Should car insurance be compulsory ?

[gromit]

Just had a nearly new vehicle potentially written off by an uninsured driver !

The MUX only had 9,000Km on the clock, the other party pulled out of a junction in front of me on an Industrial Estate. I started to brake, the auto braking couldn't react quick enough as he was heading across the front of the vehicle. He claimed he didn't see me (daytime lights, big blue vehicle).
Wasn't high speed but the airbags deployed and the seat belt tensioners fired. I'm OK, the other guy was a bit shaken up.

Many vehicles stopped to check we were OK, One lovely man checked I was OK, no chest pains etc, cleared the debris from the road then borrowed a broom from a nearby company & swept up !

I guess the other party will be paying $20 per week for the rest of his life ?

Off to work in a moment then I have to deal with the insurer, Already spoken with the dealer, next Feb for a replacement.


Colin

[dirvine]

I think basic insurance ie the other car gets repaired yours you do what you like (often called bomb insurance) should be compulsory. The other issue I dont like is despite the fact you were not at fault, your insurance will still go up. I had minor damage done to my car $500 and not my fault. However on renewal I went from Rating 1A to 1D and an increase of about $200. By the time I got back to 1A rating I had paid for the damage to my car and a bit more. No doubt with uninsured you will be pinged the same.

[scarry]

I recon it should be,it would stop a lot of heartache,but like everything,no matter what the regulations are,some still wont do it.

There are thousands of vehicles being driven everyday,unregistered and many unlicensed drivers on the road as well.

When i worked at AE Smith and sons,they had no insurance on any of their company vehicles,apart from CTP.And they had hundreds of them,at many branches all over the country.
They always said they were financially way ahead,compared to if they had insurance.
i had one of their vehicles ,a Falcon P/V written off in a bad hail storm.That was the first vehicle they had ever had written off in a storm,but it was one hell of a storm.Almost every panel was peppered with dents,and the lights and windows smashed.
Just for a bit of trivia,the bosses Fairlane was stolen and used in a bank robbery,they got it back,bullet holes in the rear doors and panels,blood all over the seats[bigrolf]

[1950landy]

Yes, should have proof of either Comprehensive or Third-Party Property before vehicle is registered each year. Maybe we need to follow the US where when you get pulled up by the police, they ask you for your licence & insurance & if you don't have insurance, you are fined or lose your licence.
Many, many years ago my wife was in an accident, the other driver & his wife was deaf & could not speak so had to do all talking by notes. My wife was driving straight ahead & was on right of other driver & he had a give way sign so should have given way. Turned out they were uninsured, didn't work & told us to take them to court. We decided it would be more cost effective to just replace the front guard ourselves than to pay for a Lawer & he would get league aid. One of the reasons we went that way was, was we had sold the car & if we had gone through our insurance, it would have taken too long to have fixed, the buyer still wanted to buy the car at a reduced price to cover having the guard replaced & painted. [smilebigeye]

[Homestar]

Hope you're all ok Colin - Airbags are not pleasant things to experience when they go off. Maybe the world is telling you you shouldn't have moved away from the Territory... [bigwhistle]

But seriously, a real **** and yes, some form of insurance should be compulsory - it is in most countries - not sure why we drag the chain so much on simple things like this to be honest.

[johnp38]

Yes, should have proof of either Comprehensive or Third-Party Property before vehicle is registered each year. Maybe we need to follow the US where when you get pulled up by the police, they ask you for your licence & insurance & if you don't have insurance, you are fined or lose your licence.

The US setup is not straightforward like ours where we all have compulsary third party 'personal' cover as part of our vehicle rego requirements.

What type of minimum liability cover they have to have in US is dependant on their state regulations.

But I think our current system is adequate as it always covers you for injury liability to others. As long as you have your own third party 'property' or comprehensive on top of your rego, you don't need to concern yourself whether the other party is insured or not, my policies don't require me to pay any excess unless I am at fault, or I can't provide the other drivers details for them to chase up.

