Queensland is unable to obtain insurance coverage for the 170,000km of roads in the state.
The ABC reports road damage accounted for almost half of the state's $A6.8 billion disaster repair bill last summer.
Premier Anna Bligh says that if the state government cannot get insurance, federal funding will continue to be needed when roads are wrecked by disasters.
"We couldn't find anyone to do it at any price," she said.
"We have spent $A1 million with a very, very internationally respected insurance broker looking for insurance for our roads. No-one is prepared to insure them.''