Car insurance in Oz - is it like the UK or more like Europe?

Car insurance in Oz - is it like the UK or more like Europe?

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Discussion

Aliblahblah

Original Poster:

42 posts

108 months

Tuesday 13th November 2018
quotequote all
I'm going over to Oz in late Dec / early Jan and wondering whether to rent a car out there (will be in a Melbourne suburb) or whether I can drive my mate's car.

Now, in the UK, to drive a car legally, your name must be on the insurance policy as a main or named driver, or, in some cases, your policy might allow you to drive another person's car with their permission on a 3rd party only basis.

In some Euro states eg. Spain, my understanding is that the car is insured and can be driven pretty much by anyone.

What is it in Oz?

AW111

9,674 posts

140 months

Tuesday 13th November 2018
quotequote all
3rd party personal cover is paid as part of the registration, so you can legally drive without any other cover, but you would be on the hook for any property damage you cause. This is not only any car you hit : knocking over a lamp-post is costly.
Most standard insurance policies cover all drivers for 3rd party property, but may have an increased excess for eg young drivers.

My "classic" in insured for named drivers - anyone not on the list is covered, but with a pretty high excess.
My other car has 3rd party only, for everyone. If I have an own-fault crash, I'll repair it or scrap it, depending how bad.

Aliblahblah

Original Poster:

42 posts

108 months

Tuesday 13th November 2018
quotequote all
Thank you very much for your help! smile

motomk

2,166 posts

251 months

Wednesday 14th November 2018
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A few years ago, my brother visited from the UK, I phoned my insurance company about him driving one of my cars. They wanted to know if he had a driving license, and noted him on the policy. We did get caught at one stage as he didn't have his license on him when we driving. Said he didnt need to do that in the UK. I don't think you do in Victoria either, however it is strongly recommended you do carry it whilst driving. We were visiting Point Cook and they insisted I drive the car as I had my license on me.
hehttps://www.vicroads.vic.gov.au/licences/renew-replace-or-update/new-to-victoria/overseas-drivers

Bibbs

3,733 posts

217 months

Wednesday 14th November 2018
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I wanted to add my brother in law to my insurance (Iranian / International drivers licence).

They asked if he was over 25, and if so, he could drive it unnamed. If under 25 the excess was greater, under 21 they wanted a name.

This was in Perth, on a modded HSV GTS.

captain_cynic

13,332 posts

102 months

Thursday 15th November 2018
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Aliblahblah said:
I'm going over to Oz in late Dec / early Jan and wondering whether to rent a car out there (will be in a Melbourne suburb) or whether I can drive my mate's car.

Now, in the UK, to drive a car legally, your name must be on the insurance policy as a main or named driver, or, in some cases, your policy might allow you to drive another person's car with their permission on a 3rd party only basis.

In some Euro states eg. Spain, my understanding is that the car is insured and can be driven pretty much by anyone.

What is it in Oz?
In my experience, far less.

Of course it depends on where you live and what you drive however in my old suburb in Perth, the BMW M240i I drive here would be A$450 (£255) to insure, here it's £680. The kicker for that is that would be an agreed value policy for more than the car is worth in the UK (Australian's are bent over by the European manufacturers something shocking).

If you're going to get a cheap $1000 junker, I'd get 3rd party only which covers you for anything you hit. You're agreeing at that point in an at fault accident you're not going to get any money for your car, but if it's $1000, you can easily eat that but you don't want know how much it costs if you hit a Mercedes (did I mention Aussies are bent over by European manufacturers).

As for anyone driving. Depends on your policy. Some insurers offer "open driver policies" as mine did (RAC WA) which means any driver can drive the car (but it is your responsibility to ensure they are legally permitted to drive the car). Generally fair use clauses limit this to a maximum of 5% of the KM driven before requiring you to add them as a named driver on the policy. Other providers have age restrictions as per Bibbs post and some do not offer them at all... Erm... as always, read the policy documents smile

Insurance is far better regulated in Australia, so less abusive than it is here.

unzippy

67 posts

245 months

Tuesday 11th December 2018
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[quote=motomk I don't think you do in Victoria either
[/quote]

Failing to produce your licence upon request while on the road is illegal in all states and, yes, you could be fined on the spot in some states.

New South Wales Roads & Maritime Services has a clear stance on driving without a licence: get caught in the act and you'll cop a $110 fine. Likewise, the ACT government's extensive traffic infringement document states you'll risk a $193 fine if you fail to produce your licence upon request.

In Tasmania the penalties are graded according to severity; according to the Tasmanian Transport's traffic offences list, you're looking at a $79.50 fine for driving without your regular Australian driver's licence or foreign driver's licence. But if you're driving without carrying your restricted driver's licence, then you're facing a fine of almost $200. And while the Northern Territory government's website doesn't specify what the exact penalties are, its page on driver's licence rules clearly states that it's illegal to drive without carrying your licence.

According to VicRoads information on fines and penalties, you could be set back $159 for failing to produce your licence or learner's permit upon request — but there's also a bit of leniency in Victoria, as you can avoid a fine by bringing your licence to a police station within seven days of failing to produce it on the road. There's a similar system in place in Queensland and South Australia; according to the QLD government's transport authority and the Legal Services Commission of South Australia, in both QLD and SA it's illegal to drive without carrying your licence if you're a learner or on your Ps. But if you're driving on a full licence, you may be given 48 hours to take your licence to a police station before receiving a penalty.