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Does your insurance cover other cars you drive?
Most car insurance policies in Australia are associated with a car, not a driver. Even if you’ve insured your own car, this policy usually won’t apply if you’re driving another vehicle, such as a friend’s car or a rental. It’s important to check what’s covered before you get behind the wheel, just in case.
Whose insurance applies when you drive your friend’s car?
Imagine you’re helping a friend move house, and you’ve agreed to drive their car while they drive the moving truck they’ve hired for the day. While taking boxes from one property to the next, you’re involved in a car accident. No-one is hurt, but whose insurance policy should you make a claim with – yours, or your friend’s?
In many cases, it’ll be your friend’s car insurance policy that applies. A comprehensive car insurance or third-party car insurance policy is typically associated with a vehicle, which will have one or more drivers named in the policy. If you’re driving your own car, you’ll be covered if you’re in an accident, but not if you’re driving someone else’s car.
Even if you aren’t named as a driver on your friend’s car insurance policy, your friend should still be able to make a claim. However, they may need to pay an additional excess for an unlisted driver, plus any extra excesses if you are under 25 and/or have less than 2 years driving experience.
Non-owner car insurance
In some countries such as the USA, you may be able to add non-owner car insurance to your own policy, which provides limited liability coverage if you drive someone else’s car, but doesn’t cover damage to the vehicle, replacement rental or medical expenses. However, non-owner car insurance is not commonly available in Australia.
Temporary insurance
If you’ll be driving a car that you don’t own for a limited time, you may be able to take out a short-term insurance policy to make sure you’re fully covered. This could be a typical comprehensive car insurance policy paid on a fortnightly or monthly basis that you cancel after you’re finished with the car. Or it could be a Pay As You Drive policy where you only need to pay for the kilometres you think you will be driving in a certain period.
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if written off before 2 years
Standard
- New car replacement
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if written off before 2 years
Optional
Comprehensive
- New car replacement
- Flexible excess
- Roadside assistance
Either
if written off before 2 years
Optional
Comprehensive
- New car replacement
- Flexible excess
- Roadside assistance
Agreed
if written off before 2 years
Not available
Comprehensive
- New car replacement
- Flexible excess
Product database updated 17 May, 2024
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Comprehensive
- New car replacement
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Roadside assistance
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Comprehensive
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Agreed or market value
Either
Roadside assistance
Optional
Comprehensive
- New car replacement
- Flexible excess
- Roadside assistance
Agreed or market value
Either
Roadside assistance
Optional
Comprehensive
- New car replacement
- Flexible excess
Agreed or market value
Agreed
Roadside assistance
Not available
Product data updated on 17 May 2024
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