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Adding a driver to car insurance

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

What you need to know

  • Many car insurance policies provide cover for a friend or family member, even if they are not nominated on a policy.
  • Others offer cover for an unlisted driver, but they usually come with an unlisted driver excess.
  • A further extra excess may apply if the driver is under 25. By listing the young driver, you may be able to save.

Does car insurance cover other drivers?

Yes, but depending on your insurer, when it comes to making a claim, you may have to pay an additional excess for other drivers if they were behind the wheel.

While some insurers will cover anyone driving your car, others will charge you the excess. Plus, an extra age-based excess may apply if the additional driver is under 25, or over 25 but with less than 2 years' driving experience. This premium can cost more if you haven't nominated the driver on your policy.

In most cases, you'll 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.

How car insurers deal with other drivers

BrandConditions
Bingle logo
  • 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 Logo
  • 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 Logo
  • Youi has a driver specific excess for unlisted drivers and young drivers, regardless of whether they are a regular or listed driver.
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  • 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.
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  • 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.
Everyday Insurance
  • 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.
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  • he unlisted driver excess changes based on the amount of the basic excess.
Bendigo Life Insurance Logo
  • 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.
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  • 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.
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  • 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.

This is accurate as of February 2024

What happens if a driver is not listed on your car insurance?

You will generally have to pay an additional excess if they are involved in an accident, which can be more than $2,000. Typically, there's also an age excess charge if they're under 25. You may have to pay a higher excess if the young driver wasn't listed on your policy.

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. But keep in mind, some insurers will charge you an additional excess regardless of whether they are listed or not.

Some will refuse to cover unlisted drivers altogether. So, it pays to know if this applies to you. Be sure to read your product disclosure statement (PDS) to be aware of any policy exclusions.

Finder survey: How many Australians share their cars with other drivers?

Response
No56.06%
Yes38.77%
Doesn’t apply5.17%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023

Does Compulsory Third Party (CTP) car insurance cover additional drivers?

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

You should always check with your provider, or read your policy's Product Disclosure Statement (PDS) as to how listed and unlisted drivers are taken into account.

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. It's also a 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 cover. 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.

Keep in mind that 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 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.

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Compare car insurance policies now

1 - 7 of 24
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance.

Who it might be good for: Those who want good customer service with lots of inclusions.
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

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

Who it might be good for: Anyone who wants a good value policy.
Bingle Comprehensive
Market
Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 40,000 Qantas Points with every car insured by 2 July. Plus save 15% on your 1st year's premium when you purchase online. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $100 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
ROLLiN' Comprehensive
Agreed
Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

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

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
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4 Responses

    Default Gravatar
    GaminiNovember 5, 2023

    My listed driver had accident at his fault. Is it effected my driving history and my insurance premiums
    Thanks
    Gamini

      AvatarFinder
      PetaNovember 6, 2023Finder

      Hi Gamini,
      There’s a chance this could affect your insurance premiums in future but this will vary between insurers and likely depend on who the listed drivers are on your next policy. Typically, they’ll ask if you or any listed drivers have been in an accident and you must answer honestly. When it comes time to renew or switch your car insurance, it could be worth getting in touch with the insurer to see what your options are.

    Default Gravatar
    JudeAugust 28, 2023

    We assisted our son to purchase a vehicle (we paid some & he took a loan for balance), the deal is it’s both of our vehicle. Can we list him as a driver if he took out a part loan on it?

      AvatarFinder
      PetaAugust 28, 2023Finder

      Hi Jude,
      When it comes to listing drivers for car insurance, it’s important to list whoever will be the main driver of the car, regardless of who paid for it. Some insurers will also ask you to list all additional drivers who may drive the car too. If you’re unsure about who to list, it might be worth calling your insurer to discuss your circumstances so they can help you know who is the best person to list as a driver.
      Thanks,
      Peta

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