Could Motorists Receive a Refund for Car Registration and Insurance Costs?
As the impact of the Coronavirus continues to play havoc on our day to day lives, roads are still largely empty compared with normal traffic levels. It’s hardly unsurprising, however.
On the one hand, we’ve been told to stay home unless going out for one of few “essential” reasons, and on the other hand, in the parts of the country where restrictions are starting to be lifted, that doesn’t mean jobs will come back any time soon. Given these changes, our cars are seeing much less usage than they normally might.
But what does that mean for some of the significant costs we bear each year as part of having our car on the road? For starters, we’re paying registration to have our vehicle authorised and approved for roadworthiness, yet we are discouraged (or even fined!) from taking our wheels out. Similarly, insurance is for the most part designed to mitigate any risk associated with an accident, but we should feel pretty comfortable there won’t be any collisions when our cars are parked up in the garage.
Should drivers be eligible for a refund?
If you ask thousands of Australian motorists, apparently, the resounding answer is ‘yes’.
In recent days, one online price comparison company has started a petition making the point as to why shouldn’t Australians be eligible to receive a refund on a portion of their unused car registration and insurance costs?
Quite predictably, the response has been overwhelmingly positive. After all, times are tough at the moment and we could all do with a little extra money in our pockets.
But is it likely that government and insurers would budge?
According to some, the principle of ‘fairness’ goes some way to underpin the request for a partial refund. And sure, if either state governments or insurers are feeling charitable, the prospect certainly can’t be ruled out.
However, we also have to put into perspective broader efforts being made by all levels of government. From health care costs, to support for businesses, jobs and the significant ‘benefits’ payments being distributed to support people who receive subsidies and/or find themselves impacted by a change in employment circumstances. This means that government debt is set to balloon. Believe it or not, we’ll all be paying for that soon enough.
What is also missing from this equation is a ‘benefit’ that motorists have seen offset their car expenses. That is, the overwhelming majority, if not all drivers have seen a significant reduction in running costs. Petrol prices have plummeted in recent weeks, not to mention, most of us are driving nowhere near as much as we normally might. On top of that, a reduction in wear and tear can only help delay some costs arising from repair work.
In light of this benefit relating to lower petrol costs, the federal government will also lose a chunk of its fuel excise intake due to refiners and petrol operators shifting less fuel. And ultimately, this fee is more linked to your driving activity than say, registration, which would still normally apply even if you were not using your car or out of the country.
Although insurance refunds could be on the agenda – especially if there is enough of a vocal push from insured motorists – even here, we have to consider, your car is meant to be insured even when it’s not being driven, in case of fire and theft, or for that once a week trip to the supermarket.
We can all hope for a better-than-expected outcome as far as partial refunds go, but let’s realise the principle of ‘fairness’ is merely a cover for that request.
Level 2, 9 Help Street