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How does car insurance in Australia cover additional drivers?

You might be covered if an unlisted driver gets into an accident in your car, but there are some conditions to be aware of. 

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There are car insurance policies out there that will provide cover for a friend or family member, even if they're not nominated on your policy. Some insurers offer you cover for an unlisted driver but they usually come with an unlisted driver excess. Others will simply refuse to cover unlisted drivers, so it pays to know when this might apply to you.

Does car insurance cover additional drivers?

Yes but coverage varies between car insurers. You might find that one insurer will cover anyone who drives your car even if you haven't nominated them on your policy, while others will likely charge an extra excess in addition to other excesses. This is also usually the case if the additional driver is under 25, or over 25 but has less than 2 years driving experience.

In the majority of cases, you will need to list all drivers on your policy who regularly use the car. If you don't, you risk a reduction or refusal of a claim. So you can't put a car insurance policy in your name if someone else is the main driver. This is called car insurance fronting and it's illegal.

How do insurers treat additional drivers?

Depending on who you are with, you may have to pay an additional excess for other drivers in the event of a claim. These insurers, for example, provide the following cover:

  • Bingle: Unless you list them on your policy, you will have to pay an additional excess on top of your standard excess for claims made for loss, damage, or liability by household members or regular drivers using your car. An unlisted household member or unlisted regular driver excess will be in the region of $1,950.
  • Huddle: There is an undeclared driver excess if the driver is under 25 and hasn't been declared as a driver. This also applies to inexperienced drivers, for example, anyone who has not held a driver's licence that is valid in Australia for more than 2 consecutive years. It comes with an excess of $800. Excesses for drivers aged 21 to 24 are $1,600 and $2,000 for drivers under 21.
  • Budget Direct: Additional drivers under the age of 21 will have to pay a $600 excess and drivers aged 21 to 24 will need to pay $500 in the event of a claim. Drivers who haven't held a full Australian licence for at least 2 years will have to pay $500, while unlisted will pay $600.
  • Youi: Youi has a driver specific excess for unlisted drivers and young drivers, regardless of whether they are a regular or listed driver.
  • Virgin: Additional excesses apply when the car is driven by a person who is not excluded but who is not listed as an additional driver. They also apply if they are under 21 ($600), aged 21 to 24 ($500), have not held an Australian licence for at least 2 years ($500) and are not listed on the policy ($600).
  • AAMI: If the driver is 25 years or over but has held their driver's licence for less than 2 years and are listed on insurance, the excess is $400. If they are not listed, the inexperienced driver excess is $1,400.
  • Coles: There is an inexperienced driver excess of $400 (for drivers in NSW, ACT, Victoria, Queensland, NT) and $300 (for drivers in WA, SA, Tasmania) which applies when the driver of the car has not held an Australian driver's licence for more than 2 years and is 25 or older. There is also an age excess which is $800 for those under the age of 21 and $450 for those between 21 and 24 years of age.
  • Woolworths: There is an additional excess for an undeclared young driver under the age of 25 of $800. For drivers aged 21 and below 24, an age excess of $800 will apply. For drivers below 21, the age excess is $1,200.
  • QBE: There is an age excess of $1,500 for drivers aged under 25 and $900 for drivers aged 25 or over. For drivers under 25 that are not listed on the policy, the excess will be $2,500.
  • Bendigo: An age excess of $1,000 applies for drivers under the age of 20, $750 for drivers 20-21 years of age and $500 for drivers aged 22-24. Inexperienced drivers who are 25 years or older but have been licensed for less than 2 years will pay an excess of $750.
  • ahm: An age excess of $800 applies for drivers 21-24 years old. For drivers under 21, an excess of $1,200 applies. However, if the driver is a learner then the excess is $800. Inexperienced drivers (those aged 25 or over who have not held a valid licence for the last 2 years or longer) also have an excess of $800, however this excludes learners.
  • Qantas: An age excess of $600 applies for drivers under the age of 21. For drivers aged between 21 and 24, an excess of $500 applies. Drivers who have not held a full Australian licence for 2 or more years will need to pay an excess of $500. For any unlisted drivers, an excess of $600 will apply.

