motor insurance Australia

[jow104]

I recently sent an email off to aami requesting information on third party motor insurance for my intended visit to Australia later this year (October for upto 6 months). I requested if they would be quite happy to insure a non permanent resident. They replied by email requesting me to complete on line an application form with details of the motor requiring insurance.

This I am unable to do until the arrival in Australia happens because I intend purchasing a vehicle (low cost etc.) and disposing of same on departure.

I have no knowledge of the Australian second hand motor scene so could someone give me an example of a vehicle to enter in the on line application so I can go through the motions of getting a quote. I expect to be looking at the bottom end of the second hand car market with a typical 1600cc saloon vehicle.

[ozwinner]

Look here. (http://www.drive.com.au/homepage.aspx?s_cid=46503&ads=0&gclid=CNKmvvnD4IMCFUdOGAodQVko1g)

Al :p

[DavidG]

Hi
AAMI are as good as any of them.
You can get cover over the phone at the time you purchase a vehicle.
(Cover note).

Bottom end of the market can be from $1000 up.
Think about $2,500 for something that will last a couple of months without trouble.

Vehicle cost does not make as much difference to insurance cost, as driver accident rate, age and number of listed drivers.

[jow104]

Thanks guys. I have now got the quote using a toyota model with aami.

$104 third party
$324 comprehensive. upto $5200.

Must say that's a lot cheaper than insuring in UK.

[ian]

Thanks guys. I have now got the quote using a toyota model with aami.

$104 third party
$324 comprehensive. upto $5200.

Must say that's a lot cheaper than insuring in UK.maybe not.
You're going to be here about six months.
Think of the vehicle as your transport for those six months.
You wont want the hassel of renewing the rego so you'll try to buy a vehicle where the rego expires AFTER you leave the country. Now in Australia a car is supposed to be both registered and INSURED for third party injury — so the third party insurance papers should come with the vehicle.

but it's a different story for property damage. I don't know your driving record, but for me I can't see the point of comprehensive insurance on a $2,500 car. BUT what I would do is take out THIRD PARTY PROPERTY insurance for at least $100k, and maybe a million. You have a crash where the other car's air bag goes off, that's deemed to be "your fault", and you could easily be up for $20+k in repairs. Crash into a shop window and the sky starts looking real close


ian

[jow104]

Thanks Ian, reading your post has been a further education.
So if I purchase a car in Oz. I make sure its registered and that means I have the injury insurance cover with the tax paid?
If I have purchased the car from a private vendor what paperwork and precautions should I take? Bearing in mind I am not an Australian citizen does the cover come with the tax for me?

[ian]

So if I purchase a car in Oz. I make sure its registered and that means I have the injury insurance cover with the tax paid?
If I have purchased the car from a private vendor what paperwork and precautions should I take? Bearing in mind I am not an Australian citizen does the cover come with the tax for me?The primary precaution is that the vehicle is really registered and insured — check for a registration label and the accompanying paperwork. In general the requirements are common across the country but the details differ from state to state with the variables being the state where the vehicle is registered and the state where the vehicle is "normally garaged" — for a visitor this is probably the same (but maybe not if you're going to spend 6 months in one state and you buy an out of state vehicle)
Note that the injury cover is for people injured by the "at fault" driver, if that's you, you're not covered by the compulsory scheme, if it's someone else you are. As far as I know, your country of citizenship is irrelevant.

The following is an edited cut and paste from the web site of the body in NSW which handles vehicle registration http://www.rta.nsw.gov.au/registration/regotransfer/index.html will give you an idea

Buying a vehicle
When you buy or acquire a vehicle that is registered, you will need to transfer the registration into your name within 14 days (if you wait longer you will have to pay a late fee).
You will need to visit a motor registry with the following information:

Proof of your identity .
Proof of acquisition - a receipt for purchase of the vehicle or the certificate of registration completed and signed on the back by the previous registered operator/s.
A completed Application for Transfer form.
You will need to pay a transfer fee and stamp duty (Stamp duty is calculated at 3% of the market value up to $45,000). You may also need to pay additional motor vehicle tax if you have bought your vehicle from someone receiving an RTA concession (such as a pensioner).

for the other states follow the links on this page http://www.maa.nsw.gov.au/default.aspx?MenuID=165

lastly, it's important you complete the paperwork when you dispose of the vehicle as we have owner onus rules for certain traffic offences — so even if you've sold the car, if you haven't completed "the paperwork", it can still be your fault if the car is caught be a speed camera, etc.


ian

[Slow6]

third party is worth the $$ incase you run up the #### of a bmw but dont bother with comprehensive for a 3k car.. akaik the third party you get with rego doesn't cover you for other peoples cars just public property.. but I dont pay much attention so I may be wrong.

