The Motor Accident Insurance Commission (MAIC) has released its 2025 Motorists and new car buyers report, shedding light on how Queenslanders understand and engage with Compulsory Third Party (CTP) insurance. The findings, based on feedback from focus groups and a statewide survey of more than 750 motorists and new car buyers, show that while many motorists value CTP insurance, there are still gaps in awareness and understanding.
Most registered vehicle owners (93%) were aware of CTP insurance when prompted, a figure consistent with 94% in 2022. However, younger motorists aged 17 to 34 years had lower awareness at 79%. While 66% of respondents correctly identified that CTP insurance covers injuries caused by vehicle accidents, misconceptions persist. Nearly half (46%) mistakenly believed it covers damage to other vehicles (up from 39% in 2022), and 40% thought it includes coverage for property damage (up from 34% in 2022).
The report also found that many new car buyers encountered CTP costs bundled into the “drive-away price” of their vehicle (59%), while only 16% saw the premium itemised separately. This lack of transparency can make it harder for consumers to understand the true cost of CTP insurance and make informed decisions.
Barriers to switching CTP insurers were also identified. A quarter of respondents cited “set and forget” behaviour (setting it up once and then not worrying about it again), 20% believed there was no price difference between insurers, and 12% were unaware they could switch. Price competition remains a key driver for switching, with 51% of respondents saying a $15 price difference would motivate them to change insurers. However, for others, an average saving of $33.46 was needed to consider switching. Beyond price, other factors like discounts on roadside assistance (17%) or gift vouchers (14%) also influenced decisions.
The report touched on choice and questions around potentially changing the existing system. Respondents were provided with information about a proposed approach of having to select their CTP insurer each time registration was renewed (Active Choice). They were asked to indicate if they would prefer the current approach or the proposed Active Choice. 57% of respondents indicated they preferred the current approach and 33% would prefer Active Choice. 10% were unsure.
These findings highlighted the need for more accessible information and simplified processes to encourage greater consumer engagement. One third of new car buyers were not aware that, when purchasing a new car, the buyer is required to select their CTP insurer at purchase time. This is an increase from 2022 survey results, highlighting the continued efforts by MAIC and TMR to remind new car buyers of their ability to choose their CTP insurer is proving affective, however there is an opportunity to explore targeting information directed at car dealerships.
MAIC remains committed to addressing the issues raised in the report by expanding its consumer education initiatives and collaborating with motorists, insurers, car dealers and the general public to improve awareness and engagement. We will continue to explore digital tools to empower motorists with better access to information and insurer comparison options.