Should I Pay for Car Insurance and Registration at the Same Time?

After getting your first car, you may start to consider all the many ways you can save money on your car insurance. However, the savings begin as soon as you purchase your vehicle, and unfortunately, if you already have an unregistered car, you’ll pay more than you bargained for. With that in mind, let’s consider whether or not you should combine insurance with registration.

What Comes First? Insurance or Registration? 

Before you can register your vehicle, you’re required to take out Compulsory Third Party (CTP or Green Slip) car insurance in Australia. Therefore, you can only get car insurance when you also register your vehicle; you can’t have one without the other. Although CTP insurance is mandatory and can cover all registered cars, it doesn’t mean you should stick to this package for life.

In fact, it’s actually beneficial to car owners if they shop around a bit. You’ll likely find a comprehensive car insurance that offers better premiums. On top of that, you may want increased protection for your vehicle in case you get into an accident, or your car breaks down.

How do I Register my Car?

To register your car, you need to purchase or transfer a “Rego,” which is the document that identifies your vehicle. When you buy a Rego, you automatically receive CTP insurance unless you live in New South Wales, where you must buy insurance separately after you buy a Rego. 

Although it’s better to buy a car with a current Rego, you are able to choose the duration of the Rego (3, 6, or 12 months) if you have to purchase one. To transfer your Rego in person, you present your papers to the state/territory of registration. Only WA accepts mail transfers.

To register your car with a Rego, you must provide the receipt of purchase and the following:

  • Model Name
  • Model Make
  • Model Color
  • Model Year
  • Plate Number
  • VIN (Vehicle Identification Number)
  • Price of Sale
  • Date of Sale
  • Full name, address, and signatures of buyer and seller.

Now that you have a registration, you can purchase better car insurance.

Should I Pay for Insurance and Registration at the Same Time?

Your decision to pay for both your insurance and registration simultaneously is determined by how close you are to your registration expiry date. Here, we outlined why this matters:

Yes: If Your Registration Date is Close

Paying for your car’s registration and insurance at the same time isn’t just convenient; it can also save you money. Many car insurance companies will offer discounts on registration bundles. 

If you just purchased a car and the registration’s expiry date is coming soon, you can likely wait until you switch out of CTP. If you haven’t been bundling your car insurance and registration, but you already have comprehensive car insurance, now’s the time to start because you’ll save money.

No: Only if Your Registration Expiry Date is Far Off

However, if you’re buying a car that already has a registration and it expires in over 6 months, you may want to cut your losses and pay for better car insurance.

Compulsory Third Party Insurance only covers compensation payments for those injured or killed in a motor vehicle accident and nothing else. In the event of an accident, you’ll need to pay for the cost of both party’s damaged vehicles or property, which can be quite costly.

Third-Party Car insurance covers damage to another person’s property or car caused by the use of your vehicle. Even the most economical third-party car insurance options will prevent you from paying a significant amount of money out-of-pocket. On the other hand, comprehensive car insurance is the best option because it covers all of your bases, among other premium benefits.

If you plan on driving your car every single day, you can’t afford not to pay for extra coverage.

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