Pensioner Car Registration- Cannot get insurance.

reshre8 on 29/06/2020 - 18:13

Hi Bargainers,

I have a question. My aunt is a pensioner who does not have a drivers licence. She bought a car about a year ago under her name thinking they do not need to pay for rego so could save some money. She bought the car, got the CTP and rego, but the issue now is that she cannot get insurance (not CTP/greenslip) as the insurance companies require the registered owner of the vehicle to be a driver of the car.

I feel like sh$% because it was sorta my idea that to register the car under her name. I thought I could help her save some money. Now my uncle who is the primary driver of the car is ticked off because the car does not have insurance. My aunt cannot get a licence as she has problems with vision. I have told him I would find a way to either transfer the car under his name or find insurance will to insure the driver.

Why would service NSW allow my aunt to register a car under her name without her being able to get insurance anywhere? This sorta feels like entrapment.

Has anyone had a similar experience? Any suggestion is appreciated.

She drives a Toyota Tarago and lives in NSW if it helps.

Thanks in advance.

Automotive

Comments

  • whooah1979 on 29/06/2020 - 18:17
    -1

    insurance companies require the registered owner of the vehicle to be a driver of the car.

    Hmmm. Your aunt has ownership of the vehicle. Put her name as the registered operator of the vehicle with the RMS. Take out an insurance policy under her name. Done.

    • reshre8 on 29/06/2020 - 18:31

      I dont think it would work as she does not have a licence nor can get one because of her eyesight. Being a registered operator wouldn't it require her to be able to drive the vehicle?

    • YourITLink on 30/06/2020 - 08:06
      +2

      I work for NRMA, for CTP yes the registered operator is required to be the owner, for insurance you would simply list the OWNER of the vehicle as your Aunt as she is the owner and then list your uncle as the DRIVER as actual driver.
      You will be asked the age your aunt got her licence to which your answer would be her current age as she does not have one this would give her 0 years driving which is correct, add your uncle as driver and list the age he obtained his licence.
      Speak to a consultant - 132132.

  • bdl on 29/06/2020 - 18:18

    " She bought a car about a year ago under her name thinking they do not need to pay for rego so could save some money. She bought the car, got the CTP and rego"… I don't understand, she thought she didn't need to pay for rego, then paid it anyway(?)

    • reshre8 on 29/06/2020 - 18:33
      +1

      She still does not need to pay rego. She can get the CTP and rego but the issue is she cannot get a car insurance, i.e comprehensive or third party.

  • Euphemistic on 29/06/2020 - 18:19
    +10

    Think you just found out that trying to beat the system doesn’t work.

    The owner, the registered operator and the insured party do not need to be the same.

    Try to insure it in your uncles name, or even yours.

    • reshre8 on 29/06/2020 - 18:43

      Big lesson on my part. This wouldn't have bothered me as much if the issue was with me but I dont want to get my aunt in trouble.

      My first thought exactly was to register it under my uncle's name but all the insurance companies I have checked with do require the owner of the vehicle to be in the insurance which is not possible if the owner does not have a drivers licence.

      • brendanm on 29/06/2020 - 18:53
        +2

        Name on rego papers does not mean that is who owns the vehicle.

  • whooah1979 on 29/06/2020 - 18:19

    She bought the car, got the CTP and rego, but the issue now is that she cannot get insurance (not CTP/greenslip)

    Does the vehicle have CTP or not?

    • Oofy Doofy on 29/06/2020 - 18:22

      CTP is part of being able to get rego at all…

      • whooah1979 on 29/06/2020 - 18:24
        +1

        Ohh. I missed the (not CTP). Thanks.

  • [Deactivated] on 29/06/2020 - 18:21
    +6

    Entrapment, haha 🤣

    • Cheeper on 29/06/2020 - 20:16
      +1

      Egg zactly…
      How is it entrapment by the rms? It is the insurance co's that are refusing the insurance.
      It is not the RMS job to guide you on things that are outside their jurisdiction. That is your job…

      • [Deactivated] on 30/06/2020 - 08:18
        +1

        Bet the OP would claim police entrapment if a learner 16 years old could buy a car and drove without a full licence passenger.

  • whooah1979 on 29/06/2020 - 18:22
    +3

    as the insurance companies require the registered owner of the vehicle to be a driver of the car.

