Compulsory Third Party Insurance in the ACT

What is CTP Insurance?

Compulsory Third Party (CTP) Insurance is a type of Car Insurance that drivers are required to hold. At its most basic, if you get into an accident and you’re at fault, it covers your legal liability for injuries to others, including pedestrians, cyclists, passengers, and other drivers.²

CTP Insurance can work a little bit differently depending on which state or territory you’re in. In New South Wales it’s often called Green Slip Insurance, whereas in the ACT it goes by the name Motor Accident Injuries (MAI) Insurance. The details of exactly what it covers can vary, too.

Wherever you are though, all CTP Insurance still has one thing in common: it protects you financially if you injure someone else on the road.

If you don’t have CTP, you could be held liable for all these costs. Yikes! The good news is, it’s pretty hard to forget to get CTP – because it’s mandatory, it’s generally part of the process when you register your car.³

How does CTP Insurance work in the ACT?

Back in 2020, CTP Insurance in Canberra got a refresh. The slightly boringly named Compulsory Third-party (CTP) Insurance Scheme got replaced by the (OK, still pretty boring) Motor Accident Injuries (MAI) Scheme.⁴

This isn’t just a name change, though: MAI is the definitely souped-up version of the old scheme. While the old scheme only covered you for other people who got injured (hence the name ‘third party’), the new one also covers your own injuries, no matter who was at fault.⁵ Anyone injured is also entitled to receive benefits for medical treatment and lost income for up to five years.⁶ Essentially? It gives Canberrans more of a safety net if they get injured on the road.

What makes CTP Insurance in the ACT Unique?

When it comes to CTP Insurance, the ACT has one of the most comprehensive schemes out there. Just take a look at how it stacks up to the other states and territories:

Yep, Canberra checks all the boxes! So, what do those boxes actually mean?

• Community rated: Your premiums are based on industry averages, not on your individual driving patterns or driver history.
• No fault scheme: Everyone involved in an accident is insured, no matter who was at fault.
• Payment for lost income: Injured people can be compensated for income they’ve lost or will lose as a result of the accident.
• Multiple insurers: Instead of being provided directly through the government, CTP is sold by different Insurance Providers, and you can choose who you take out a policy with.

How much does CTP Insurance cost in the ACT?

When it comes to the price for MAI Insurance, there’s some wiggle room. You’ve got four options to choose from – AAMI, APIA, NRMA and GIO – all with their own prices.³⁹ But here’s where it gets better: MAI’s community-rated system means things like your driving record or the make and model of your car won't jack up your premium.⁴⁰

So, while different insurers still charge different premiums, each specific insurer only charges one premium for all passenger cars.

What a relief! But how much do these premiums actually cost, you ask? Well, annual premiums range from $396.20 to $417.90 for passenger cars.^41,42,43,44 Keep in mind that this price is not for people who receive input tax credits towards their MAI premium; for them it will cost slightly more.

What doesn’t CTP Insurance cover in the ACT?

MAI Insurance can be a lifesaver when it comes to medical and rehabilitation costs, but it won’t give you protection for everything. Let’s break down some of the things it doesn’t cover:

• Vehicle damage: MAI Insurance won’t pay for repair costs. This is bad enough if someone busts up your car. But if you cause an accident and smash into another person’s car? You might also be liable for the damage.
   
• Property damage: Knocking over someone’s mailbox or crashing into their fence isn’t covered by MAI Insurance either.
   
• Unlawful activity: People who break the law while driving might not end up receiving any MAI benefits.⁴⁵ Of course, upstanding Canberrans like yourself can probably rest easy here!

So, while MAI is essential for personal injury claims, it still has its limitations. This is where considering additional Car Insurance might be a good move.

Do I need additional insurance on top of CTP?

Legally, you don’t have to hold any other Car Insurance policy besides MAI. However, it’s worth noting that MAI is the bare minimum. If you don’t have any additional insurance, you could be leaving yourself open to a lot of risks. Hopefully, your car will never get stolen and you’ll never crash into someone else. But if you do? The costs could be a lot more than what you’d end up paying for an extra premium.

You can also decide the level of cover. From least to most expensive, you can pick from the following:

• Third-Party Property Insurance: This one goes beyond CTP by covering the costs if you damage someone else's car or property.⁴⁶ It's a good next step for broader coverage.
   