[Sturdee]

I recently sent an email off to aami requesting information on third party motor insurance for my intended visit to Australia later this year (October for upto 6 months). I requested if they would be quite happy to insure a non permanent resident. They replied by email requesting me to complete on line an application form with details of the motor requiring insurance.


John, as Iain rightly pointed out 3rd party insurance ( covering injury to all other persons) is included in the registration.

However 3rd party property covers damage to all property ( except your own car ) and is advisable but not compulsory. AAMI is asking details of the vehicle for 3rd party property insurance as the premium they charge varies between different makes and age of the vehicle concerned as well as your driving experience and age.

Recently when I changed over the big Ford Fairmont to a small Ford Festiva I had to pay an additiona $ 50 in premium.:(


Peter.

[jow104]

Many thanks for the education. All tips gratefully received.

[BrisBen]

Hi Woody

In Queensland we have Compulsory Third Party Insurance which is essentially part of the registration fee - I think if you purchase a registered vehicle the third party insurance transfers with the registration (what you pay to have the number plates and drive the car on the road - call it road tax) Comprehensive insurance covers you if you have an accident and cause damage to another car to a certain extent, this is where the term "excess" comes in - you can opt for a large or a small excess which in term varies the amount you pay for the insurance.

For example (these figures are in no way an indicator of what you might pay)- if you choose to pay $500 AUD for six months comprehensive insurance which has a $1000 excess and are involved in an accident that is deemed to be not your fault, you contribute $1000 to the repairs of the vehicle and the insurer pays the rest

If you choose to pay $1000 for the same policy with $ 0 excess the repairs for the same accident would be paid for by the insurer

here is an extract from the Queensland Transport website:

Compulsory Third Party

Queensland operates a common law 'fault' based Compulsory Third Party (CTP) scheme, first introduced in 1936. The scheme provides motor vehicle owners with an insurance policy that covers their unlimited liability for personal injury caused by, through or in connection with the use of the insured motor vehicle in incidents to which the Motor Accident Insurance Act 1994 applies.

For the injured third party it provides access to common law, that is, the injured person has a right to approach a law court to seek monetary compensation from the person 'at fault' for the personal injury and other related losses. As a fault based scheme it requires proof of liability, i.e. the injured party must be able to establish negligence against an owner or driver of a motor vehicle. Consequently, circumstances can arise where, for example, a driver who is wholly at fault in an accident cannot obtain compensation because there is no negligent party against whom a claim can be made.

Oh and just out of interest, if you get caught driving an un-registered vehicle in queensland, they also book you for driving an un-insured vehicle at the same time (amongst other things)

The simple answer I should have written was:

If you buy a registered second hand vehicle in Qld both the registration and third party insurance is transferred to you as the purchaser

[jow104]

How much and how long (6 months only?) for a registration if it has run out on a vehicle I might purchase? 1600cc ish size engine.

Oh by the way what is the age of consent in Oz?:) :) :D :)

[Iain]

CTP rates vary from state to state and location within the state.
In NSW you have a choice of CTP insurers, in Vic you pay the TAC whether you like it or not.
Here a car is registered and insured for a 12 month period, not available for a start/finish date, 3rd party property I believe comes in 6 month blocks if you wish but you pay a premium for the privelege.
My full comprehensive on a 1998 Landcruiser is $360.00 pa for an agreed value of $55k, rego and CTP is $450.00 roughly, but we are country, city prices are higher.
My public liability on the full comp is $20,000,000.00, which I think is almost an industry norm.

[Sturdee]

Here a car is registered and insured for a 12 month period, not available for a start/finish date,.

Unless you have a health care card when it can be renewed for 6 months terms without any penalty and if you have a pension card both the registration and third party fees are discounted to 50 % of the normal fee. This is in Vic but I don't know about other states.

It may be worthwhile to check with Vicroads to see if your own pensioner status is accepted here.

Peter.

[journeyman Mick]

In Queensland 6 or 12 months is available.

Mick

[fxst]

In SA we have the luxury of 3,6,9 or 12 month registration and 3rd party
now you have more (or too much info :D ) John
Pete

[Iain]

Peter, my car is registered in my company name, no such luxury as 6 month rego.

[fxst]

it is over here..........I had the company car regoed as needed and when I was due to get rid of it I put 3 months on it with no probs.probably the only advantage of living in Sth Oz I guess :D

[jow104]

I have fired off a couple of technical questions to the rta in NSW and VICT.
and after reading all those regulations on their web sites I should now be in a position to answer any questions from australian forum member enquirers:rolleyes: :) ;)

[ian]

A couple of things you should be aware of:
Although Australia adopted unleaded fuel in the mid-1980s the standard stuff is pretty low octane stuff compared to fuel in Europe. Higher octane unleaded has really only been widely available in the last few years, so an Australian car with a 1.6l engine is probably equivalent to a European or Pommy car with a 1.3l engine (performance wise)
It can be an expensive hassel to reestablish registration where it has lapsed on an older car.

ian

[jow104]

Thanks again Ian for those gems.

