Whose insurance covers if a friend drives my car?

Whose insurance covers if a friend drives your car in Australia is your insurance, not your friend's, because car insurance follows the car. If your friend is driving your car with your permission and has an accident, your car insurance policy is the one that responds. If you have comprehensive insurance, it will cover damage to your own car and damage your friend caused to other people's cars and property up to $20M. If you have Third Party Property Damage only, it will cover damage your friend caused to other people's cars but not damage to your own car. Your Compulsory Third Party insurance will cover personal injury to others regardless of who was driving. You as owner will need to lodge the claim, pay the excess, which includes standard excess of $600 to $1,200 plus any unlisted driver 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. Your friend's own car insurance on their own car does not cover your car. However, if your friend was at fault and you have no insurance or your insurer denies claim because your policy is restricted to listed drivers only like Bingle or Rollin and friend was not listed, then your friend as driver is personally liable and you as owner could also be pursued for allowing uninsured use. In that case, your friend may need to pay out of pocket. So insurance that covers is the insurance on the car being driven, which is yours.