The Car Insurance Questions You Didn’t Know You Had

How do you check if someone else’s car is insured? What happens to your insurance if you modify your car? How do insurers calculate the agreed value of your car? If, like many of us, you don’t know the answers to these car insurance questions, you’re about to become a whole lot more insurance savvy after reading this article.

Below are the answers to car insurance questions you probably didn’t know you had.

How do I check if a car is insured?

You can ask the car owner to show their insurance policy documents. If you’re involved in an accident, the other driver should be able to provide details of their insurer.

For checking comprehensive insurance, there’s no public database, so you’d rely on the owner’s honesty or their insurance documentation.

However, for Compulsory Third Party (CTP) insurance, which is mandatory, you can check online. Most states have an online service where you can enter the vehicle’s registration number to find out if it has CTP insurance. This will also show if the car is registered, as CTP is included in the registration process in many states.

Here are the online services for checking CTP insurance and registration status for vehicles in each Australian state and territory. These services typically require you to input the vehicle’s registration number, and some may allow searches by VIN (Vehicle Identification Number) as well.

1. New South Wales (NSW): Service NSW
2. Victoria (VIC): VicRoads
3. Queensland (QLD): Queensland Government – Transport and Main Roads
4. Western Australia (WA): Department of Transport WA
5. South Australia (SA): SA Government – EzyReg
6. Tasmania (TAS): Transport Tasmania
7. Australian Capital Territory (ACT): Access Canberra
8. Northern Territory (NT): Motor Vehicle Registry NT

Can I insure a car that’s in someone else’s name?

This is a tricky one, but yes. At PD we see this happening on our multi-vehicle policies. If you’d like to do this, bear in mind that in the event of a Total Loss, the registered owner would be paid, not the policyholder.

Does car insurance cover engine damage?

It depends on the cause of the damage and the type of insurance policy you have. Generally, comprehensive car insurance may cover engine damage if it results from an insured event like an accident, theft, fire, or flood. However, damage due to wear and tear, poor maintenance, or mechanical failure is typically not covered under standard car insurance policies.

Is my car covered when driving overseas?

In Australia, your car insurance generally doesn’t cover you while driving overseas. If you plan to drive in another country, you should consider purchasing international car insurance or a temporary policy that covers you in the specific country you are visiting. It’s also advisable to check with your existing insurance provider, as they may offer options or partnerships with overseas insurers.

Does car insurance cover items stolen from my vehicle?

Car insurance typically doesn’t cover personal items stolen from your vehicle. This type of coverage usually falls under homeowners or renters insurance, which often includes personal property protection even when the items are outside your home.

However, comprehensive car insurance covers theft of the vehicle itself and any permanent fixtures inside. Be sure to check your specific policy details or speak with your insurance agent for precise information.

What happens to my insurance if I modify my car?

Modifying your car can affect your insurance in several ways. Most insurers require you to declare any modifications from the manufacturer’s standard specification. This includes changes like engine modifications, bodywork changes, suspension changes, and custom paint jobs.

Failing to inform your insurer about modifications can lead to a policy being invalidated. Modifications might increase your insurance premiums because they can increase the risk of theft or an accident, or they might increase the cost of repairs. Always check with your insurance provider before making any modifications to understand how it might affect your coverage and costs.

Can I pause my car insurance if I’m not using my car?

At PD, we don’t have a suspension or pause period. However, if you pay month to month you can cancel and re-start your insurance as required. Just keep in mind that cancellation fees do apply.

Some insurance companies allow you to pause your car insurance if you’re not using your car, especially for an extended period. This is sometimes called a “storage plan” or “parked vehicle” coverage, where the policy is adjusted to cover only risks like theft or environmental damage, not road accidents. It’s best to contact your insurance provider to see if they offer this option and understand any conditions or restrictions that may apply.

Does car insurance cover damage caused by natural disasters?

Yes, car insurance can cover damage caused by natural disasters, but it depends on the type of coverage you have. Comprehensive car insurance typically covers damages from natural events such as floods, storms, hail, and earthquakes.

This coverage is designed to protect against risks that are not related to collisions. If you only have third-party or collision coverage, you likely won’t be covered for natural disaster damage. It’s important to review your specific policy details or talk to your insurance provider to understand what is included in your coverage.

How is the agreed value of my car determined?

It’s done through negotiation between you and your insurance provider when you take out or renew your policy. This value is the amount that the insurer agrees to pay out in the event of a total loss of the vehicle, minus any applicable deductibles.

To determine this value, insurers consider several factors including the make, model, age, mileage, and overall condition of the car, as well as any modifications or added features. Market trends and the selling prices of similar vehicles can also influence the agreed value. It’s important to provide accurate and detailed information about your car to ensure a fair agreed value is set.

Can you claim car insurance on tax?

Yes, you can claim car insurance on your tax if you use your car for work-related activities. This doesn’t include driving to and from work. You need to keep good records, like a logbook, to show how much you use your car for work. This way, you can claim a part of your car insurance and other car expenses on your tax return.

We’ve put together everything you need to know about claiming car expenses on your tax return – here.

Can you insure an unregistered car?

At PD we don’t allow insurance on unregistered vehicles, it also isn’t general practice for other car insurers, either. In order to be insured, you need have a car that’s registered and deemed legal and safe to drive on Australia’s roads.

Insurance for the unexpected

Car insurance can save your pocket when you need to pay for vehicle repairs or replacement. With different types of car insurance, you get to choose what suits your car and your budget and take it from there. Get a quote today by clicking below. And once you buy your plan, you can get behind the wheel with added peace of mind.