[loanrangie]

Hope you're all ok Colin - Airbags are not pleasant things to experience when they go off. Maybe the world is telling you you shouldn't have moved away from the Territory... [bigwhistle]

But seriously, a real **** and yes, some form of insurance should be compulsory - it is in most countries - not sure why we drag the chain so much on simple things like this to be honest.

Should be like the UK model, no insurance no road tax (reg) so illegal to drive without it.

[gromit]

Hope you're all ok Colin - Airbags are not pleasant things to experience when they go off. Maybe the world is telling you you shouldn't have moved away from the Territory... [bigwhistle]

But seriously, a real **** and yes, some form of insurance should be compulsory - it is in most countries - not sure why we drag the chain so much on simple things like this to be honest.

Thanks Gav,
Low speed but still scary when they go off. A change of underpants and I was OK [bigsmile1]

Spent about 30 minutes on the phone to the RACV (insurance) this morning. Hire vehicle sorted, sounds like the car might be replaced, they have a team that will track down the same model/spec/colour. I'm sure I'll be out of pocket somewhere along the line but not as much as the bloke that caused the accident !

Colin

[Slunnie]

Sucha bugger that the accident happened at all.

I think that to be on the road TPP should be a minimum. Your choice if you don't want your car covered, but anything that you hit should be covered.

[Lionelgee]

Thanks Gav,
Low speed but still scary when they go off. A change of underpants and I was OK [bigsmile1]

Spent about 30 minutes on the phone to the RACV (insurance) this morning. Hire vehicle sorted, sounds like the car might be replaced, they have a team that will track down the same model/spec/colour. I'm sure I'll be out of pocket somewhere along the line but not as much as the bloke that caused the accident !

Colin

G'day Colin,

Good to hear that you are okay. Now you have to go through the inconvenience of going without your car until it is fixed. Just a subtle reminder of the event and your experiences of it.

Kind regards
Lionel

[3toes]

In the UK is illegal to drive without insurance as rego does not include CTP which is covered in the car insurance. Details of all insurance is held in a central database which is connected to the Police number plate checkers

That said those who drive unregistered vehicles tend to be disproportionately involved in accidents so not sure how this helps with compliance as there are estimated to be about 1 million unregistered or insured vehicles being driven on the UK roads

If not registered or insured and picked up by a camera who do you post the fine to?

[Tombie]

I don’t care (about the other party)!!!!

I have mine covered, I couldn’t care less if the other party has to pay my repair off for the next 30 years.

That’s a them problem.



Glad you are ok…. Cars can be fixed easier than humans.

[ramblingboy42]

I say caveat emptor....I think that's applicable.

[1984V8110]

I believe third party property should be compulsory, partially because I believe many drivers don't know the difference between CTP and TPP and may genuinely believe they are covered against damaging another vehicle by the CTP cover. Moreover young people (especially) are not very good at assessing risk and consequences, so in this instance I think a 'Nanny state' approach is justified.

[RANDLOVER]

............ As long as you have your own third party 'property' or comprehensive on top of your rego, you don't need to concern yourself whether the other party is insured or not, my policies don't require me to pay any excess unless I am at fault, or I can't provide the other drivers details for them to chase up.


................ Moreover young people (especially) are not very good at assessing risk and consequences, so in this instance I think a 'Nanny state' approach is justified.

As others have said it doesn't matter as long as you are insured, as the insurance company and their lawyers/debt collectors will be tasked with recovering their damages. My advice to parents is make sure your kids are insured, so they don't come crying to you if they total a new Ferrari, etc.

[shanegtr]

I don’t care (about the other party)!!!!

I have mine covered, I couldn’t care less if the other party has to pay my repair off for the next 30 years.

That’s a them problem.

