Chances are, you’ve heard the phrase “car accident compensation” before. Yet for many Australian drivers, the details remain fuzzy until the unexpected happens. Perhaps you were rear-ended on the school run and sustained an injury, or a family member has been hurt in a crash – and you’re suddenly facing medical bills and time off work.
Getting injured in a car accident is an awful experience – but sadly, not an uncommon one. From 2023 to 2024, car accident injury claim payments, including legal costs and loss of income, amounted to more than $177 million in Queensland alone.1
Luckily, Australia has a car accident compensation system, which exists to help relieve the financial strain for those injured in a car accident. But how does car injury compensation work? Are you eligible if you’re at fault? And can you claim compensation for a car accident if you don’t have car insurance?
Car accident compensation is an important part of Australia’s road safety set-up, but it’s not always easy to unpack. This guide will explain how car crash compensation works under the Compulsory Third Party (CTP) system, who can claim it, how long the process usually takes, and what every driver should know – whether you are making a claim or simply want to understand how the system supports you.
What is car accident compensation – and who can claim it?
Car accident compensation helps cover the financial and personal impacts of an injury caused by a motor vehicle accident and may apply to drivers, passengers, pedestrians or cyclists.2 It’s usually paid through the relevant state or territory CTP insurer or authority. In fault-based states, such as Queensland, it often matters who caused the accident. In no-fault jurisdictions – including New South Wales and Victoria – benefits may be available regardless of who was to blame.3 We’ll go into this in more detail a little later.
What is the role of CTP in car accident compensation?
In Australia, every registered vehicle must have Compulsory Third Party (CTP) insurance. It goes by different names depending on where you live – such as CTP, Green Slip, MAI insurance or Motor Injury Insurance – but its purpose is the same: CTP covers you for car accident compensation claims if you’re involved in an incident in which someone is injured or killed and also allows you to access help if you’re injured yourself.4
Car accident compensation claims can run into the millions, so CTP is there to help prevent you from being held personally liable for paying out a costly claim.5 It also ensures people injured in a car accident can access financial support, although the level of cover and eligibility can differ depending on the rules in each state or territory.5
What do car injury compensation claims cover?
Depending on your specific injuries and what your state or territory’s CTP scheme covers, a successful car injury compensation claim may typically cover the following expenses:6
- Medical treatment
- Rehabilitation
- Loss of past or future income
- Cost of support or care services
- General damages (pain and suffering)
- Reasonable funeral costs
- Financial loss arising from the death of an income provider.6
What isn’t covered by car accident compensation claims?
Put simply, CTP covers people, not property or cars, so it won’t cover damage to yours or someone else’s vehicle, or any accidental property damage sustained during the incident. You’ll need to explore other car insurance options for that.3
Car injury compensation: Your frequently asked questions
To help you get a clearer understanding of this important topic, we’ve answered some common questions about car crash compensation below.
How long do I have to claim motor vehicle accident compensation?
How long after a crash you can lodge a compensation claim for an accident will depend on your state or territory.
For example, a claim for car accident compensation in Perth can be submitted up to three years after the accident, while claims for car accident compensation in QLD must be made within nine months.
Check with the relevant authority to find out how long you have to claim or refer to our country-wide breakdown in this comprehensive guide on what to do if you’re injured in a car accident in Australia.
Can I settle car accident compensation claims without a lawyer?
According to the Motor Accident Insurance Commission (MAIC), you don’t usually need a lawyer to settle a car insurance claim, as you can often deal directly with the insurer.7
However, it may be a good idea to seek legal advice if you have a complex or disputed claim. MAIC also recommends you discuss legal fees – and whether you might be able to claim legal costs from the insurer – before you engage a lawyer.7
Can I make car accident compensation claims without insurance?
Thankfully, CTP is compulsory for every registered driver on the road. This means that any driver who meets the eligibility criteria in their state or territory may submit a claim for car accident injury compensation under CTP insurance, even if they’re otherwise uninsured.4
If you’re considering additional insurance for your car on top of CTP cover, exactly what you’re covered for in a car accident will depend on your policy. Generally, Third Party Property Only and Third Party Fire & Theft policies will only cover damage to other vehicles and property. If cover for your own car is important to you, you might wish to consider Comprehensive car insurance.8
How is car crash compensation calculated?
Each car accident injury claim is assessed individually. Some places, such as Queensland 6 and South Australia,9 use an Injury Scale Value (ISV) system to assign an injury severity score between zero and 100, but laws and assessment methods vary across Australia. However, the compensation amount will depend on the particular circumstances, such as the type and extent of your injury.6
To find out what you may be eligible to claim, you can talk to your insurer, or legal representative if you have one.6
How long does a claim take to process?
CTP settlement times vary but simple claims involving minor injuries generally settle faster than claims involving severe injuries, or in cases where it’s unclear who was at fault.10
Settlement of a successful claim typically happens after:10
- The insurer has determined liability
- Your injuries are stable
- The total impact of your injuries is known.10
The timeframe for determining liability also varies between states and territories and insurers. For example, in NSW, an insurer must make a decision on liability for your CTP claim within four weeks,11 while insurers in Queensland must decide within six months.12
You can check with the relevant authority for an indication of how long your claim might take to process.
How is car accident compensation paid out?
