Insurance in mums name?

buddy92 · 10-07-2013, 10:05 PM

Hi all.

Alot of people are telling me I can insure my car in my mother's name? I'm only 20 and have lost my license for no P plate for 1 week so that made my insurance sky rocket.

Although I've read that if I do that, I make a claim it might get refused since I own it?

Sent from my HTC One using Tapatalk 2

Smoke Pursuit · 10-07-2013, 10:07 PM

Ergh... I don't think it works like that.

Whos name is it registered in?

Whos name was it purchased in?

Trust me if you write it off the insurance company will be asking you plenty of questions.

MrEL · 10-07-2013, 10:07 PM

If the car is registered in your name it gets insured in your name.

XR6T0Y · 10-07-2013, 10:07 PM

You still need to be a named driver (2nd - 3rd, whatever). Which will put the price up. If not, and you are at fault in and accident (or not even needing to be at fault) it will be either void, or over the top expensive (this is how it was explained to me the other day when I was taken off one of the parents cars)

KIWI-1 · 10-07-2013, 10:10 PM

...and if ur 20 you most probably would need to be a named driver and disclose the disqualification whoever owned it.
edit
I was a bit slow to type so repeated XR6TOY above.

monte.b · 10-07-2013, 10:26 PM

If the car is registed in your name ,it must be insured in your name ,otherwise they will void the insurance if you have a crash ,however if you sell the car to your mom and transfer the rego ,there is no reason you cant drive it ,but most companies have a $1000 excess on you if you are driving your mothers car and crash it ,well thats how it is on my nrma one is anyway ,so you have to figure out which is the best for you ,I guess the other way is third party property ,fire and theft ,which would cover the other party in a crash ,but not your car ,good luck with it

buddy92 · 10-07-2013, 10:28 PM

I thought that to, was just checking

thanks guys

Sent from my HTC One using Tapatalk 2

graham7773 · 10-07-2013, 10:43 PM

Just by the way, with 3rd party some of the insurance companies will cover your car if you are not at fault. They extract cost of repairs from the at fault party or their insurance company.

Pepscobra · 10-07-2013, 10:46 PM

Best thing to do is buy yourself a cheap low risk bunky and just get 3rd party insurance for the short term.
Sure it's not cool, but it will save you heaps.

Bearman · 11-07-2013, 04:46 PM

Quote:

Originally Posted by Pepscobra

Best thing to do is buy yourself a cheap low risk bunky and just get 3rd party insurance for the short term.
Sure it's not cool, but it will save you heaps.

This is great advice.

Our youngest son was in the same situation. His car is registered in his Mum's name, insured in her name with him as a nominated driver. Car is stock as a rock, all mods are banned and he has to behave himself until he's off his P plates. Any unauthorised (ie without parental permission) mods and any misbehaviour on the road will see his car taken off him.

And he knows we'll follow through.....

All's good so far.

xisled · 11-07-2013, 09:59 AM

If we are talking about fully comp insurance or Third party property damage, there is no law to say that the registered owner has to have the car insured under their name.

So legally the car can be insured under anyone's name. The insurance company will be fine with it being insured under your mums name and you being the registered owner. Unless the policy specifically states that the registered owner needs to be the insured owner.

It is very common for a car not to be insured to the registered owner.

Insurance companies will not ask 50 million questions about it either if they need to pay out.

The only problem you may have, is if you are not listed on the policy and you drive the car and have an accident. If you are concerned you will not be covered, call the insurance company with questions. Also you can read the Insurance company PDS, it will give you the information to.

But to your first question, that everyone seems to have given you an incorrect answer. The registered owner does not have to be the insured owner.

KIWI-1 · 11-07-2013, 10:26 AM

Quote:

Originally Posted by xisled

If we are talking about fully comp insurance or Third party property damage, there is no law to say that the registered owner has to have the car insured under their name.

So legally the car can be insured under anyone's name. The insurance company will be fine with it being insured under your mums name and you being the registered owner. Unless the policy specifically states that the registered owner needs to be the insured owner.

