000).

Motor Third Party Liability Insurance

Covers you:

  • for accidental damage to other people’s car, property, or bodily injury (up to $20,000,000).

Third Party Liability Insurance is different to the CTP Insurance you get when you register a car as it covers property damage you cause in an accident.

Visit RACQ Car Insurance for more about car insurance policy options.