Am I insured to drive someone else's car?

20th November 2020

Chances are, at some point you've been asked or offered to drive someone else's car. Maybe your housemate or someone you're dating says it's fine for you to borrow their car occasionally. Or you're at your parents' place, and they've asked if you can duck out to the shops to pick something up in the family car. Or perhaps (terrifyingly) your boss has asked you to duck out in their car to pick something up.

But what happens if you get into an accident that's your fault while driving a car that's not yours? Well, with Bingle, the owner of the car (i.e. the car insurance policy holder) can still lodge a claim. But, if you're not a listed driver, they may have to pay an extra excess, in addition to the standard excess. See PDS for full details, eligibility, inclusions and exclusions.

So, if you're tempted to borrow the car of someone you live with, but you're not on their policy, keep in mind that if they end up needing to lodge a claim, the insurance excess payment might be significant. You can avoid an unlisted driver excess by being listed as a driver on their policy. Depending on your age, gender, driving history and other factors, this may impact the cost of their policy. Of course, it's up to the policy holder/car owner what they'd like to do in this scenario.

Something else to know - if you hold your own Bingle car insurance policy for your own car, it won't cover you if you're driving someone else's car. You'd have to rely on their insurance policy (if they have one).

• Basically, the same logic as above applies here. If you let someone borrow your car and they're involved in an accident and you need to lodge a claim, your car can still be covered. You may end up needing to pay an unlisted driver excess if they're a household member or regular driver, and not listed on your policy.
• Thinking you'd like to save yourself the potential hassle and cost of an unlisted driver excess? No worries - it's easy to list someone as a driver on your Bingle policy. Simply log in to Bingle Self Service and follow the prompts.
• Here's something else to consider before you lend someone your car. Bingle Comprehensive Car Insurance covers accidental loss or damage to your own car caused by things like accidents, theft, storms and fire. Third Party, on the other hand, just covers you for accidental damage caused to other people's cars and property by the use of your car¹, but not damage to your car. Say you have a Third Party Car Insurance policy with Bingle and you lend someone your car and they're in an accident where they are at-fault and your car is damaged, or written off. Who will pay for the repairs or a new car?
• Ultimately the choice to lend someone your car is yours, but just be aware of what might happen if the person borrowing your car is in an at-fault accident. You may have a high excess to pay (if the unlisted driver excess applies) and/or have to ask them to pay for damage to your car. Otherwise you may have to pay for the damage yourself.

The above examples just focus on damage to cars and/or property. Different rules apply for CTP insurance – refer to your state or territory's road authority for more information. Bingle doesn't offer CTP insurance.

Want to check or update your existing Bingle policy? Log in to Bingle Self Service.

Interested in taking up Comprehensive or Third Party Car insurance with Bingle? Compare our insurance products.