• Third-Party Fire and Theft: This policy includes everything in Third-Party Property and adds on coverage for your own car if it's stolen or damaged by fire.⁴⁷
   
• Comprehensive Insurance: This is the full package. It covers damage to your own car, whether it gets smashed in an accident or wrecked by a storm.⁴⁸ Some insurers even include extra perks like emergency accommodation.⁴⁹

It’s also worth noting that none of these policies cover you for personal injuries. That’s something only MAI Insurance covers – which is part of what makes it so important. 

How do I renew my CTP Insurance?

The ACT keeps things pretty simple when it comes to renewing your MAI Insurance: you take care of it as part of your rego.⁵⁰

When it’s time to renew your car registration and MAI policy, Access Canberra will give you a little nudge.⁵¹ You can pay for both of these essentials through Access Canberra’s website, with a little extra flexibility when it comes to your premiums: you can pay for them in three, six or 12-month instalments.⁵²

Where can I find and compare Car Insurance?

If you’re after a Car Insurance policy that goes a bit further than simple MAI, then iSelect has got you covered.

Using our online comparison tool, you can compare a range of policies from different providers.* Whether you’re after Third Party Property Insurance, something for fire and theft, or Comprehensive Cover for all of life’s ups and downs, you’ll find a vast selection. So give it a go today – it’s simple and free!

^{Sources:
1 The Canberra Times – Make fun of Canberra's roundabouts if you will, but experts agree they make our roads safer
2 ACT Treasury – Frequently Asked Questions
3 Moneysmart.gov.au – Choosing car insurance
4 ACT Government Motor Accident Injuries Commission – Your MAI Insurance
5 As above
6 As above
7 ACT Government Motor Accident Vehicles Commission – How MAI insurance premiums are set
8 NSW Government State Insurance Regulatory Authority – How are prices set?
9 Transport Accident Commission – Transport Accident Charge
10 MAIC – CTP insurance premiums
11 CTP Insurance Regulator – How CTP premiums are set
12 Government of Western Australia Department of Transport – Motor Injury Insurance
13 MAIB – What is the MAIB?
14 Northern Territory Government – Registration and Fees
15 ACT Government Motor Accident Injuries Commission – Your MAI Insurance
16 NSW Government State Insurance Regulatory Authority – A guide for people injured in motor accidents in NSW
17 Transport Accident Commission – What is a TAC claim?
18 Motor Accident Insurance Commission – Who can claim
19 CTP Insurance Regulator – Compensation
20 Insurance Commission of Western Australia – Compulsory Third Party
21 MAIB – About the MAIB
22 MACC – About MACC
23 ACT Government Motor Accident Injuries Commission – What types of support are available
24 NSW Government State Insurance Regulatory Authority – A guide for people injured in motor accidents in NSW
25 Transport Accident Commission – What is a TAC claim?
26 MAIC – What you can claim
27 CTP Insurance Regulator – Economic Loss
28 Insurance Commission of Western Australia – Compulsory Third Party
29 MAIB – About the MAIB
30 MACC – Level of benefits
31 Motor Accident Injuries Commission – Learn about your MAI insurance policy
32 State Insurance Regulatory Authority – How to buy a Green Slip
33 Transport Accident Commission – What is a TAC claim?
34 MAIC – Purchasing CTP Insurance
35 CTP Insurance Regulator – CTP Insurers
36 Insurance Commission of Western Australia – Insurance Policy
37 MAIB – About the MAIB
38 MACC – Get insured, get covered
39 ACT Government Motor Accident Injuries Commission – Learn about your MAI insurance policy
40 ACT Government Motor Accident Vehicles Commission – How MAI insurance premiums are set
41 ACT Government – NRMA MAI Premiums effective 13 October 2023
42 ACT Government – GIO MAI Premiums effective 22 August 2023
43 ACT Government – AAMI MAI Premiums effective 5 December 2023
44 ACT Government – AAPIA MAI Premiums effective 23 May 2023
45 ACT Government Motor Accident Injuries Commission – Who is eligible for the MAI Scheme
46 Moneysmart – Choosing Car Insurance
47 As above
48 As above
49 Budget Direct – What car insurance covers
50 Motor Accident Injuries Commission – Learn about your MAI insurance policy
51 Access Canberra – Motor vehicle registration and renewal
52 Access Canberra – Forms and fees}