It is very common for a car not to be insured to the registered owner.

Insurance companies will not ask 50 million questions about it either if they need to pay out.

The only problem you may have, is if you are not listed on the policy and you drive the car and have an accident. If you are concerned you will not be covered, call the insurance company with questions. Also you can read the Insurance company PDS, it will give you the information to.

But to your first question, that everyone seems to have given you an incorrect answer. The registered owner does not have to be the insured owner.

Correct, doesn't have to be in the owner's name. Can even be in joint names. Most of our cars have been owned by my wife, but insured in both names so I could retain my no claim bonus. Our <25 children are always named on our policies for the same reason.

Correct, the difference between naming and not naming can be cover and/or the excess. Here's the wording from Shannons:
"The young driver excess will be applied in addition to the basic excess and you will be required to pay it to us, if the person driving at the time of the loss or damage is under the age of 25. The young driver excess will differ depending on whether the driver is listed on your certificate. The young driver excesses are shown on your certificate."

If you must have comprehensive insurance, I'd be ringing someone like Shannons, explaining the situation honestly, and looking at the options. Depends how harshly they view not displaying P-plates.

**Silver Ghia** · 11-07-2013, 10:39 AM

Quote:

Originally Posted by KIWI-1

If you must have comprehensive insurance, I'd be ringing someone like Shannons, explaining the situation honestly, and looking at the options. Depends how harshly they view not displaying P-plates.

Would be a waste of time ringing Shannons. They aren't into daily driven cars, they generally only insure them when the owner also has collector/hobby/classic cars. Even then the premiums they charge for daily drivers is quite expensive these days. I moved away from them last year for that reason.

Spurious · 11-07-2013, 11:08 AM

Quote:

Originally Posted by Silver Ghia

Would be a waste of time ringing Shannons. They aren't into daily driven cars, they generally only insure them when the owner also has collector/hobby/classic cars. Even then the premiums they charge for daily drivers is quite expensive these days. I moved away from them last year for that reason.

Hogwash! Shannons don't have a problem insuring daily drives, even those used for part or all business use. I had my '85 XF covered for some 4 years & they were cheaper than most other insurers, about $35-$38 p/m although I was 27 when I switched to them. That was for 5K agreed value comprehensive cover including any tools or machinery in the vehicle at the time of an accident I only changed providers after moving to Tas 'cause I wanted a local mob to deal with. There's plenty of insurers out there so do your homework & you should get a good deal. Not displaying P's is thoughtless but not a big deal. Find an insurer who will understand this, & always get the windscreen option....I havn't paid for a new one in 10 years ( had 3 newy's across 2 vehicles)

**Silver Ghia** · 11-07-2013, 11:26 AM

Quote:

Originally Posted by FlivverFord

Hogwash! Shannons don't have a problem insuring daily drives, even those used for part or all business use. I had my '85 XF covered for some 4 years & they were cheaper than most other insurers, about $35-$38 p/m although I was 27 when I switched to them. That was for 5K agreed value comprehensive cover including any tools or machinery in the vehicle at the time of an accident I only changed providers after moving to Tas 'cause I wanted a local mob to deal with.

It appears you have not had recent experience with them, which is quite different to how they were. I was with them for about 20 years, I had very good experience with them as well until later last year.

But back on topic, Buddy should ring around and should keep the insurance policy in his own name. Disclosing the offence(s) is essential when discussing with the insurance advisor. Also modifications to his car.

And remembering that cheaper insurance policies may not necessarily be so good when a claim is made.

KIWI-1 · 11-07-2013, 11:27 AM

Quote:

Originally Posted by FlivverFord

Hogwash! Shannons don't have a problem insuring daily drives, even those used for part or all business use.

Yep, I have daily drive, limited use, and laid-up vehicles with them.

Quote:

Originally Posted by FlivverFord

There's plenty of insurers out there so do your homework & you should get a good deal. Not displaying P's is thoughtless but not a big deal.

