Driving an Unregistered Car in Victoria: Penalties Under Section 7

Driving an unregistered vehicle or trailer in Victoria is an offence under section 7 of the Road Safety Act 1986, carrying up to 25 penalty units for a first offence and 50 for a later one, and if the registration fee is not paid within 28 days of expiry, the owner and driver also lose the Transport Accident Commission's indemnity against being sued.

The offence: driving an unregistered vehicle or trailer in Victoria

Using an unregistered vehicle or trailer on a road in Victoria is an offence under section 7 of the Road Safety Act 1986 (Vic), offence if vehicle or trailer not registered. For an individual, the maximum penalty is 25 penalty units for a first offence and 50 penalty units for a second or later offence. For a body corporate, the maximums are five times higher, at 125 and 250 penalty units. At Victoria's 2026-27 penalty unit value of $209.10, an individual's maximum fine is $5,227.50 for a first offence and $10,455 for a second or later offence.

Section 7 also makes it an offence to own a motor vehicle or trailer that is used on a highway while unregistered. The offence does not apply to a vehicle that is exempt from registration under the regulations, or that is used as specified in a registration permit granted under the regulations. The fee and conditions for a registration permit were not verified for this article; contact VicRoads for permit details.

Registration and the 28-day TAC indemnity window

Victoria's registration fee includes the Transport Accident Commission (TAC) charge, Victoria's compulsory third party insurance. If the charge is paid by the expiry date, or within 28 days after it, the owner and driver are indemnified by the TAC against being sued for injury or death caused by the vehicle. If it is not paid within that window, the vehicle is unindemnified for any accident in the gap, and the owner or driver can be personally liable.

The 28 days is not a grace period for driving: the section 7 registration offence applies from the moment registration lapses. The owner of a registered motor vehicle must also pay the transport accident charge for each period, with a penalty of up to 5 penalty units (Transport Accident Act 1986 s109(1)). A separate 12-month definition of an uninsured motor vehicle in section 41B of that Act applies only to whether the TAC compensates the owner of an uninsured vehicle injured while it is driven on private land; it does not extend the indemnity.

Related Victorian driving topics

For registration offences and permits in every other Australian state and territory, see our unregistered vehicles in Australia guide. For how Victoria's Transport Accident Charge scheme works, including claims and benefits, see our Victoria motor accident compensation guide. For an overview of Victorian driving law topics, see our driving laws hub.

Frequently Asked Questions

What is the penalty for driving an unregistered car in Victoria?

Up to 25 penalty units for a first offence and 50 penalty units for a second or later offence under section 7 of the Road Safety Act 1986. At the current penalty unit value of $209.10, that is $5,227.50 for a first offence and $10,455 for a second or later offence.

Is an unregistered vehicle in Victoria automatically uninsured too?

Not if you pay within 28 days. If the registration fee, which includes the Transport Accident Commission (TAC) charge, is paid within 28 days of expiry, the TAC indemnity is treated as continuous; after that, the owner and driver lose it for any accident in the gap. The registration offence itself applies from the moment registration lapses.

Does the unregistered vehicle offence in Victoria apply to trailers?

Yes. Section 7 of the Road Safety Act 1986 applies to both vehicles and trailers.

What is the maximum penalty for a company driving an unregistered vehicle in Victoria?

A body corporate faces up to 125 penalty units for a first offence and 250 penalty units for a second or later offence, five times the individual maximums.