Couldn't agree with you more. At a bare minimum I would have 3rd party cover on a cheap car - gotta cover your arse in case you hit something expensive[bigrolf]

[scarry]

Couldn't agree with you more. At a bare minimum I would have 3rd party cover on a cheap car - gotta cover your arse in case you hit something expensive[bigrolf]

Be carefull with third party only,lots of exclusions in some policies.
One is they won't chase someone who runs into you,and you are not at fault.
You are on your own to sort it.

[p38arover]

my policies don't require me to pay any excess unless I am at fault, or I can't provide the other drivers details for them to chase up.

My wife had a bloke reverse into her car at traffic lights and then drive off. We got the rego no. but because we couldn’t identify the driver, we had to pay the excess. The police visited the other car owner’s address but no one ever answered the door nor did they respond to the card the copper left for them - so after 6 months, the cops dropped it.

[shanegtr]

Be carefull with third party only,lots of exclusions in some policies.
One is they won't chase someone who runs into you,and you are not at fault.
You are on your own to sort it.
I wouldn't expect 3rd party to cover that situation anyway.

[ozscott]

No that is the nature of third party insurance. Because your damage is not covered by your insurer, your insurer will (assuming no specific exclusions to the insurer indemnifying you apply) pay for the reasonable costs of repair or replacement of the other vehicles. But just bear in mind in such cases to ensure that your insurer is aware of your interests (in writing to the insurer and an acknowledgement in writing from your imsurer) when it is negotiating a settlement with the other vehicle owner / insurer. There may for example be an agreement between your insurer and the owner driver of the third party vehicle (or its insurer) to pay for part of the other vehicle's repair costs on the basis of an agreed apportionment of liability (many, but not all, intersection accidents involve legal responsibility on the part of both drivers). In such cases you want the insurer to note your interests and it may be possible to resolve both with some communications (this may not be relevant where the owner of the other vehicle who is owed something is not one and the same as the driver in which case, absent agency, that owner will not be liable for the damage that you may be entitled to claim and your claim will be against the driver). A good approach is to also make a claim on your own insurer when you are in an accident and have comprehensive insurance, even if you think you are in no way at fault, in preference to dealing with/claiming against the at fault driver (or his/her insurer). Let your insurer sort out your repairs and for it to take recovery action. However there are many pitfalls that may cause issues and exceptions to general rules that can cause issues with recovery and your interests generally if you are not aware of your rights and the best approach I reckon is 1. Make sure if you can afford comprehension insurance you do so: 2. You get legal advice (especially important if you only have third party property damage insurance).

Cheers
PS...not legal advice. [emoji106]

[RANDLOVER]

No that is the nature of third party insurance. Because your damage is not covered by your insurer, your insurer will (assuming no specific exclusions to the insurer indemnifying you apply) pay for the reasonable costs of repair or replacement of the other vehicles. But just bear in mind in such cases to ensure that your insurer is aware of your interests (in writing to the insurer and an acknowledgement in writing from your imsurer) when it is negotiating a settlement with the other vehicle owner / insurer. There may for example be an agreement between your insurer and the owner driver of the third party vehicle (or its insurer) to pay for part of the other vehicle's repair costs on the basis of an agreed apportionment of liability (many, but not all, intersection accidents involve legal responsibility on the part of both drivers). In such cases you want the insurer to note your interests and it may be possible to resolve both with some communications (this may not be relevant where the owner of the other vehicle who is owed something is not one and the same as the driver in which case, absent agency, that owner will not be liable for the damage that you may be entitled to claim and your claim will be against the driver). A good approach is to also make a claim on your own insurer when you are in an accident and have comprehensive insurance, even if you think you are in no way at fault, in preference to dealing with/claiming against the at fault driver (or his/her insurer). Let your insurer sort out your repairs and for it to take recovery action. However there are many pitfalls that may cause issues and exceptions to general rules that can cause issues with recovery and your interests generally if you are not aware of your rights and the best approach I reckon is 1. Make sure if you can afford comprehension insurance you do so: 2. You get legal advice (especially important if you only have third party property damage insurance).