You might receive your CTP compensation payout as either a lump sum or through periodic payments. The type of payment you’ll receive will be specified in your settlement agreement.13
How to claim car accident compensation from your insurer
The exact process for claiming compensation for a car accident may vary depending on your location and insurer, but recommended steps generally include:
- Report the crash to police. You may need a report number to lodge a claim.14
- Gather important details, such as the location and time of the accident, witness contact information15 and insurance details of the at-fault driver.14
- Prepare supporting documentation, such as medical certificates, identity documentation14 and bank details.15
- Complete a claim form and lodge it with the relevant state or territory authority or CTP insurer.14
Youi’s car accident checklist can be a helpful tool to remember what steps to take immediately after a crash. You can download a copy to your phone or keep a printed version in your glove box, so it’s always on hand if you need it.
How to claim compensation for a car accident by state or territory
Each state and territory manages CTP differently. You can use this breakdown to help you find out more about motor vehicle accident compensation where you live, and whether your state or territory CTP covers at-fault drivers.
New South Wales
- CTP regulator: State Insurance Regulatory Authority (SIRA)
- At-fault: At-fault drivers in NSW can claim CTP3
- How to claim: Complete SIRA’s application for personal injury benefits form, then lodge your claim for car crash compensation with the Green Slip insurer of the at-fault vehicle or via CTP Assist on 1300 656 919.11
Victoria
- CTP regulator: Transport Accident Commission (TAC)
- At-fault: At-fault drivers in Victoria can claim CTP3
- How to claim: Submit your car accident personal injury claim via TAC’s online lodgement form or by phone on 1300 654 329.15
Queensland
- CTP regulator: Motor Accident Insurance Commission (MAIC)
- At-fault: At-fault drivers cannot claim car accident compensation in QLD.3 They may be able to claim a reduced amount if partially at fault16
- How to claim: Complete the relevant claim form from the MAIC website, then lodge with supporting evidence to the insurer of the at-fault vehicle.14
Western Australia
- CTP regulator: Insurance Commission of Western Australia (ICWA)
- At-fault: At-fault drivers cannot claim car accident compensation in Perth or anywhere else in WA, but there may be some exceptions for catastrophic injuries3
- How to claim: Lodge your car accident injury compensation claim by reporting the crash online to ICWA at crashreport.com.au.17
South Australia
- CTP regulator: CTP Insurance Regulator
- At-fault: At-fault drivers cannot claim CTP in SA, but claims may be accepted where two drivers are equally at fault.18
- How to claim: Login online and complete an injury claim form or fatality claim form, then send these to the insurer of the at-fault car.19
Tasmania
- CTP regulator: Motor Accident Insurance Board (MAIB)
- At-fault: At-fault drivers in Tasmania can claim CTP3
- How to claim: Lodge a claim via the application for benefits form on MAIB website.20
Australian Capital Territory
- CTP regulator: Motor Accident Injuries Commission (MAI)
- At-fault: At-fault drivers in the Australian Capital Territory can claim CTP3
- How to claim: Complete the relevant MAI claim form, then send it to the insurer of the vehicle most at fault.21
Northern Territory
- CTP regulator: Motor Accidents Compensation Commission (MACC)
- At-fault: At-fault drivers in the Northern Territory can claim CTP3
- How to claim: Complete a MAC scheme claim form, then submit it via the email or postal address on the form.22
Where to find help and advice
If you want to know more about how to claim compensation for a car accident, you can contact your local CTP regulator. You can also access free legal advice from the following services:
- Legal Aid New South Wales
- Victoria Legal Aid
- Legal Aid Queensland
- Legal Aid Western Australia
- Legal Services Commission South Australia
- Tasmania Legal Aid
- Legal Aid ACT
- Legal Aid NT
So, if you or a loved one is injured in a car accident, motor vehicle accident compensation might be available to help you get back on your feet sooner. And if you’re considering broader cover, why not explore our you-shaped car insurance options today to find out if they’re a right fit for you.
1 Source: Qld Government – Claim payments on finalised claims—motor accident personal injury register, August 2025
2 Source: NSW Government – A guide for people injured in motor crash in NSW, March 2025
3 Source: Canstar – CTP/Greenslip Insurance, November 2025
4 Source: Canstar – What happens when you have a car accident without insurance?, April 2025
5 Source: MAIC – About CTP Insurance, November 2024
6 Source: MAIC – What you can claim, October 2025
7 Source: MAIC – About legal advice, August 2025
8 Source: Canstar – Different types of car insurance explained, January 2025
9 Source: CTP Insurance Regulator – ISV medical assessments
10 Source: MAIC – Frequently asked claims questions
11 Source: NSW Government – For individuals and their families, December 2024
12 Source: MAIC – After you lodge your claim, August 2022
13 Source: Australian Taxation Office – Personal injury compensation structured settlements, June 2025
14 Source: MAIC – How to claim
15 Source: Transport Accident Commission – How to make a claim - when a person is injured
16 Source: MAIC – All about claims, December 2024
17 Source: Insurance Commission of Western Australia – How to claim
18 Source: CTP Insurance Regulator – Information for motor vehicle owners and drivers
19 Source: CTP Insurance Regulator – The claim process
20 Source: MAIB – Lodge a claim with MAIB
21 Source: Motor Accident Injuries Commission – Forms
22 Source: MACC – Personal Injury Claim Form