    Not true. We register different vehicles to different registered operators while different drivers drive the vehicles.

    • WoodYouLikeSomeCash on 29/06/2020 - 18:26
      +3

      Same here, we have vehicles registered under a different name yet we are still able to get insurance.

  • BadHorse on 29/06/2020 - 18:26
    +1

    Why would service NSW allow my aunt to register a car under her name without her being able to get insurance anywhere? This sorta feels like entrapment.

    I would say its built in by design to stop people shorting their registration funding. I don't know for certain but can you get the registration changed over?

    • kerfuffle on 29/06/2020 - 18:35
      +5

      They can change the registration but lose the pensioner concession on the rego, which is why OP got his aunt to register a car under her name …

      • Drakesy on 29/06/2020 - 18:41
        +4

        This should be the TLDR

      • reshre8 on 29/06/2020 - 18:53
        -1

        This is my last resort, although this would mean I would need to fork out about a thousand dollars. I dont want them to cope with the costs for this, in hindsight, I should have done a bit more research. I wanted to see if anyone had a similar experience and what they did to get the insurance.

        • [Deactivated] on 29/06/2020 - 18:57
          +4

          Lessoned learned,shame on you.

          • Euphemistic on 29/06/2020 - 20:30
            +1

            @[Deactivated]: There’s no shame in learning a lesson!

            What’s most concerning for me is the vehicle has been uninsured for 12 months.

        • brendanm on 29/06/2020 - 18:57
          +4

          Just insure the damn car in your uncle's name.

          • Cheeper on 29/06/2020 - 20:19

            @brendanm: As Brendanm said above… insure in your uncles name.
            Now, if that is not the real story here.. ???

  • Davo1111 on 29/06/2020 - 18:57
    +4

    Sounds like the insurance company knows you're trying to game the system by registering the car under a name of a pensioner, whom cant drive the car and is therefore not a primary driver.

    I cant see it written explicitly, but yeah, it sounds kind of obvious right? Otherwise we would all just get oldies to register our cars.

    • Seraphin7 on 29/06/2020 - 19:52
      +1

      Exactly … some old duck somewhere could make a motza having every car in the state registered to her for a $50 p.a. "handling fee".

      • deepblonde on 30/06/2020 - 08:42
        +2

        No, one vehicle is the limit, in all States , so any aged pensioner must pay full rego costs for any 2nd, 3rd etc vehicle

  • Fysh on 29/06/2020 - 19:53

    What is the value of the car. What is the lowest rebook value for the vehicle?

  • Randxyz123 on 29/06/2020 - 20:27
    +2

    Why would service NSW allow my aunt to register a car under her name without her being able to get insurance anywhere? This sorta feels like entrapment.

    Because why would they care? Also, it's to stop exactly this!

    It would be incredibly unlikely this idea would work. You found a loophole but didn't actually think to test it.

    The thing to do now is to try every insurer you can find. Call up, say something like "My aunt has a car but she doesn't want to drive. I'm helping her with her shopping etc, need to drive her car etc". Even though it is complete bs maybe they'll help.

    Another option could be seeing if your aunt can get a learner permit? She can then be a "driver"

    Final option transfers the rego to your uncle and you pay the stamp duty.

    There was a WP thread about this recently as well. I think AAMI was one that didn't care.

    • kerfuffle on 29/06/2020 - 20:41

      Another option could be seeing if your aunt can get a learner permit?

      Pretty sure you need to do an eyesight test before you can get your Learner Licence; OP said that their aunt has issues with vision hence the lack of licence

  • apsilon on 29/06/2020 - 20:31
    +1

    Try a different insurer. I still haven't gotten rid of dad's car (it's worthless essentially) so he's still the registered owner and has free rego despite not having a licence any more. I have insurance on it with both of us listed as having financial interest in it and have been driving it (barely given not going to the office) until the rego runs out at the end of the year at which time we'll scrap it.

  • whooah1979 on 29/06/2020 - 20:35
    +2

    My aunt is a pensioner

    May I ask how old she is?

  • djones145 on 29/06/2020 - 20:49
    +2

    so what you really.mean is you wanted a car, didnt want to pay rego and wanted cheap insurance so you got ur aunt to buy it under her name and you paid

    • whooah1979 on 29/06/2020 - 20:51

      Op should get an Ozb medal.

