Whether you frequently borrow cars or need cover for occasional use, it’s important to know what your car insurance options are if you’re not the registered owner. Learn how non-owner car insurance works in Australia, how you can be covered when the vehicle isn’t in your name and why it’s essential to be upfront about who’s doing the driving.
Can you insure a car that's not in your name in Australia?
Yes – even if you’re driving a vehicle that isn’t registered in your name, you can still purchase car insurance for it. This is generally required if you’re the primary driver of the car. There are plenty of situations where this might happen. For example:
- Your parent owns the car, but they don’t drive it as much as you do.
- You share a car with your partner that’s registered in their name, but you’re the one who drives it most.
- You borrow a friend or family member’s car long-term and are the main user during this time.
These are all perfectly legitimate arrangements – as long as the person who drives the car most is correctly listed as the primary driver, and other users are listed as additional drivers if necessary.
If you regularly drive a car you don’t own but aren’t the main driver, you can usually be listed as a secondary or additional driver on the existing policy instead of taking out a new one yourself.
Can you insure your own car in someone else’s name?
While you can insure your own car in someone else’s name if that person is genuinely the primary driver, you can’t falsely list another person as the main driver just to reduce your premiums. This is known as fronting, and while it might seem like a harmless workaround, it’s considered a form of insurance fraud.
Fronting often occurs when a high-risk driver – such as a young or inexperienced person, or someone with a poor driving record – owns and drives the car, but names a lower-risk person, like a parent or partner, as the primary driver to secure a cheaper policy.
This kind of misrepresentation can lead to serious consequences. If your insurer finds out, they may:
- Cancel your policy
- Deny any claims
- Report the incident as fraud
It’s important to always be honest about who drives the car most. Being caught out can leave you without cover when you need it most and may affect your ability to get insurance in the future.
Am I covered if I drive someone else’s car but I’m not listed on their car insurance policy?
In Australia, if you drive someone else's car, your coverage will depend on the insurance policy held by the owner. Many car insurance policies will cover occasional drivers, as long as they have the owner's permission to drive the car. However, this won’t always be the case. Some may charge an additional excess for unlisted drivers, while others will exclusively cover those listed on the policy.
If you’re planning to drive someone else's car, it's important to confirm with the owner whether their insurance policy extends coverage to you as an additional driver. It's also a good idea to review the policy's terms and conditions to understand any specific requirements or limitations that may apply.
If you frequently drive someone else's car or regularly use a vehicle you don’t own, you’ll generally need to be listed as a nominated driver on their insurance policy. Even if you’re only borrowing a car temporarily, being added as a nominated driver can be an effective short-term car insurance solution. It provides extra peace of mind and helps ensure you’re covered in the event of an accident or damage.
