You can buy, register and insure a car without a driver’s licence in Australia. But you won’t be covered if you’re involved in an accident when illegally driving the car without a licence.
Most Australian states and territories handle car registrations slightly differently, including what happens when you don’t have a driver’s licence. For example, you can buy and register a car in New South Wales (NSW) without a licence, but you’ll first need to apply for a customer number with Service NSW by providing proof of identity to a service centre. Consider contacting the relevant authorities in your state or territory for more details of their car registration process.
Even if you don’t have a driver's licence, you’ll still need to take out Compulsory Third Party (CTP) insurance to buy and register a car in Australia. This insurance (sometimes known as a green slip) covers the cost of medical bills to third parties if your car is in an accident. In the Australian Capital Territory (ACT), CTP insurance is called MAI (Motor Accident Injuries) insurance, but otherwise plays the same role.
You could also choose to take out fire and theft insurance for cover against accidental damage, crime and vandalism, even if you’re unlicensed and don’t drive your car. Fires and theft cover is often cheaper than a comprehensive car insurance policy, though its coverage is less thorough.
If someone else regularly drives a car you own, you could take out a car insurance policy such as comprehensive car insurance, which should cover damage to your vehicle due to fire, theft, vandalism, or a road accident. You may also want to list this driver on your policy, or you might have to pay an additional excess for an unlisted driver if you need to make a claim.
Whether you’re applying for CTP, fire and theft, or comprehensive car insurance, the process will likely be similar whether you have a driver’s licence or not. While a driver’s licence may not be an essential requirement, it can often streamline the application process compared to other types of identification. With some insurers, you may not be able to apply for insurance online without a licence, and may have to call or visit a branch in person instead.
The best type of car insurance policy for you will depend on your personal and financial situation. It’s important to compare car insurance quotes before making your final decision and to consider both the cost and the value being offered to determine if the policy will be right for you, now and in the future.
This article was reviewed by Peter Terlato before it was published as part of RateCity's Fact Check process.
