What happens if you let someone drive your car and they are not on your insurance in Australia depends on whether your policy allows unlisted drivers. If you have a standard comprehensive policy from NRMA, Allianz, AAMI, QBE, Suncorp or Budget Direct, your policy will still cover the accident even if driver is not listed, because insurance follows the car, not the driver, provided they have your permission and are licensed. However, you will pay extra excess, typically unlisted driver excess of $400 to $600 for drivers over 25, and $800 to $1,200 for drivers under 25 or under 21, plus your standard excess of $600 to $1,200. So total excess could be $1,500 to $2,500. Your no-claim bonus will also be affected, moving from rating 1 at 60% discount to rating 3 or higher, increasing next year's premium. If your policy is a restricted driver policy like Bingle, Rollin or some Youi policies that only cover listed drivers, and you let an unlisted driver drive and they crash, your insurer can deny the claim entirely, meaning no cover for your car or for damage to other people's cars, and you and the driver will be personally liable for all costs, which could be $20,000 to $100,000+ if you hit a luxury car or building. For personal injury, your CTP covers injuries to others regardless of listed status. So check your PDS before lending your car, and if you regularly lend, add them as listed driver.
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