KEY POINTS:
- When you take out car insurance, you’ll be asked to nominate the vehicle’s main driver. If it’s a car used by a couple, the other person will be listed as an additional driver.
- Nominated drivers appear on the car’s insurance policy, and are covered to drive the car as long as they meet the conditions outlined in the policy.
- Open driver insurance options, allowing drivers of any age or licence type to drive a vehicle, incur higher premiums and excess charges.
- It’s better to never assume a driver will be covered to drive your car, and to discuss additional driver options with your insurance provider when arranging your policy.
Does car insurance cover other drivers?
When you take out car insurance, you’ll be asked to nominate the vehicle’s main driver. If it’s a car used by a couple, the other person will be listed as an additional driver.
These nominated drivers appear on the car’s insurance policy, and are covered to drive the car as long as they meet the conditions outlined in the policy. It’s a good idea to add anyone who regularly drives your car to your policy to ensure they’re covered properly when behind the wheel.
Some insurance policies cover drivers who aren’t listed on the policy, as long as they’re legally able to drive and have permission to use the vehicle. However, insurance providers each have different policies, and you should read thoroughly your policy’s product disclosure statement (PDS) so you understand your level of cover.
It’s better to never assume a driver will be covered to drive your car, and to discuss additional driver options with your insurance provider when arranging your policy.
What about under 25s?
Inexperienced drivers and those under 25 are generally considered a greater accident risk by insurance companies, and often incur higher premiums as a result.
If you’re under 25 and learning to drive, getting listed as a named driver on your parents’ insurance policy is essential – especially if you’ll be driving their vehicle regularly. Although this will mean your parents’ premiums will increase, if you damage their vehicle and aren’t listed as a named driver on their policy, the claim may not be covered.
However, if you have your own car, of which you are the main driver, you will have to take out your own insurance policy. Insuring your car with an older driver listed as its main driver will likely void your policy in the event of a claim.
Regardless of whether you have your own policy or are added to a parent or guardian’s policy, it’s likely that if you’re under 25 years old, you’ll have to pay extra excess charges in the event of a claim.
What if I don’t give the driver permission to use my car?
If someone drives your car without permission, your insurance may not cover them. This is considered “non-permissive use”, and the driver will likely be personally responsible for any damage they cause.
How do I add another person to my insurance?
To add another person to your car insurance policy, you’ll need to contact your insurance provider. Some providers will allow you to update your policy by yourself, via a website or app. If this isn’t an option, you can call or email your provider. Your provider’s contact details should be listed on your policy.
Compare car insurance with Canstar
Compare Outstanding Value Car Insurance with Canstar
Looking for great value car insurance for you and your family? Each year, we release our car insurance awards, including winners for Insurer of the Year, Outstanding Value, and Most Satisfied Customers. As part of our award results, we also publish our Outstanding Value Star Ratings, covering car insurance for different age groups.
Below are our top-rated providers in the drivers aged 30-49 category. Click here to view our complete car insurance Star Ratings for all age groups.
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The table above is an abridged version of our research. For the full results of our latest Car Insurance Ratings and Award, click here.
About the author of this page
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery book 5 Minute Murder.
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