WHEN purchasing car insurance in Australia, there is more to consider in certain localities than others; and with this, also comes higher fees in certain areas than others. Every driver requires insurance to drive in Australia; when purchasing a policy, a safety inspection is run, not only to determine if the vehicle is safe on the roads, but also to ensure drivers are covered from collisions. Different territories in Australia have different rules regarding how to register a car, and how its insurance rates are determined.
Registration
Regardless of where you register the car, proof that the vehicle belongs to you is the first requirement. Proof of identity, or renewal documentation will also be required, depending on if the car is new, or if you are renewing a car that was previously insured.
Safety inspections
Authorised inspection stations carry out the inspection; if your car is deemed unsafe, it will not pass the inspection. Depending on your state, you can have the car inspected at a garage station in some locations, while others must visit the authorised inspection sites. Registration and renewals will not be given until all repairs are made, for the vehicle to pass the safety inspection, prior to being deemed ready to go on the road.
Compulsory third party insurance (CTP)
Every new vehicle in Australia must get CTP coverage; It is protection for when you get in an accident with a third party, but does not cover property damage. And, if you are at fault, you are not covered for damages either. In New South Wales and Queensland, you have a few different insurers to visit, so you can save on the price of insurance
Registration fees
This varies on your vehicle’s weight, and if it is used for business or personal use. The number plate, and additional fees will vary greatly, depending on the state you live in.
New South Wales
For car insurance in NSW, Pink slip safety renewals cost $31.10; if it is a new car, blue slip registration is $61. A new car inspection fee is also $61. Private registration fees vary by weight: for cars up to 975 KG, it is $250; up to 1154 KG $279; up to 1504 $329; and up to 2504 KG is $470. If the car is used for business, a $40 plate fee may apply. In addition to these fees, is the CTP insurance price that you will pay, as this coverage is required in the location.
Queensland
Gas fueled cars in the location require an additional inspection, which has to be carried out by an authorised inspection agency. A $220.20 registration fee is standard, depending on the number of cylinders the vehicle has. A $45.80 traffic improvement fee is also assessed to all vehicles on the road. CTP charges vary depending on the type of car, who is driving, and the type of use the vehicle will undergo. A fee of $24.60 is assessed for the plate that is on the vehicle as well
In general, there are far fewer costs, and fewer taxes imposed on drivers in Queensland, in comparison to New South Wales. Of course depending on the cost of the CTP coverage, the rates will vary; but, in comparison to the total fees that are paid, Queensland drivers are looking at a much cheaper registration, and insurance fee, than the drivers in New South Wales.
Additional coverage
In addition to the CTP coverage, which is required in both localities, any additional insurance that a driver has, based on their work, or personal use needs, will also add on to the total cost they are going to pay, for insurance and for the registration fees they will pay for their vehicle as well. And, depending on how many quotes drivers get, they might also pay a much lower rate for the protection they purchase, when deciding on CTP coverage.
Inspection costs
In terms of inspection costs, both in New South Wales, as well as Queensland, drivers can get their car inspected at an authorised station, or at a garage station. This means that drivers who compare a few stations, to find out what the registration and safety inspection costs are going to be, can greatly reduce the rates they are going to pay, for these safety inspections to be run.
Additional repairs
This additional fee might apply to drivers in either location, if the safety inspection is failed; if a driver has to do additional repair work to their car, before they can drive it on the road safely, this is also going to add on to the cost of their insurance and registration. Although it is not a fee that is tagged on when purchasing insurance, many drivers will find that they do not pass the initial inspection, meaning they will have to do work on their car, and this is going to add to the cost of registering their vehicle annually.
So many factors go into determining the rates that will be paid upon registering a car. If it is new, the registration fees are higher, but it is a guarantee that you will pass the safety inspection. If you have a older car, renewal rates are cheaper, but you might have to do repair work, prior to passing the safety inspection. The price of your CTP coverage can also greatly affect how much you are going to pay, when it comes to registering and renewing your vehicle, and bringing your insurance coverage up to date on the vehicle as well.
In short, you will pay more in New South Wales than you will in Queensland, when you are registering and getting the insurance rates for your car. But, the actual insurance rates, in terms of CTP, and additional coverage, will greatly depend on which insurance provider you go through as a driver, and how long you are willing to take, to compare rates before you buy. If you compare several insurance providers, it is likely that you can get more coverage, for less, and greatly reduce the rates that you will pay for your protection, when driving in your respective state.
James Williams is a regular writer about insurance and based in Melbourne, Australia.
