Do CTP and MAI Insurance cover vehicle damage?


If you’re purchasing car insurance for the first time, you might be wondering what type of cover you need. It’s important to know what different kinds of policies include, and what they don’t. If you’re wondering what you’re covered for with Compulsory Third Party (CTP) or Motor Accident Injuries (MAI) Insurance read on to find out how it differs from Third Party and Comprehensive Car Insurance policies.

What do CTP and MAI Insurance cover?

When you register a vehicle in Australia, you are required to have either Motor Accident Injuries (MAI) Insurance (in the ACT) or Compulsory Third Party (CTP) Insurance (in other states and territories).

Both CTP and MAI Insurance can help the at-fault driver with compensation or personal injury payments in an accident where somebody is killed or injured. This may include compensation for:

  • Drivers of other vehicles
  • Cyclists
  • Pedestrians
  • Motorcyclists
  • Passengers

The driver at fault may also receive some compensation, but to a lesser extent. The details can vary between states and territories. For example, in the ACT, Motor Accident Injuries (MAI) Insurance covers all people injured in a motor accident, regardless of fault, for up to 5 years.

Although CTP and MAI Insurance are compulsory in Australia, it’s still good to know what you’re covered for, and whether you need additional motor vehicle insurance.

What don’t CTP and MAI Insurance cover?

CTP and MAI Insurance do not cover:

  • The cost of damage caused to vehicles, including your own
  • Damage to property
  • Vehicle theft.

If you’re looking for an insurance policy that covers vehicle damage, property damage or theft, you’ll need to opt for a Third Party or Comprehensive Car Insurance policy.

What is the difference between CTP, MAI Insurance and Third Party Car Insurance?

As mentioned above, CTP and MAI Insurance cover you financially for injury or death caused to others in a motor vehicle accident, but not for damage to vehicles or property. Third Party Car Insurance, on the other hand, can cover damage to another person’s car or property if you’re at fault.

How do I get CTP or MAI Insurance in my state or territory?

In most states and territories, CTP or MAI Insurance is included in your vehicle registration fees. In the ACT, Queensland, and South Australia, you can choose your CTP or MAI insurer when you register your vehicle. But in Victoria, Western Australia, Tasmania and the Northern Territory, you won’t have a choice of provider, as their schemes are government-run.

If you’re in NSW, you’ll have to purchase CTP – often called a ‘Green Slip’ – separately before you can register your vehicle. You can purchase your Green Slip Insurance with AAMI online now.

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Is CTP or MAI Insurance enough cover for you?

It may be tempting to save a little cash by sticking with CTP or MAI Insurance alone, especially if this is your first time buying insurance. But out-of-pocket expenses for vehicle damage (your own or others’) can be a huge stress for anyone, especially new drivers. If this is something you’re concerned about, you might feel better purchasing a Third Party or Comprehensive Car Insurance policy.

You can compare AAMI’s car insurance options, or get an online quote now to see which level of cover is right for you.

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Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Read the Product Disclosure Statement before buying this insurance. Go to for a copy. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.