By the way has fuel gone over the $1 a litre in Oz yet?

[ian]

By the way has fuel gone over the $1 a litre in Oz yet?seems to be averaging about $1.20/l at the moment

[Sturdee]

It can be an expensive hassel to reestablish registration where it has lapsed on an older car.

ian

In Vic in order to reregister (or transfer the rego to another person) you only need a Road Worthy Certificate. Not expensive as all vehicles should be road worthy.:D

Of course once it is registered you'll never need a RWC as there is no annual testing of vehicles on registration renewal.

Peter.

[jow104]

So, I don't buy a car unless it hasd some registration documents in force .

What if its a pensioner car and needs re-registering does that need RWC to be obtained again?

[Sturdee]

What if its a pensioner car and needs re-registering does that need RWC to be obtained again?


Yes, any transfer in Vic needs a RWC, and if the registration fee was the reduced pensioner fee then, unless the purchaser also qualifies, the prorata balance of the waived fee is also payable. In other words the reduced fee is a concession to the pensioner owner but doesn't stay with the car.

John, I went through this process last week and I also asked all these strange questions to the lovely lady that fixed it all up for me at VicRoads.:D


Peter.

[Iain]

Then there is the transfer/stamp duty fee, as I haven't bought a second hand vehicle for a number of years now I have no idea what they are.
If you buy the car from a dealer all this should be taken care of (at your cost though) and a RWC should be supplied.
Are you coming to Vic or starting in NSW?
The reason I ask is because registration is much higher in NSW and if you take up residence in Vic you are required to re register the vehicle (after a period of 3 months I think).

[echnidna]

As well as the motor reg (which should not be an issue if you get a car already registered) you should consider RACV membership though you may be entitled to some services if you are in the UK motoring organisation.

The RACV has emergency breakdown service for members reciprocal through all the aussie states. They also have a car insurance arm.

[ian]

The key points seem to be:

when you buy a registered 2nd hand car in Oz the registration and 3rd party injury insurance cover transfers to you

you have to pay a fee (plus a tax) to transfer the registration to yourself

the details of the transfer process differ depending upon whether you're in NSW, Victoria or Queensland (I'm assuming you'll fly into Brisbane, Melbourne or Sydney and buy the car in the arrival city), some states require a road worthiness certificate upon transfer, in others the previous owner will have satisfied the road worthiness requirements when the registration was last renewed.

BUT one of your risks is that, the reason the car is for sale could be that the cost of satisfying the road worthiness requirements is more than the car is worth.

What is worth considering is buying a cheap new car, and then selling it after 6 months. Might be less hassel and at $11,990, incl rego etc (I wasn't paying a lot of attention, but I think that was the price on the TV tonight) it might be a reasonable deal for you


ian

[jow104]

Nice thought Ian.:)

[Iain]

Thats a good point, Kia, Hyundai or Echo all under $15k driveaway, and after 6 months should have a reasonable re sale value.
Someone on the board could be interested.

[jow104]

How about a couple of horses Iain?:) ;)

Will make a commitment re a new car perhaps nearer the time.

[jow104]

Received an official communication from a Victorian Road Reg office to this effect;

The Victorian Roadworthy Certificate needs to be dated within 30 days of
the transfer and needs to be an original to be valid.

Complicates things a bit for me.

[ozwinner]

Gees JJ, just buy an old clapper to do your running around in.
No Rego.
No Insurance.

Whats the worst that can happen if Dan pulls you over?
By the time it gets serious youll be on the plane back home.

Unless they clap you in irons and send you to Port Arthur.

Al :D

[jow104]

Yeah as long as I don't bump into you.:(

[Iain]

The Victorian Roadworthy Certificate needs to be dated within 30 days of
the transfer and needs to be an original to be valid.

Complicates things a bit for me.
A dealer will offer a certificate upon sale, they don't write them up prior because they have to pay for them.
What is the complication, you have a prescribed period of time to effect the transfer of the vehicle.
If it is a new vehicle it is a different matter as the dealer does everything on your behalf, and there is no transfer fee like on a secondhand vehicle.
So, a $15k Hyundai brand new would work out cheaper than a $14k secondhand 3 year old Corolla, and have a better resale value after 6 months.

[jow104]

Yes Iain, that seems to be the route to take and perhaps avoid buying privately and having to get a RWC myself on the really cheapo.