Oof... Australia - Ins. Co. voids policy payout after son wrecks Dad’s S550

[Pittpa]

The story said probationary, but I think they meant provisional. I think you get your learner's permit first, then your provisional, and after 3 years with a provisional license, you can apply to get a standard license, but don't quote me on that.

Seems so. The video said he was on his "green p " license. That is designated P2 in New South Wales from what I read. Cars with a specific power to weight ratio are excluded in addition to a list they have of other cars.

https://www.rms.nsw.gov.au/roads/licence/driver/p2/index.html

Prohibited vehicles

Prohibited vehicle conditions apply to provisional licence holders to keep novice drivers safe on our roads.

From 1 August 2014, a high performance vehicle is defined as a vehicle which:

• Has a power to tare mass ratio (PMR) of greater than 130 kilowatts per tonne or
• Has had a significant engine modification (PDF, 262Kb), or
• Is listed in the Transport for NSW document Novice Driver- High Performance Vehicle Restrictions as a high-performance vehicle.

They also prohibit some Ecoboost mustangs for P drivers If you have time, you can go here and look at what P drivers are not allowed to drive.

https://www.rms.nsw.gov.au/roads/licence/driver/p1/clause-32-list.html

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[hellohello123]

I don't know anything about non US auto insurance or their particular policy but if the kid took it for a joy ride without the parents knowledge or consent isn't that the same as stealing it? What if it had been a random friend of the family or a niece/nephew? Without knowledge or consent seems like theft to me no matter if it is a son. Also, the "kid" is 20, isn't the age of majority 18 there. Which seems to me would make him legally responsible for his own actions. What would have happened had he taken someone else's car?
Of course the parents probably would have to press charges so he'll probably get away with minimal consequences is high.

This is what happened to me recently when applying insurance in aus for my mustang.

After going throguh the usual questions, they asked me if I would like to nominate a driver, I replied no, and then they said, be aware that no other household members are covered at all,

So no one in my family who lives with me is covered unless I nominate them as authorised drivers,

Im taking a wild guess but it's to prevent one responsible person taking insurance, and having the entire family drive it and be covered

 

[Zooks527]

well... apparently a few people here don't know how an insurance company operates...

a normal policy will have primary drivers and authorize drivers...

That's very dependent upon the state. In MA, as an example, locally chartered insurance companies (and many nationals) will follow standard MA practice and not let you exclude people in your household (exceptions such as kids at college exist). So, everyone in your household is covered, as is a licensed driver you temporarily allow to drive your car. I had to jump through hoops (and eventually get a separate policy for the sports car my wife never drove) to keep our premiums from going through the roof after she had a 2 mph fender bender where the other driver insisted on calling the cops and immediately claiming on his insurance. Our in-state companies and agents wouldn't hear about excluding someone living in the house from one of the cars.

 

[Zrussian13]

I totalled my parents car at 15 years old here in AZ. Insurance company paid out for the vehicle and yard I destroyed but still refuses to insure me 23 years later. Talk about holding a grudge! Funny thing is that was my last at fault accident, at least one that involved anyone else or went through insurance! They could have easily made their money back over the years!

 

[S550 HPP]

Well, I didn't even have a car when I was 20. When I went home for the summer from the university I had to bum my mom's Grabber Blue '72 Pinto. Never wrecked it or exploded into flames.

 

[WILDB]

Aussie Mustang owner here.

Basically how insurance works over here is that your policy is for the specific vehicle - some companies make you nominate specific drivers on the policy, whereas others will allow anyone with the appropriate licence class to drive the vehicle, however in some cases they may have to pay a higher deductible if they have an accident.

In all bar one state over here, the Mustang is deemed a high powered car by the DMV of those particular states, so people on 'provisional' or P licences aren't allowed to drive them whatsoever. Basically provisional licences are for the first 3 or so years after a young person gets their licence, after that, they have an 'open' licence and can drive whatever car they like.

In this case, the son was not licenced to be able to drive the Mustang, so insurance wouldn't cover him. The only way the father could get it covered would be to file a police report that the car was stolen and press charges - I'm guessing he doesn't want to do that.

 

[Pittpa]

I totalled my parents car at 15 years old here in AZ. Insurance company paid out for the vehicle and yard I destroyed but still refuses to insure me 23 years later. Talk about holding a grudge! Funny thing is that was my last at fault accident, at least one that involved anyone else or went through insurance! They could have easily made their money back over the years!

I thought the Look-back period for underwriting was only a few years.

 

[Jimmy]

If I ever have a kid I'm buying him the slowest car I can find. Letting a 20 yr old drive even a base Mustang GT is dumb, let alone a 700 hp one. Most people that age don't have the self discipline to avoid doing something stupid. Lucky he wasn't killed.

 

[GP2017GT]

No, it means if you willingly hand the keys to someone who isn't authorized to drive the car and they crash it, you bought it.

Ding, ding, ding. That would be my understanding too.

 

[Pittpa]

If I ever have a kid I'm buying him the slowest car I can find. Letting a 20 yr old drive even a base Mustang GT is dumb, let alone a 700 hp one. Most people that age don't have the self discipline to avoid doing something stupid. Lucky he wasn't killed.

My brother let me drive his '68 and '70 GTO's when I was in high school. Bias tires, lousy brakes and handling. Fun. Somehow I survived through minimal skill and maximum luck. Never crashed either one. Both were gold and stood out. He got several reports on my driving in the local area from his many friends.

 

[Zooks527]

If I ever have a kid I'm buying him the slowest car I can find. Letting a 20 yr old drive even a base Mustang GT is dumb, let alone a 700 hp one. Most people that age don't have the self discipline to avoid doing something stupid. Lucky he wasn't killed.

For our kids, their first cars were runout junkers that we made sure had good tires and good brakes. That way, they can find all the corners and edges of the cars while they're still learning.

 

[RIBS]

The US has similar setups depending on state. My wife works in insurance and I hear stories all the time. Not covered is not covered, you gotta read every line of your policy and understand it.

One thing I noticed on mine, USAA covered aftermarket and add on items up to $3k. Farmers only covers the aftermarket parts IF they exceed manufacturer original equipment cost. So if I replaced my Ford hood with a cheaper aftermarket hood, it’s not covered. Same with wheels, radios, etc....

 

[tnk_2]

I don’t know anything about insurance in Australia, but here in the us insurance is depend on the policy you buy. For me, all my household members are on the policy, so any can drive any vehicle. It is expensive asf, but I don’t have to worry someone not being cover. Also, insurance is go with you cause I can rent a car rental and my insurance will cover it. I verified that with my insurance ahead of time. State Farm and farmers cover me when I rent a rental car.

 

[Pittpa]

I don’t know anything about insurance in Australia, but here in the us insurance is depend on the policy you buy. For me, all my household members are on the policy, so any can drive any vehicle. It is expensive asf, but I don’t have to worry someone not being cover. Also, insurance is go with you cause I can rent a car rental and my insurance will cover it. I verified that with my insurance ahead of time. State Farm and farmers cover me when I rent a rental car.

Yes, typical US policy covers insured car for any driver with permission, and covers insured person for any car they drive with permission, like a rental car. My brother wintered his car in his garage. I do not live with him. I was able to drive it to take it to the shop because my insurance covered it in full, just as it would a rental car. It met the definition of an non-owned-insured vehicle in the policy because I had permission to use it.
Policies vary as to operators without valid license.

 

[Weyland-Yutani]

The only way the father could get it covered would be to file a police report that the car was stolen and press charges - I'm guessing he doesn't want to do that.

I would at least make the kid think I was considering it

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