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How to add a driver to your car insurance

How to add a driver to your car insurance

Most compulsory third party (CTP) insurance policies, which you need when registering your car, cover the liability of another person driving your car as well. Except when that person is under the age of 25 or doesn’t have sufficient driving experience. If, however, other family members or friends may drive your vehicle regularly, you should also include them as additional drivers on your policy. You may be required to pay an unlisted driver excess if you don’t add them to your policy, which can be higher than the standard excess so you should check with your insurer.  

How to add someone to your car insurance?

While many Aussie families may own multiple cars, they also share their vehicle with other drivers in the family or close friends from time-to-time. For this reason, it may be necessary to include more than one driver on the insurance policy bought for each vehicle. There may be extra costs involved in adding a driver to car insurance policies, so when comparing the policies online, you should check these costs.

The extra costs can include an additional excess, which is the percentage of your liability you choose to pay out-of-pocket, as well as possibly a higher premium. Adding a young driver, typically under 25 years old, to your car insurance policy can also mean paying a separate excess as well as a significantly higher premium.

You may be able to add new drivers to car insurance you already have by simply contacting your insurer either via phone or email. You should check your policy document or the Product Disclosure Statement (PDS) to see if the insurer has any specific conditions regarding adding new drivers. There may be restrictions on the people you can add to your policy. You may not be able to add a friend to your car insurance, for instance. 

What will adding a young driver to my car insurance policy cost me?

The costs involved in adding a young driver to your car insurance depend on the age and driving experience of the driver. Your insurer may charge you either a higher premium or ask you to pay an additional excess if they’re involved in an accident.

The car insurance premium can also depend on the gender of the driver and the age of the car. As an example, adding a male driver who’s less than 25 years old to a policy covering a used car will probably impact the premium the most. This would be because statistics show young males are at a higher risk of having an accident and an older car is likely to have fewer safety features. Equally, the additional excess for a driver aged under 25 can be as high as the excess for an unlisted driver. Your insurer is also more likely to deny a claim if the driver is unlisted, younger and less experienced than if they're unlisted but more experienced. 

Can I temporarily add someone to car insurance?

Ensuring that you list all potential drivers on your insurance policy is the smartest option. It doesn’t always make sense financially to add someone who is only borrowing your car for a short while. You can check to see if your car insurance policy covers anyone driving your vehicle, whether or not they are listed.

You may simply let them drive your car if you’re confident that they’ll handle your car responsibly, and are unlikely to get into an accident. If you prefer to be more cautious by adding them to your policy. You should check if your insurer allows you to add someone to your car insurance policy for a week, for instance, and if you need to pay any fees.

What information is needed to add a driver to insurance?

When you request to add a new driver to your car insurance policy, your insurer may ask you for virtually the same information you provided when buying the policy. This information may include: 

  • Drivers licence details - The insurer can use this information to get the other driver’s name, gender, and age.
  • Driving history - This history needs to cover the other driver’s experience as a driver or how long they have held their licence and any history of accidents, insurance claims.

If the other driver is under 25, the insurer may add an under 25 driver’s excess, over and above the excess mentioned initially in your policy.

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This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.

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