Does your son or daughter drive your car only every now and then? Do you think it's not often enough to warrant listing them on your car insurance policy?
It has long been the assumption that if your son or daughter only drives your car on occasion it is easier and cheaper to not list them on your car insurance policy. This is not always the case as some car insurance companies only cover your child – whether they will use your car once a year or twice a month – if they are listed as a regular driver on your policy.
This is of course dependant on the level of cover you have with your insurance provider and what is included in your comprehensive car insurance policy.
For instance, if your child drives your car and is involved in an accident, Cashback Car Insurance will not provide cover for damage to your car if the car is driven by any household members (or a person who normally resides with you) who are not listed on your insurance certificate. If damage is done to other people's property they will only extend the cover to other licensed drivers permitted by this policy and only if they have your consent.
While other providers may still offer cover for loss and damage to your property as well as other people's property, if your offspring is not listed on your policy this may cost you more.
NRMA, for example, will cover you or any driver of your vehicle provided they have your permission to drive your car. If they are at fault and aged under 25 or are older than 25 with less than two years' driving experience after obtaining a provisional or probationary license, then you may need to pay an age excess of around $1600 in addition to the standard basic excess of around $600.
If you add your youngster to your policy your premium will go up but your excess may decrease. For instance if you did this with your NRMA policy you will still have to pay the basic excess of $600 but the age excess may reduce to around $400, saving your around $1200 in excess alone.
If you are not sure whether you will need to add your child to your policy, make sure you read the product disclosure statement (PDS) as this will inform you what you are covered for.