Please Explain.

[Rica1122]

Is it a great idea to have car insurance even if you don't own a car? If yes, Please explain.

 

[barry1010]

It's essential when you drive a car on the public highway. That is the only time you have any need for car insurance.

You won't be able to hire a car without pay for insurance.

If you are self employed and have to drive other people's cars in your job you will need insurance.

It is possible to get very short term insurance to drive a car that you don't own if you only drive occasionally.

Otherwise it would be hugely expensive and totally unnecessary to insure yourself to drive any car. 

However, some people do choose to add their name to someone else's insurance policy to lower the cost of the insurance.  A young driver can save a lot of money by having a parent as a named driver.

[1ozzy]

Your insurance system must be very different to ours.

Downunder it's the responsibility of the vehicle owner to ensure it's insured.

Not the driver, they just need to be licensed to drive the vehicle.

[barry1010]

Ozzy, can you just hop in to anyone's car and drive? 

[douglas9401]

I did with my sister-in-laws. Very civilised country.

[barry1010]

Douglas, I could buy car insurance that specifies any driver but that is not standard and costs more.  I have added other people as named drivers for a week or two at no cost.

Does every insurance company in Australia cover any driver as standard?

[1ozzy]

//Does every insurance company in Australia cover any driver as standard?//

No, young and inexperienced drivers cost more, as do bad drivers to insure, but it's the owner of the vehicle that decides.

//Is it a great idea to have car insurance even if you don't own a car?//

Downunder you can't have car insurance if you don't own a car.

[douglas9401]

I don't know.

[barry1010]

Thanks, Ozzy.  Curious now as to the average cost of fully comp insurance in Australia.

[douglas9401]

https://www.news.com.au/finance/money/costs/research-finds-one-in-two-drivers-facing-car-insurance-hikes-as-cost-of-living-crisis-explodes/news-story/fcc36fce4e875da6228c9eabc067cc1e

[1ozzy]

Fully comp insurance is a choice.

Because of the age and kilometres travelled by my old beast I've opted for third party damage only.

We pay a levy on our rego fees to cover damage to people.

If my car gets stolen or I trash it, bad luck to me, all other damages are covered.

And if anyone is desperate enough to steal it, good luck🤗

[Hopkirk]

Same in the UK Ozzy, the vehicle owner has to ensure the car is insured.

[1ozzy]

If that's the case, I don't understand the OP and some of the answers, silly me.

[barry1010]

Interesting point in UK law.  If I haven't insured my car somebody else can drive it if they are insured to drive any vehicle.

There is every chance they will be stopped as the ANPR will flag up the car as uninsured but producing proof of insurance will be an end of the matter.

I would be in trouble if he parked it on the public highway and got out, though, as it would no longer be covered by his insurance.

Lots of people are insured to drive cars they don't own.  My neighbour is paraplegic and is the registered keeper (along with Motability) of his motability car but his parents are insured to drive it.

[bhg481]

barry - I think you are wrong on that one. The car must be insured to be on a public road AND the driver must be insured to drive that particular car. I have seen instances on "Police Intercepter" type programmes where cars have been stopped and the driver prosecuted for driving an uninsured vehicle even though their own policy covered them to drive any car.

[Old_Geezer]

Doesn't NCB run out after a while of not being insured ?

[Peter Pedant]

yeah I am a registered keeper

and someone else is on the insurance ( too)

[naomi24]

My insurance covers me to drive any car - but the owner of any car I drive must insure the car.

[bhg481]

OG - yes, most insurance companies honour NCD entitlement for 2 years after a policy is closed so, if you take out a new policy within that period, they will give you a discount.

[bhg481]

It's worth mentioning that, if your policy covers you to drive any car, the cover is only thlird party on that vehicle so, if you dinge it, you pay; only damage to the other car is covered.

[barry1010]

bhg, I know I'm right but there must be nothing to suggest that the driver owns the car even if it is registered in somebody else's name (the registered keeper is not proof of ownership).