Insuring Your New Ride

Registering and insuring a vehicle can be a complicated process, with different requirements depending on the state or province. In most states, you must purchase insurance coverage before registering your car. This means providing proof of insurance or financial responsibility, although some states don't require this. An insurance card or printout is usually sufficient, but each state has its own regulations and requirements, so it's important to check the specific rules for your area. For example, in Ontario, you need insurance, a permit proving ownership, and licence plates with up-to-date validation stickers.

Requirements for vehicle registration

The requirements for vehicle registration differ depending on the state/territory. Here are the general steps and requirements for registering a vehicle in Queensland, New South Wales, South Australia, the Australian Capital Territory, and Texas.

Queensland

If you buy a new or used vehicle from a dealership, the dealer will usually organise the registration and Compulsory Third Party (CTP)/Motor Accident Injuries (MAI) insurance for you. However, if a motor dealer has not arranged the registration, or if you buy a vehicle privately, you must complete the new registration at a transport and motoring customer service centre.

To register a vehicle in Queensland, you will need the following:

• Evidence of identity for all registered operators, such as a Queensland driver's licence or another card issued by the Department of Transport and Main Roads. If you don't have a Queensland driver's licence, you may need to bring other forms of ID, such as an Australian birth certificate, credit card, and Medicare card.
• Evidence of where the car will be garaged in Queensland, such as a current driver's licence, rates notice, or utility bill issued within the last six months.
• If your car is unregistered, you will need to contact a CTP insurance provider and obtain a CTP insurance certificate. You must keep this certificate in the car when driving.
• A Queensland safety certificate (formerly known as a roadworthy certificate) from an approved inspection station.
• If your car has been written off, it needs to be inspected by the Queensland Inspection Service.
• If your car has a gas fuel system or gas appliances, you will need a certificate from a gas installer.
• If your car has been modified, you will need to obtain a modification plate from an approved person.

Once you have the required documents, bring them to a customer service centre to complete the registration process.

New South Wales

If you buy a used vehicle that is not currently registered in NSW, you must first have the vehicle inspected at an Authorised Unregistered Vehicle Inspection Station. If the vehicle is modified or non-standard, you will also need a Compliance Certificate from a licensed certifier.

After the vehicle has passed inspection, you must organise CTP Green Slip Insurance over the phone prior to registering your vehicle. Once payment is made, your Green Slip will be sent to Transport for NSW (TfNSW).

Finally, take all the required documents to a service centre to complete the registration process.

South Australia

To register a new light vehicle in South Australia, you will need to attend Service SA with the following:

• An application for registration and third-party insurance.
• Proof of purchase of the vehicle, such as an invoice or other evidence of purchase from a motor vehicle dealership.
• Proof of identity, such as a current driver's licence.

Australian Capital Territory

To register a vehicle in the ACT, you will need to:

• Organise an inspection at an approved inspection station or by contacting Access Canberra.
• Bring all the required documents, including proof of ownership and proof of residency, to an Access Canberra centre to complete the registration process.

Texas

In Texas, you have 30 days from moving to the state to register your vehicle. Here are the steps to register your vehicle in Texas:

• Take your vehicle to a certified Vehicle Inspection station and obtain a passing Texas inspection. Bring your insurance card as proof of insurance.
• To obtain your Texas license plates and registration sticker, visit your local county tax-assessor collector office. You will need the following:
• Your insurance card.
• The Vehicle Inspection Report issued by the inspection station.
• Proof that you own the vehicle, such as the registration or title from your previous state. You may also show a current foreign/military ownership document or foreign evidence of ownership.
• If your insurance policy was issued in another state, you will need to bring the entire policy to verify insurance coverage minimums.
• Fill out and complete the Application for Texas Title and/or Registration (Form 130-U).

Proof of insurance

In most states, proof of insurance is also available in electronic form, which can be shown to law enforcement if you are pulled over. However, New Mexico does not accept electronic proof of insurance during a traffic stop.

The information provided on a proof of insurance includes:

• Insurance company's name and address
• Effective date and expiration of the policy
• Policy number and National Association of Insurance Commissioners (NAIC) number
• Policyholder's first and last name
• Insured vehicle's year, make, model, and vehicle identification number (VIN)

If you lose your insurance card, you can download a digital copy from your insurance company's app or website, or contact your insurance agent to send you an updated copy.

Failure to provide proof of insurance is a different offence from driving without insurance, which is a more serious offence. However, both can result in fines, license suspension, higher insurance rates, and even jail time, depending on the state.

Purchasing insurance coverage

Know the Legal Requirements

Before purchasing insurance, it is important to understand the legal requirements for your state. Most states require proof of insurance or financial responsibility to register your vehicle and obtain tags. Only Arizona, Mississippi, New Hampshire, North Dakota, Tennessee, Washington, and Wisconsin do not mandate insurance for registration. However, all states, except New Hampshire, require basic liability coverage to operate a vehicle. New Hampshire requires proof of financial responsibility, which means drivers must demonstrate they can cover accident costs.

Understand the Types of Insurance

When purchasing insurance, you have two main options: liability-only insurance or full coverage insurance. Liability-only insurance covers the minimum requirements by your state and protects you from financial liability in case of an accident. Full coverage insurance includes liability insurance and additional protections, such as collision and comprehensive insurance, which cover the cost of repairs or replacements for your vehicle. If you are leasing or financing your vehicle, you will likely be required to have full coverage insurance.

Shop Around for Quotes

It is recommended to compare insurance quotes from multiple providers to find the best rate and coverage for your needs. You can use online tools and calculators provided by insurance companies or third-party websites to get an estimate of the cost. Remember to consider factors such as your location, age, vehicle type, and driving record when obtaining quotes.