+1

FGII-XR6 · 11-07-2013, 10:50 AM

yes this is correct but there are still limiting factors.

most have a question " have you or any regular driver had insurance refused cancelled or had conditions imposed ( this can include premium increases due to history)
have you or any regular driver had their licence suspended or cancelled in the last 5 years.
you must list at fault accidents for listed drivers
there will be a history of you being insured with that car and it subsequently being insured by your mother despite no ownership change which could ring alarm bells
the big one is "duty of disclosure" is there anything that any reasonable person would expect the insurer would need to know .

bear in mind if you get caught out doing this to get cheap insurance and your actions are deemed fraudulent by the insurance company both you and your mother will be un insurable for 5 years. if you make a claim on a policy they consider fraudulent they may refer the matter to the police resulting in criminal charges for you and your mother.
is it really worth it to save some money? you pay more because your record says you are a risk I pay less because I am not a major risk. Why should you get cheap insurance when you don't deserve it? improve your record , behave and your rates will come down

Quote:

Originally Posted by xisled

If we are talking about fully comp insurance or Third party property damage, there is no law to say that the registered owner has to have the car insured under their name.

So legally the car can be insured under anyone's name. The insurance company will be fine with it being insured under your mums name and you being the registered owner. Unless the policy specifically states that the registered owner needs to be the insured owner.

It is very common for a car not to be insured to the registered owner.

Insurance companies will not ask 50 million questions about it either if they need to pay out.

The only problem you may have, is if you are not listed on the policy and you drive the car and have an accident. If you are concerned you will not be covered, call the insurance company with questions. Also you can read the Insurance company PDS, it will give you the information to.

But to your first question, that everyone seems to have given you an incorrect answer. The registered owner does not have to be the insured owner.

KIWI-1 · 11-07-2013, 11:00 AM

Quote:

Originally Posted by au3xr6

bear in mind if you get caught out doing this to get cheap insurance and your actions are deemed fraudulent by the insurance company both you and your mother will be un insurable for 5 years. if you make a claim on a policy they consider fraudulent they may refer the matter to the police resulting in criminal charges for you and your mother.

You may also need to disclose the fraudulent behaviour when applying for jobs, it will also appear on your National Police check.

Crazy Dazz · 13-07-2013, 02:00 PM

Quote:

Originally Posted by au3xr6

bear in mind if you get caught out doing this to get cheap insurance and your actions are deemed fraudulent by the insurance company both you and your mother will be un insurable for 5 years. if you make a claim on a policy they consider fraudulent they may refer the matter to the police resulting in criminal charges for you and your mother.

Quote:

Originally Posted by KIWI-1

You may also need to disclose the fraudulent behaviour when applying for jobs, it will also appear on your National Police check.

Yes, and you will get genital warts, your balls will shrivel up, and your pecker will fall off.

EBII Fairmont · 11-07-2013, 05:19 PM

Quote:

Originally Posted by xisled

If we are talking about fully comp insurance or Third party property damage, there is no law to say that the registered owner has to have the car insured under their name.

So legally the car can be insured under anyone's name. The insurance company will be fine with it being insured under your mums name and you being the registered owner. Unless the policy specifically states that the registered owner needs to be the insured owner.

It is very common for a car not to be insured to the registered owner.

Insurance companies will not ask 50 million questions about it either if they need to pay out.

The only problem you may have, is if you are not listed on the policy and you drive the car and have an accident. If you are concerned you will not be covered, call the insurance company with questions. Also you can read the Insurance company PDS, it will give you the information to.

But to your first question, that everyone seems to have given you an incorrect answer. The registered owner does not have to be the insured owner.

I did this with my car when I gave it to my dad. Just changed the name on the insurance policy and the car is still registered to myself. Insurance doesn't care if the car is registered to myself or father and I am not going to go pay a mechanic for a roadworthy and vicroads for a transfer. Waste of time and money.

a-total-tool · 11-07-2013, 11:15 AM

There's no point in having the car insured in someone else's name with you as a nominated driver. I looked into this when I was a P plater. The premium was still the same. The call centre rep said that they will base any premium on the highest risk driver, regardless of who owns the vehicle.

