Loaning a Car - Insurance and Rego Questions

jokingsplits on 04/07/2024 - 15:25

My brother has a bit of money problems at the moment and needs a car for his work. I've got a spare that i was going to sell, but I'm willing to lend to him temporarily and then sell when he's done with it.

He's not in a position to buy, and any transfer invites costs anyway - roadworthy, duties etc. Also bit notorious for being slack on payments so I would prefer that its all sitting with him.

Can he take out his own insurance on the car? Or would he need me to have it in my name, and just give me the money?
Same for rego which is up this month, do I need to just pay and get him to pay back?

Is there any other better way to do this that is cheap or easy?
Is there any other issues thst might arise in having the car in my name ans him being primary driver? He's a good driver and I don't think there would be any issues, but equally prefer to keep things simple between us and not have to deal with any awkwardness… obviously the best way would just be to transfer it to him and get any money later but that still costs for the duties and roadworthy etc, which neither of us would really want to pay if we can avoid it.

Any ideas? (I'm in Victoria if that matters)

Automotive Car Insurance Insurance

Comments

  • geekcohen on 04/07/2024 - 15:30

    Can he take out his own insurance on the car?

    Yes he can.

    Same for rego which is up this month, do I need to just pay and get him to pay back?

    If the rego is in your name, transferring it to him would require a RWC and then transfer costs. Best to leave it in your name and then get reimbursed by him or he can pay directly (via BPAY or just get his Card and do it online). Only issue with the rego being in your name is any fines etc would come to you. Same with any police knocks.

    • spal on 04/07/2024 - 16:09

      Yes, but OP can always nominate the driver.
      OP can also take out insurance in his own name, and have his brother on record as one of the nominated driver. Insurance might work out cheaper with any existing discount on the policy being maintained (assuming OP has a good driving history). I have the same arrangement with my daughter. I bought the car for her. However, I am one of the nominated driver and I buy the insurance as I get a discount.

      • jv on 04/07/2024 - 16:15

        OP can also take out insurance in his own name

        Why risk your rating ??

      • HeWhoKnows on 05/07/2024 - 09:14

        No idea why you got neg voted.
        Ive reversed that for you
        What you are is 100% correct

        geekcohen is the one making the incorrect statement/guidance and hence they should be neg voted

        Just shows what fools exist on this web site

        • spal on 06/07/2024 - 07:38

          Thank you. Unfortunately, my vote was taken in returning your favour.

    • jokingsplits on 04/07/2024 - 17:00

      That's a good idea with the bpay.. forgot that that's how it's paid. Easy

      As for the insurance
      Not super worried as it's really not worth much, probably wouldn't even get what it costs for a years insurance on the thing.
      Any minimum I should insist on, knowing him he wil go for the cheapest… but I figure as long as he has third party property it should be okay.
      Claims should be for the driver not the registered owner right?

      • sumyungguy on 04/07/2024 - 17:05

        Switch to TPP, mine cost $235 with Qantas

    • HeWhoKnows on 05/07/2024 - 09:11

      @geekcohen

      WRONG WRONG WRONG
      AND TOTALLY WRONG!

      One cannot insure an item they do NOT own

      lending the car to someone does not pass ownership onto them

      Only the registered owner can insure the car

      But OP can add thier brother as a regular driver onto thier policy (as others have stated)

      Problem with that is that OP is paying the insurnace and in case of an accident will end up paying the excess and coping the penalties associated with making a claim.
      And then any traffic and parking fines as well.
      From what OP says, his brother wont be coughing up any money.

      This is really a family matter for OP to sort out.
      Lending the car to thier brother comes with high risks and possibility of grievences developing.

      So it is important that OP understands the consequences of thier actions

      Thank you

  • Jake D on 04/07/2024 - 15:46

    I did similar with a friend a few years back. Insurance needed both our names onthe policy but that was about it.

    • jv on 04/07/2024 - 16:16

      Insurance needed both our names onthe policy but that was about it.

      Not true…

      • Jake D on 04/07/2024 - 17:41
        +1

        … with my preferred provider.

        • jv on 04/07/2024 - 17:50
          +1

          Maybe…

          Budget Direct or AAMI didn't even ask who the owner was…

  • jv on 04/07/2024 - 16:14
    -2

    Can he take out his own insurance on the car?

    yes

    • Murkymerv on 04/07/2024 - 16:43
      +1

      JV , "you've done it again".

  • sumyungguy on 04/07/2024 - 16:46
    +3

    Notorious for being slack on payments = brother-to-brother car rental payment weekly in-advance

  • JimmyF on 04/07/2024 - 17:03

    Can he take out his own insurance on the car? Or would he need me to have it in my name, and just give me the money?

    He could take out a polict BUT it is normally 'best' to have the insurance in the persons name who the rego is in. So if that is you, you should have you down as the account holder, with them listed as a driver.

    Same for rego which is up this month, do I need to just pay and get him to pay back?

    See above, leave it in your name, they can pay you for it.

    • jokingsplits on 04/07/2024 - 17:33

      Is the 'best' to do with issues of claiming? The car is really not worth all that much so not to worried, but don't want to get stuck with paying for third party issues. I know compulsory covers most issues, but really don't want to get stuck with anything. Or mess with my claims history for his mistakes.

      • JimmyF on 04/07/2024 - 19:43

        Yes easier if you are claiming that all the names match up.

        As the owner of the car, they'll come after you first, so best your friend has insurance to cover any issues in that case. You just point them to the insurance company.

  • theHMASfriendship on 04/07/2024 - 17:53
    +2

    Any ideas? (I’m in Victoria if that matters)

    Yes I have an idea for automatic pants. They look very much like normal pants but are automatic.

  • AussieDaddy on 04/07/2024 - 18:53

    If it isn't an expensive car, I would rather ask him to pay me back in instalments, weekly or monthly when he gets paid, and let him deal with any rego/insurance related issues that might arise. A win-win imo.

  • coffeeinmyveins on 04/07/2024 - 19:09
    +3

    This will end well with both parties happy with what's happened

    /s

    • SlickMick on 05/07/2024 - 09:20
      +1

      I once loaned our 2nd car to a friend in need, and stressed the whole time as to what might happen. Not to the car, but to the relationship if something happened to the car. e.g. who pays the excess.

      If I did it again, I'd write insurance details etc down for the driver, and include the fineprint. e.g. we have a $5000 excess, which driver will pay in the event of an incident.

      TBH I think it's like loaning friends money, it's probably better to just not do it.

      • coffeeinmyveins on 05/07/2024 - 09:54

        TBH I think it's like loaning friends money, it's probably better to just not do it.

        yep.

        Or assume that you're not getting it back.

  • Euphemistic on 04/07/2024 - 21:42

    If hes slack with payments keep your own insurance on it and add him as a listed driver. Dont forget you might need to update the garaged postcode too.

    Up to you wether you get him to pay rego and insurance, but keep it done and in your name so you know its done properly.

  • BeamMeUp on 05/07/2024 - 09:57

    Sell your old car with no RWC, use the money to buy an old roadworthy car in his name. Give it to him or say he can pay you back when he can but consider that as never. Insurances and liability for all other possible car costs, rego, fines etc are his issue. Keep your name completely out of the solution.

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