Gather Necessary Information

Before finalising your insurance purchase, make sure you have all the necessary information about your vehicle and yourself. This includes the vehicle's make, model, Vehicle Identification Number (VIN), mileage, and your driving record. Having this information readily available will streamline the application process and ensure you receive an accurate quote.

Consider Additional Coverage Options

In addition to the basic insurance requirements, you may want to consider adding optional coverages to your policy. For instance, gap insurance covers the difference between the remaining balance of your car loan or lease and the current market value of your vehicle if it is totaled or stolen. Other options include new car replacement coverage, which ensures you receive a vehicle of the same make, model, and value if yours is totaled, and personal injury protection, which covers medical expenses for you and your passengers in the event of an accident.

Inform Your Insurer of Any Changes

If you already have an insurance policy and are purchasing a new vehicle, be sure to notify your insurance company. Your rates may change, and they can guide you through any necessary adjustments to your coverage. It is also a good idea to inform your insurer if you make any significant modifications to your vehicle, as this may impact your coverage.

Vehicle insurance types

There are several types of vehicle insurance, and most people don't need all of them. The type of insurance you choose will depend on your needs, budget, and state requirements. Here are some of the most common types of vehicle insurance:

• Liability insurance: This is required in almost every state and covers damages for bodily injury or death resulting from an accident for which you are at fault. It also includes property damage liability, which covers the cost of repairing damage to other vehicles, fences, mailboxes, or buildings that you may have caused. Liability insurance limits are usually written as three numbers, for example, $100,000 bodily injury per person, $300,000 total payout for all bodily injuries, and $50,000 total payout for property damage.
• Personal injury protection (PIP): This covers your medical expenses after a car accident, regardless of who was at fault. It may also cover funeral costs, child care, or lost wages due to injuries from an accident. PIP is required by law in 17 no-fault states.
• Medical payments coverage (MedPay): Similar to PIP, MedPay covers medical expenses for you and your passengers after an accident, regardless of who was at fault.
• Uninsured motorist coverage: This pays for expenses that result from an uninsured driver hitting you. According to a 2021 study, about 1 in 8 drivers did not have car insurance.
• Underinsured motorist coverage: This pays out when the at-fault driver's insurance limits are too low to cover all the injuries or damage they caused.
• Collision coverage: This pays for damage to your car after an accident, regardless of who was at fault. It also covers damage to your car from hitting a pothole or an object like a pole or tree.
• Comprehensive coverage: This covers damage to your car from incidents other than a car accident, such as theft, vandalism, storms, floods, falling objects, explosions, earthquakes, or hitting an animal.
• Other optional coverages: These include rental reimbursement, roadside assistance, new-car replacement insurance, full glass coverage, rideshare insurance, mechanical breakdown coverage, custom parts and equipment value coverage, classic car insurance, and business or commercial auto insurance.

When choosing an insurance policy, it's important to compare rates and coverages to find the best option for your needs and budget.

Registration and insurance in Ontario

Registering and insuring a vehicle in Ontario involves several steps and requirements. Here's a detailed guide to help you through the process:

Insurance Requirements:

Before registering a vehicle in Ontario, you must purchase auto insurance from a private insurance company. Ontario has compulsory automobile insurance laws, which means every vehicle registered in the province must be insured. The minimum requirement is third-party liability insurance of at least $200,000, which covers you in case you injure or kill someone or damage someone's property while driving. Collision insurance, which covers damage to your own vehicle, is not legally required but is recommended.

Vehicle Registration:

Vehicle registration in Ontario involves obtaining a vehicle permit, a licence plate, and a sticker. You can register your vehicle at a ServiceOntario centre or, in some cases, through the dealership where you purchased the vehicle. The process and requirements differ for new and used vehicles:

• New Vehicle Registration: When buying a new vehicle from a dealership, the dealership representative usually handles the registration process. They will provide you with the necessary paperwork, a new licence plate, and a plate sticker. Some dealerships may charge a small fee for this service.
• Used Vehicle Registration: Registering a used vehicle depends on where you purchase it. If you buy from a dealership, they might handle the registration as they would for a new car. If you buy from an independent seller, you must register the vehicle yourself within six days of the purchase.

Documents and Requirements for Registration:

To register your vehicle, you will need the following documents and information:

• A valid Ontario driver's licence or a registrant identification number (RIN) if you don't have a driver's licence.
• Proof of identity, including your legal name, date of birth, and signature.
• A completed used vehicle information package (for registering specific vehicle types).
• Proof of purchase, such as a receipt or bill of sale.
• Proof of insurance from an insurance provider licensed in Ontario.
• The original vehicle permit from the seller with the transfer portion completed.
• The licence plate portion of the permit if you already have a licence plate you want to attach to the vehicle.
• For a leased vehicle, you may need a copy of the lease agreement or invoice and a letter from the leasing company.

Fees and Payments:

There are fees associated with registering a vehicle in Ontario. The standard fees are as follows:

• Vehicle permit: $32 (required for all vehicles)
• Licence plate with registration permit: $59 (for new and replacement plates)
• Motorcycle registration: $42 for one year in Southern Ontario and $21 for one year in Northern Ontario.

Temporary Permits:

If you are visiting Ontario and need to drive a car temporarily, you can obtain a special temporary permit that allows you to drive an unregistered vehicle for a short period. These permits are typically valid for up to 10 days, and you can obtain them online or by visiting a ServiceOntario centre.

Keeping Your Registration Up to Date:

It is essential to keep your vehicle registration up to date. You must renew your licence plate or sticker annually and update your vehicle permit within six days of any change in your address or vehicle information. Additionally, if you lose, damage, or have your vehicle permit stolen, you can easily obtain a replacement by visiting a ServiceOntario centre.

Frequently asked questions