As for the premium increase, not all insurers are like this. Again as a P plater, I lost my licence for 3 months - excess demerit points. When I got my licence back, I told my insurer. My premium did not go up, but a "Special excess of $1000 would apply if the person at fault is <my name>" appeared on my next renewal. That $1000 was on top of the standard and age excess that would apply. It stayed there for 2 or 3 years (I can't remember).

K93George · 11-07-2013, 05:25 PM

This obviously varies with each insurance company and you should be completely open with them and explain what it is you want. Carefully read the PDS!

In my case the FG is insured on my mothers policy but I own the car, what that means is, it is up to her to pay the insurance if she wants the car insured. Obviously I pay it. In fact, the car is still insured if a driver not on the policy drives it, you just pay a substantial amount of excess in the event of an at fault claim. Now if I drive the car regularly I must be noted down as a main driver or the insurance is void.

The insurance is drastically cheaper as the discounts my mother gets on her policy are applied but when I am on the policy it costs more.

To put the cost into prospective, the insurance would cost $3500 per year under my name alone. $2200 under my mothers policy and I a nominated driver.

The fraud begins when you put the car under your mothers policy with only her noted to keep the insurance $ down ($600 for the FG with AAMI). You can technically drive the car if you aren't a main driver and be covered (for example if you drove your uncles car on a random night because he was drunk), if you drive the car regularly and go down this route you risk voiding your insurance.

Some interesting points with AAMI and my circumstances, ANY exhaust modification = $500 extra per year.
Finance = $300 extra per year.
It is entirely dependent on age and years driving, if I was 50 the exhaust would add $30, and just about nothing with finance as well.

thejet · 11-07-2013, 08:46 PM

Its all good till you have an accident, then the game starts..

Had a mate xpolice and now a insurance investigator the insurance company sends him to chat and follow up with neighbours/work colleges etc etc.To establish how often and who drives the vehicle... So i would be cautious..

Just my 2 cents worth...

eyes87 · 12-07-2013, 06:53 AM

Shannon's won't cover you. You've lost your license.

monte.b · 12-07-2013, 10:10 PM

Well it seems that ive been corrected ,however ill tell you a little story ,and this is fact. I was in charge of a yard on the gold coast where we built steel trawlers ,now one windy day we painted one with an airless spray ,with 2 pac and we oversprayed about 20 local cars ,well my boss being the good bloke he was ,got 19 of them cleaned up and polished ,the owners were very happy with result ,but one little smart *** girl decided she wanted a new paint job ,so she made a claim on her insurance ,now my boss just got his back up and told her to get stuffed and handed the problem to his solicitor ,so on and on it went ,now his solicitor found out the car was regoed in the girls name but the car was in fact insured in her mothers name so he put this to her insurance company ,they dropped the claim and ran like the dogs they are ,she never got her new paint job and never got it cleaned up and polished ,it was a new black car with very large white overspray spots on it ,silly girl

MFP508 · 12-07-2013, 10:39 PM

really simple
you bought it..you registered it..you own it..you insure it
if youre worried about high excess payable for an at fault accident, dont drive like a tool and you wont have to fork out the big bucks
simple

Crazy Dazz · 13-07-2013, 02:16 PM

There is NO legal requirement for the car to be registered in your mother’s name, but it does make it simpler. It depends on the insurance company, but if you insure in joint names you may be able to take advantage of your Mum’s NCB. Beyond that, most insurers will base the premium on the YOUNGEST “regular driver,” so to save any money of the basic premium, your mum would have to omit telling the insurance company that you’re a regular driver. If there’s a claim whilst you’re driving, the insurer WILL look at that. If your mum has her won car, and you have no other car its starts to look very sus (and if the car is rego’d in your name even more so.) The insurer may decide to they don’t want to pay out.
The way some insurers cover this is with an ADDITIONAL “unnamed driver” excess. Which means she either puts you on the policy and pays, or in the event of a claim you’re out of pocket another grand on top of your basis and age excess.