Are unlisted drivers still covered?

In most cases, yes. However, you will generally have to pay an additional excess if they are involved in an accident, which can be more than $2,000. There is also generally an age excess charge if they're under 25.

If someone plans to use your car regularly, then the best option is to list them as an additional driver; that way, you don't need to worry about the huge excess. Keep in mind though that there are some insurers who will charge you an additional excess regardless of whether they are listed or not. Some insurers also won't cover unlisted household members. Be sure to read your product disclosure statement to make sure there are no exclusions like this if you are an unlisted driver.

Does it matter if an unlisted driver gets in an accident?

If an unlisted driver has an accident, and you have given them permission to drive, you'll probably have to pay your standard excess as well as an additional unlisted driver excess in the region of $2,000. However, other policies will void your car insurance if a driver isn't listed. You should always check with your provider as to how listed and unlisted drivers are taken into account.

While CTP car insurance provides protection regardless of who is driving your car, some will only cover the drivers nominated on your policy. Some unlisted driver exclusions include no cover for damage, loss or liability arising out of the use of your car:

  • By any household member not listed on your car insurance certificate
  • If your car has an age restriction to help reduce your premium
  • By anyone driving your car without your permission, unless reported to the police

Do I need to list everyone that drives my car?

If someone plans to use your car frequently, you should list them on your insurance certificate. It's also a really good idea to list all household members, provided they plan to use the car, as car insurers might exclude unlisted drivers outright. The only time it's not worth listing someone on your car is if they rarely use it.

The easiest way to avoid unwanted additional excesses or a claim refusal, is not to let any unlisted person drive your car. However, if you live with someone who shares the car, it's probably worth listing them on your insurance certificate. You'll pay more but it provides them with the same services and protection as you. It could also save you heaps in the long run.

How do I add an additional driver to my car insurance?

If you already have a policy, you can phone your car insurance provider and ask to have an additional driver added to your policy. The insurer will usually be able to add them on straight away. Your premium will go up, especially if they're a younger or less experienced driver.

Alternatively, you can compare car insurance providers for a deal that works best for you. When you're filling out an application, you'll have the option of adding an additional driver to your policy. All you need to do is add their details and the insurer will calculate your premium.

Compare policies and get car insurance

Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Awarded the 2021 Finder Award for Car Insurance - Value in QLD, SA, TAS, VIC, WA and Car Insurance - Features in NSW, VIC, WA, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

⭐ Current offer: Get 15% discount on first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Youi Comprehensive Car Insurance
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If your car is damaged, you could benefit from a one-week turnaround on repairs.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2021 award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those that are looking for a more environmentally friendly insurance choice.
Bendigo Bank Comprehensive
Agreed or Market
Finder's summary: Bendigo Bank’s comprehensive policy offers up to $30 million in liability insurance, cover for your personal items and the option of a replacement car if your vehicle is being repaired after an accident.

Who it might be good for: Those who seek the peace of mind that comes with high legal liability and a range of cover benefits.
ahm Comprehensive
Optional
Both
Finder’s summary: ahm comprehensive car insurance lets you choose higher excess to reduce your premiums. Its Fixed Kilometre Plan can save you up to 30% compared to its standard comprehensive cover.

⭐ Current offer: Get free roadside assistance* for 12 months when you sign up by 30 June. T&Cs apply.

Who it might be good for: People who drive less than 15,000 km per year.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Woolworths Comprehensive
Optional
Agreed or Market
Finder's summary: Woolworths has some unique perks like a price-beat guarantee where it'll beat any current comparable comprehensive renewal notice if you're over 25. You can also get 10% off your grocery shop once a month and can add roadside assistance onto your policy for just $7.33 per month.

⭐ Current offer: Save up to 15% when you buy online. T&Cs apply.

Who it might be good for: Woolworths shoppers and those that want to take advantage of its price-beat guarantee.
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