Cheers
PS...not legal advice. [emoji106]

That sounds like a very nice insurer that is prepared to act in someone else's interests, usually they just act in their own interest even to the detriment of their clients! For example a guy at my brother's work parked his motorcycle outside, a car left the road and flattened it, insurer argued the claim, eventually paid, but said he had to dispose of the wreck, most places wanted to charge him hundreds of dollars to remove but he finally found someone who would collect it for free.

[vnx205]

There are circumstances (which probably don't apply to anyone here) where choosing TTP over comprehensive doesn't save you money.

About 30 years ago I was involved in educating 16 year old students about about such things as the cost of car ownership, insurance, causes of accidents, basic first aid, and the process of getting a licence.

The information was delivered by the police,the RTA, the NRMA, the Ambulance Service and a car dealer.

The NRMA did the calculations based on a student's claim that he would buy an old bomb first and then after a few years get a "proper" car like V8.

TTP accumulates no claim bonus at half the rate of a comprehensive policy, so having twice as much no claim on the very expensive premium on a V8 on hire purchase driven by an under 21 driver would more than cover the extra cost of the full insurance on the old bomb.

On a different topic, the car dealer did his best to convince the students that the sensible thing to do was to avoid buying a car unless it was impossible to avoid.

[Roverlord off road spares]

Yes I agree they should have some kind of insurance, even if they don't want to insure there car they should have a least 3 party. All the cars Mario and I had and they boys have been fully insured. We have drop Brendon car down to 3 party as he is in Japan and is sitting in the drive way and I only take it out now and then and the car is getting old and the insurance works out a bit more than the car is worth. In the UK you have to have insurance on your car as it is illegal not to have it, minimum is 3 party, also the police over there can check your number plate to see if it insured, Heather

[Milton477]

What if some sort of basic level of insurance was included in the price of fuel & paid to a central fund?

If it moves, its insured regardless of rego or driver's licence. The more it moves, the more insurance is paid.

[vnx205]

What if some sort of basic level of insurance was included in the price of fuel & paid to a central fund?

If it moves, its insured regardless of rego or driver's licence. The more it moves, the more insurance is paid.If it is linked to fuel, then someone who lives in regional Australia and has to drive huge distances would be paying more for insurance than a city driver who drove fewer kilometres.
However the city driver might be more likely to have to make an insurance claim.

[BradC]

If it is linked to fuel, then someone who lives in regional Australia and has to drive huge distances would be paying more for insurance than a city driver who drove fewer kilometres.
However the city driver might be more likely to have to make an insurance claim.

An therein lies the inherent unfairness in that system. I can't think of a fairer way to do it than they do in the UK. You arrange your own insurance, and the proof of that goes with your rego renewal. No insurance, no rego. If you are caught driving uninsured it's a not-insignificant penalty.

I've sold a couple of cars privately over the years, and I've not let the buyer leave my house until they can confirm they've arranged insurance cover of some sort. The last one was a lovely lady buying her daughter her first car. She hadn't given it so much as a second thought. When I asked how she'd cope if her daughter was involved in even a partially at-fault accident with an exotic $xxx,xxx.xx vehicle on the way home she suddenly thought about it and asked if I'd mind her hanging around while she arrange the insurance. We even made them a cup of tea.

When I was buying cars, you used to be able to get a "cover note". Apparently now you just buy a policy on-line and then manage the cooling off period if you get a better deal or have a re-think post-purchase.

[trout1105]

What if some sort of basic level of insurance was included in the price of fuel & paid to a central fund?

If it moves, its insured regardless of rego or driver's licence. The more it moves, the more insurance is paid.

The levy that we pay on fuel now was put there in the first place for road maintenance, It now goes dirctly into general revenue.
The same would happen to any new tax on fuel for insurance.