What happens if your friend borrows your car and gets into an accident in Australia is similar to any permissive driver situation because insurance follows the car. If your friend was driving with your permission and is licensed, your car insurance will cover the accident. If your friend was at fault and damaged another car, your Third Party Property or Comprehensive insurance will pay for damage to the other car up to $20M. If you have comprehensive, it will also pay for damage to your own car minus excess. You as owner must lodge the claim, pay the excess of $600 to $1,200 plus any unlisted or young driver excess of $600 to $1,200 if your friend is under 25 and not listed, and your no-claim bonus will be affected, moving from rating 1 with 60% discount to higher rating, increasing future premiums. If your policy is restricted to listed drivers only like Bingle or Rollin and your friend was not listed, your insurer may deny the claim and you and your friend will be personally liable for all costs, which could be tens of thousands if you hit a luxury car or building. For personal injury, your CTP insurance covers injuries to others regardless of driver. If your friend was not at fault and another driver hit them, you claim against the at-fault driver's insurance for repairs to your car. You should get your friend's licence details, take photos, and not let your friend drive if they are unlicensed, drunk or your policy excludes them. Your friend is not required to pay your excess unless you have a private agreement.
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