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Car Insurance for Non-owners
Car Insurance for Non-owners
Written by
Kervin Mathew
Edited by
Laura Crowden
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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Can I insure a car that’s not in my name?
Long story short
You can insure a car you don’t own as long as you’re the primary driver
The primary driver is the person who drives the car most frequently.
Getting insurance for a car as a non-owner is simple
It’s same as insuring a car you own. You’d just have tell the insurer that you’re the primary driver or risk ‘insurance fronting’.
As the primary driver, you’re free to choose the level of cover you want
You can choose comprehensive or third-party cover. Just make sure you’re upfront with the insurer about who else drives the car.
Can I insure a car that’s not in my name?
Yes, you can insure a car you don’t own as long as you’re listed as the primary driver on the insurance policy. The primary driver is simply the person who drives the car most frequently.
You’re the primary driver if
You drive the car more than anyone else. For example:
- You’ve just become a P-plater and your parents gave you the keys to the backup Barina.
- Your flatmate left their car to you to use while they’re backpacking through Europe for a year.
In both instances, you’d be able to take out car insurance even though you don’t own the vehicle.
You’re not the primary driver if
Someone else drives the car more than you. For example:
- You borrow a friend’s or relative’s car every now and then for a Costco run.
- You use a company ute for a one-off personal road trip to the Blue Mountains.
In these scenarios, you wouldn’t be able to insure the vehicle because you drive it less frequently than the owner.
What’s the difference between owning a car and being its primary driver?
Owning a car means that it’s registered under your name. When it comes to accidental damage caused by your car, you could be held responsible for any compensation or paying repair bills.
Being the primary driver doesn’t necessarily mean you own the car, but you could still be held responsible for any accidental damage the vehicle causes.
Note: If the insured vehicle is in an accident and deemed a total loss, the insurance payout goes to the owner of the vehicle and/or the lender if the car is on finance, not a primary driver who doesn’t own the car but is the policy holder.
How do I get car insurance for a car I don’t own?
Taking out car insurance is the same process regardless of whether or not you actually own the car. But you must be completely upfront with the insurer about who owns the car and who is the primary driver.
Not disclosing to your insurer who actually owns the car or drives it the most in the hope of paying less for insurance is known as ‘fronting’. Fronting is considered fraudulent and can lead to denied claims, cancelled policies and difficulty getting insured in the future.
What types of car insurance can I get?
Not owning the car doesn’t limit your car insurance options, meaning you can choose from comprehensive car insurance or third-party options.
Third-party property covers damage you cause to other people’s cars and property, but it doesn’t cover damage you cause to the car you’re driving, even if you’re listed as the primary driver.
Third-party property, fire, and theft won’t cover any damage to the car you’re driving as a primary driver. But it can cover damage you cause to other people’s cars and property, as well as theft and fire damage to the insured car.
Comprehensive car insurance is the only type of insurance that can cover damage to the insured vehicle regardless of who’s driving it and who’s at fault with some exceptions. It also covers damage caused to other people’s cars and property.
Helpful tip
As a car’s primary driver, you have the freedom to pick the level of car insurance you want. While third-party car insurance can be cheaper, it will only cover damage you cause to other vehicles and not to the one you’re driving.
Even if you don’t own the car, you might want to consider comprehensive cover for your regular ride. It offers wider coverage, extra benefits and, particularly, cover for damage to the insured vehicle – even if you’re at fault in an accident.
Adrian Bennett
General Manager for General Insurance
Can I drive a car I don’t own if I’m not listed as the primary driver?
Yes. You can legally drive a car you don’t own, even if you’re not listed as the primary driver. If you do, it might be worth keeping these things in mind.
- Listing additional drivers – Most insurance policies typically allow only one primary driver, so if you’re not the main driver but still drive the car regularly, you might want to list yourself as an additional driver.
- Additional unlisted driver excess – You can also drive a car occasionally even if you’re not listed on the policy. But bear in mind, claims for accidents caused by unlisted drivers are likely to attract an additional unlisted driver excess. The unlisted driver excess may not apply to learner drivers, but this can vary between insurers so be sure to read the product disclosure statement (PDS) or speak to your insurer directly about it.
- Driver age restrictions – Some policies only cover damages caused by drivers over a certain age, such as 25 or 40. So if you’re thinking about getting behind the wheel of someone else’s car, check with the policyholder if they have a driver age restriction on their policy.
Get car insurance, get peace of mind
As the primary driver, you’re in the driver’s seat when it comes to insuring the car you drive whether you own it or not. Try the iSelect comparison tool to give yourself a better chance of landing a great deal on car insurance.
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