  • pegaxs on 29/06/2020 - 20:53
    +7

    Why would service NSW allow my aunt to register a car under her name without her being able to get insurance anywhere?

    It’s not the job of the RMS to check the eligibility of its customers to get insurance that is not mandatory.

  • Snake 4 on 29/06/2020 - 21:24
    +4

    My ex is a pensioner, never held a licence, has a car registered in heme and full insurance. Car is driven by her partner.

    She just nominated her partner as designated driver

    The above is in NSW.

  • fishing on 30/06/2020 - 07:16
    +3

    Your aunt is entitled to be an owner of a vehicle for registration &CTP purposes. As a vision impaired person (or anyone for that matter), she is also entitled to have a driver whom she nominates for insurance (TPFT/Comprehensive) purposes as the named driver on the vehicle.

    I don't know what insurance companies you have contacted but use the online quote systems for reputable insurance companies and try again.

    You do not have to be the owner of a vehicle to take out insurance

    • Euphemistic on 30/06/2020 - 09:56

      It might be better to ring. You can’t explain anything to a website

  • cheapass88 on 30/06/2020 - 08:12
    +2

    Hi mate,

    Aami and Bingle both allow insurance without having to be the primary owner of the car. I've done this for years and have had no issues for claims, etc. I've spoken to a rep and they say only these 2 companies allow this.

    Edit: Just to add, these are the only 2 companies that don't need to mention the registered owner. I'm sure other companies allow it too but you'll be paying a lot more

    • JPLengineer on 06/07/2020 - 11:27

      I have also had this arrangement (myself as the car owner and wife listed as the sole deriver) with Allianz then Suncorp, took out the policy over the phone.
      Also had no issue with the one and only claim I made with Allianz, (Suncorp no claims yet).

  • akunno on 30/06/2020 - 08:56

    My aunt is a pensioner who does not have a drivers licence.
    …
    She drives a Toyota Tarago and lives in NSW if it helps.

    Is it legal to drive without a driver's license?
    Googling shows: "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. … But if you're driving without carrying your restricted driver's licence, then you're facing a fine of almost $200"

    • Euphemistic on 30/06/2020 - 09:58

      I wonder if she would be flagged by the video rego recognition system. I know they flag unregistered cars and drivers with outstanding warrants etc. I wonder if the registered owner not having a licence is a flag and you end up getting pulled over more often as a result.

  • nswnotill on 30/06/2020 - 10:28
    +1

    I have an elderly couple ( extended family members) who had a vehicle registered in husbands name. He later handed in his license due to poor eyesight, and his wife now drives the car. They were pulled up by Highway Patrol as the vehicle ID recognition showed that the owner of the vehicle was no longer licensed and 'please explain' the current driver. They were advised to transfer the rego. to the wife's name as they would be continue to be pulled over by Highway Patrol.

  • LFO on 30/06/2020 - 11:19

    She bought a car about a year ago under her name thinking they do not need to pay for rego

    Is that the case?
    Paying NO rego at all or paying reduced (concessional) rego?

    In QLD it is only a reduced (50 bucks??) yearly registration fee and only for one (1) vehicle and only of a certain kind of vehicle.

    • kerfuffle on 30/06/2020 - 11:35

      Paying no rego at all; OP is in NSW.

      • LFO on 30/06/2020 - 12:27

        WOW.

        ThankU

  • smashman42 on 30/06/2020 - 13:29

    What about if it was registered in joint names? Can you still get the free rego then/is that even a thing in NSW?

    Here in QLD we have both my car and the wife's in both names and could get concession rego (via disability pension) on either one, but only one, of them. Didn't have to be the one I primarily drive or anything.

    Different state different rules of course, and I'm medically cleared to drive without any vision probs, so probably fit the NSW rules better than your aunt.

  • goodcopbadcop on 01/07/2020 - 16:51

    My mother is 89 and owns a car but handed her licence back because she was not confident driving…but a car is handy if she wants to be driven to places in her own vehicle, and others from interstate can use it and drive her around. So the car is still listed as her the owner, but we got comprehensive insurance and they wouldn't have any other owner but her - and me and other siblings are listed as drivers. It can be done - in fact the insurance company said that she is the legal owner and no-one else and if it was written off in an accident the money would go back to her - and so it has to be listed like that and it is the right thing to do. Ring around - as there will be other insurance company's that can do this.

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