Can I get car insurance under my parent's name? | finder.com.au

Can I get car insurance under someone else’s name?

Want to get car insurance under your parents name? Need to insure a car that's not registered under your name? Find out if it's legal and what you should do.

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It might be tempting to just insure your car in someone else's name who has more experience than you. But this is called car insurance fronting and is considered insurance fraud. There are other options though.

Can you insure a car that is not registered in your name in Australia?

Yes, but only if you are the primary driver of the vehicle.

For instance, you can get car insurance under your parents' name if you are simply an additional driver. If you're the main driver but you list someone else, this is car insurance fronting and it's technically insurance fraud. Plus, if you're involved in an accident and you need to file a claim, chances are your claim will be rejected or worse (getting convicted of fraud in NSW carries with it a maximum prison term of 10 years).

Generally, you can only get car insurance under a more experienced driver's name when that person is the primary driver of the vehicle.

Putting your name on your own car insurance policy isn't all doom and gloom though. The sooner your name is on one, the sooner you can start raking up time for a no-claims discount, which can save you heaps of cash in a few years.

You can insure a car that isn't registered to your name if you're the primary driver of the vehicle.

You can't get someone else to insure your car (like mum, dad, or your partner) if you're the main driver.

Insuring a new car? Make sure you compare 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 2019 Finder Award for the Best Value Car Insurance, this policy offers solid coverage at a low cost plus you will get 15% discount on first year's premium when you take out a policy online. Budget Direct’s claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics, so you don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: Coles have two-tiers of comprehensive car insurance to choose from. You'll 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 you're over 30, you can get roadside assistance free for a year.

Who it might be good for: Coles customers and Flybuys collectors.
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
Woolworths Comprehensive
Optional
Agreed or Market
Finder's summary: Woolworths catches our eye due to some unique perks like a price-beat guarantee, where it'll beat any current comparable comprehensive renewal notice if you're over 25. You'll also get 10% off your grocery shop once a month and can add roadside assistance onto your policy for just $7.35 per month.

Who it might be good for: Woolworths shoppers and those that want to take advantage of its price-beat guarantee.
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. Plus earn Qantas Points for joining and paying your premium. Sign up by 2 May 2021, you can earn up to 30,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.
ahm Comprehensive
Optional
Both
Finder's summary: ahm comprehensive car insurance lets you choose higher excess to reduce your premiums plus you can get up to 15% off when you purchase a new car insurance policy. T&Cs apply. Additionally, their Fixed Kilometre Plan can save you up to 30% compared to their standard comprehensive cover.

Who it might be good for: People who drive less than 15,000 km per year.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price. Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs Apply.
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2020 Award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement. You can also 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.
Stella Comprehensive
Optional
Agreed or Market
Finder's summary: Stella’s a female-focused insurer. It'll cover you if your car is damaged as a result of domestic violence. It offers higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats. Get $50 cash back when you purchase online between 1 April – 30 June 2021 using the code STELLA50. T&C apply.

Who it might be good for: Someone who wants a female-centred car insurance policy (it will cover men too).
Youi Comprehensive
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
Real Comprehensive
Optional
Agreed or Market
Finder's summary: Real Comprehensive Car Insurance provides similar coverage to other insurers for the important stuff like looking after your car if it's stolen or you crash. They're also one of the few insurers who offer a Pay As You Drive policy, so you might be able to save big if you don't drive much.

Who it might be good for: Those that don't drive much can take advantage of their Pay As You Drive policy.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
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How to get car insurance under someone else's name (without committing fraud!)

Rather than getting an older or more experienced driver to take out a policy in their name and risking being caught for car insurance fronting, if they are the owner of the vehicle, you're better off getting listed on their policy as a nominated or occasional driver. Typically, it's fine as long as the main driver of the vehicle is the actual policyholder.

In other cases, if there's more than one main driver, then it might be worth getting a joint car insurance policy. This may or may not be cheaper than simply taking out your own car insurance.

Young drivers looking to get on their parent's car insurance policy

Generally, the main driver must be the person who drives the car the most so as long as that is a parent, you're generally fine. If your parent is the main driver of the insured car, and you're just an occasional driver, then you can generally just use your parent's insurance to drive it. If you're the only main driver, or the only driver at all, then you will generally need to take out your own car insurance, and can't get insured under your parent's name.

What happens if an unlisted driver has an accident?

This is worth knowing, because it might be able to help you save on car insurance, and because it’s relevant if you’ll be driving under your parent’s car insurance as one of the vehicle’s occasional drivers.

Depending on the policy, car insurance might:

  1. Fully cover anyone who drives that car
  2. Cover everyone, but incur an additional excess for anyone not nominated as a driver
  3. Only cover specifically nominated people to drive that car

Often you’ll be able to choose which of the three you want your car’s insurance policy to do, although the range of options available might vary between insurers.

If you don’t tick any boxes or make any decision, it might default to either option 1 or 2, in accordance with the policy’s terms.

As you can probably guess, option 1 often has higher premiums because it essentially gives free rein for anyone to drive the car, while option 2 is often somewhat cheaper. Option 3 is often the cheapest, but means anyone who’s not listed on the policy won’t be covered while driving the car.

If viable, you or your parents may want to restrict drivers, with option 3, to help lower car insurance premiums.

What happens if I’m the main driver, but get car insurance under my parent’s name?

Even if it does help you save on car insurance in the short term, car insurance fronting is typically not worth the risk. Either way you’ll still be paying for car insurance, so you might as well get cover that can work more reliably.

If you want cheap cover, you might be better off simply getting cheap and all-important third party property damage liability insurance. It might cost just as much as a fronted comprehensive policy, but could deliver a much more reliable level of the most important cover.

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