Yes, you can insure a car that's not registered in your name. Ownership isn't required to buy car insurance. The most important thing is to correctly list the primary driver of the car when you get car insurance.
When you're filling out the insurance form, it'll ask you who the primary driver of the car is. This means: who drives the car most often? You have to be truthful when you answer this. If you're borrowing your mum's car and will be driving it more than her, you must list yourself as the primary driver.
If your mum still drives it more often than you, then it's fine to list her as the primary driver.
As long as you truthfully list the primary driver of the car you're in the clear. But what if you don't?
For younger drivers or those with a muddied driving record, for example, it may be tempting to list an older driver as the primary driver of the car to get cheaper premiums.
But if this isn't true then it's called car insurance fronting. This is illegal.
If you're found to be car insurance fronting then your insurer can void your insurance policy altogether, making it worthless.
"There is a duty not to make a misrepresentation. Saying someone is the regular driver when they are not, in order to obtain a cheaper premium is a breach of this duty. This gives the insurance company the right to void the policy and not pay and claim if fraudulent or if they can prove that, had they known, then they wouldn't have insured the car."
When we refer to 'insuring a car in someone's name', we're talking about listing a person as the primary driver on that car insurance policy. The actions of filling out the document and paying for it are irrelevant.
So if you are looking to insure a car you own and want to put that insurance in someone else's name - this is fine, as long as you do it for the right reasons.
Right reason = You own the car but someone else drives it more often. Therefore, you insure the car in their name as they are the primary driver of the vehicle.
Wrong reason = You own the car and you drive the car most often, yet you've chosen to insure it in someone else's name because you think it'll make your car insurance bill cheaper. This is called car insurance fronting and it's illegal.
"We have a spare car and let a friend borrow it while his own car was being repaired. While it was tempting not to change over the insurance details, we ended up doing it because it's better to be safe than sorry. It ended up costing a little bit extra to have him as the primary driver but at least we knew that we'd be covered if anything happened while he was driving it. It was also a speedy process! I felt much better once it was all done."
Yes, but there are rules around this. To understand how this works, we'll start with a few important definitions:
So, when we're talking about whether or not you can be added to your parents' car insurance policy, the answer is yes. You just have to decide if you should be added as the primary driver or as an additional/listed driver.
If you're under the age of 25 and are added as the primary driver, there's a good chance this will make your car insurance bill more expensive. It's frustrating, but you can't pretend you're not the primary driver just to avoid this.
"While it can be tempting to put your car insurance policy in the name of another driver for the sake of a cheaper premium, this is considered insurance fraud. Luckily, there are other ways to reduce the cost of your premium. Many insurers allow you to adjust your excess; the higher your excess, the cheaper your premium. Remember, you still need to be able to afford your excess so adjust this responsibly."
"Not all insurers ask who else drives your car beyond the primary driver, so an occasional driver you don't list usually just means a higher excess if they're ever in an accident. But if someone drives your car regularly - a partner, adult child or other household member - you must declare them. Under your duty to take reasonable care not to make a misrepresentation, failing to list a regular driver can mean your insurer refuses the claim entirely, not just charges a bigger excess."
Insuring a car that is not registered to you is entirely possible, you just have to do it correctly. To do this, start by familiarising yourself with the terms; "primary driver" and "listed" or "additional driver". This will help you know how to fill in the forms correctly and get the car insured in a way that won't cause problems further down the road.
Primary driver: This is the person who drives the car the most often.
Listed driver or additional driver: This is a person who drives the car but they're not the person who drives the car the most. If you're a listed or additional driver, you might borrow the car from time to time but someone else drives it more often than you.
Once you know how to define your usage of the car, you can get a quote online and proceed like normal. Really, your only duty here is to be honest with the insurer about how you're using the car and who is driving it. The insurer isn't concerned with who owns the car. It may not even ask about it.
If you never get caught doing this, then probably nothing. But if you do get caught doing this, you'd be breaching your duty of disclosure to the insurance company and they could void your insurance altogether.
This would make the policy worthless, despite what you've paid for it. This is known as insurance fraud and it's illegal. You're better off just being honest from the start.
If you're a younger driver and you want to reduce the price of your car insurance premium, read our guide on car insurance for under 25s.
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Does the owner and policy holder (that does not driver the car) have to have a licence. The person has a disability and has support workers drive their car. There is no primary driver, it is a variety of drivers.
Hi Gina,
This will depend on the state you are purchasing the car. For instance, in NSW, you are able to purchase and register a car without a licence, so long as you have a customer number and purchase Compulsory Third Party Insurance (CTP). However, you may not be able to get comprehensive cover, as you will need to list a name of the primary driver on the policy. If you’re looking for an added layer of protection on top of CTP, you can also take out third party, fire and theft car insurance, which can pay to repair or replace your car if it’s damaged by fire or stolen.
Ceyda
Hi, I own a car that my son drives as the main driver – it’s pretty much his car – he pays for all costs including rego – BUT it was purchased/registered in my name.
I understand he needs to be listed as the main driver on the policy. What i want to know is does the policy have to be in my name??
If he should have an accident and need to make a claim – my driving insurance history will be taking the hit, if the policy is in my name – which I do not want.
Can the policy be in his name only and I just be listed as a secondary driver?? I very rarely drive the car, as I have another vehicle.
Hi Sonni, No, in this case the policy doesn’t need to be in your name, and shouldn’t be. As your son is the primary driver he should be listed as such on the policy.
Can I insure a car if it is under dealers name and for personal purpose?
Hi Kin,
In most cases, car insurers don’t even ask who owns the car – so you should be fine to insure it however you like. I wouldn’t expect you to have issues insuring the car but if you’re unsure, give the insurer a call and explain what you’re trying to do, they should be able to help you.
Hope this helps.