What happens if someone else crashes my car?

Lending your car to a friend or family member in need is an undeniably good deed, but what happens to your insurance policy if they crash your car or have an accident?

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To find out, Drive spoke to major Australian insurance companies to determine how your insurance claim could be impacted if the registered driver on the policy wasn’t behind the wheel.

According to a Suncorp Insurance spokesperson, comprehensive insurance will cover drivers who are both listed and unlisted as an ‘additional driver’, but the level of excess you pay will depend on various factors such as who was at fault, plus the age and inexperience of the person driving.

In the event that someone crashes your car with Suncorp's comprehensive insurance, “Your vehicle is entirely covered for any damage, and if you are at fault in the accident, you are also covered for any damage to other vehicles or property.

“Applicable excesses may apply if the driver is at fault, including a possible age excess for young drivers, inexperienced driver excess, or if you’ve chosen to add an additional excess to reduce your premiums.”

For example, NRMA Insurance will apply an Undisclosed Age Excess for any unlisted driver with fewer than two years of driving experience who is at-fault in an accident, regardless of their age.

Additionally, “in some states (Western Australia, South Australia and the Northern Territory), an Undisclosed Driver excess applies to all unlisted drivers, in addition to the vehicle’s basic excess," NRMA Insurance told Drive.

Suncorp’s third-party insurance will cover the damage to third-party vehicles and property but will not cover any damage to your own car.

Much like comprehensive insurance, the excess you pay could vary, and you could have your claim denied if the driver is found to have been ignoring the conditions on their licence, driving irresponsibly or using the car for something outside its normal usage conditions.

“With Allianz Comprehensive or Third-Party Car Insurance, any driver using your vehicle with your permission will be covered for the same coverage and terms as yourself, provided they are licensed and adhered to any conditions of their licence," said Keith Forster, the Senior Product Manager at Allianz Australia.

Additionally, they will be covered as long as they “do not exceed the legal limit of alcohol, are not under the influence of drugs or refusing a drug/alcohol test".

However, Mr Forster warned motorists using Allianz Insurance that they might have their claim denied if the person borrowing their vehicle was using it “for a very different purpose to the way the car is normally used".

“If you have told Allianz that the car is being used for private commuting, but your friend is using it as a professional hire car or using it to transport dangerous goods, then this may result in the claim being declined," Mr Forster said.

As with comprehensive insurance claims, in some states (WA, SA and NT) third-party policy holders could face an additional Undisclosed Driver excess.

"All applicable vehicle and driver excesses that apply to listed and unlisted drivers are displayed on the customer’s Certificate of Insurance (COI)," NRMA Insurance explained.

If the person driving your car wasn't at fault, this could mean you avoid paying an excess.

But in order to make a successful claim, motorists who aren’t at fault in the accident will need the other driver’s personal details such as a residential address, phone number and any relevant information that will help the insurance companies identify the person who is responsible for the collision.

Suncorp Insurance told Drive, “Any relevant excesses will be waived so long as you can provide sufficient details of the other driver and their vehicle [involved in the accident]. Excesses will only apply in at-fault or single-vehicle scenarios”.

Allianz Insurance echoed a similar statement, explaining, “With Allianz Comprehensive, if it is determined that the driver of your car is not at fault in a covered accident and can provide the name and residential address of the person who caused the collision … the accidental loss or damage to your car from the accident will be covered without the basic excess applying”.

NRMA Insurance agreed and informed Drive no excess is required for listed or unlisted drivers as long as they’re able to provide sufficient details of the at-fault driver.

Though you might not have been behind the wheel, if the insurance company determines the driver in your car was at fault, any excesses under your policy will apply.

Allianz’s comprehensive insurance policy will cover the cost of repairs, but you'll need to pay the basic excess (the out-of-pocket amount you need to contribute towards the cost of the claim) and any added relevant excesses (e.g. Young Driver Excess) shown on your policy.

There are also other circumstances where a claim might be treated as at-fault, even if you weren't behind the wheel. As Allianz Insurance explained, “Claims where Allianz is unable to recover the cost of the claim, such as Malicious Damage (where the person is not known) or Storm Claims, we are unable to make a recovery of costs from another person”.

For NRMA Insurance customers, the basic vehicle excess shown on the policy will need to be paid for by the registered driver, even in the event another person was driving your vehicle when the accident occurred, regardless of their age.

According to Suncorp Insurance, if the driver using your car is responsible for any damages, then “any applicable excess will likely apply, including your standard, voluntary or inexperienced driver excesses".

If the driver behind the wheel of your car is under 25 years old and is determined to be at fault, an additional age excess is added to the regular vehicle excess on your insurance policy. For accidents where the under-25 driver is deemed not at fault by the insurance company, no excess will apply.

For Suncorp Insurance customers, an “age excess” only applies to learner drivers or motorists under the age of 25 and can be added to the registered vehicle excess should Suncorp find the under-25 driver at fault.

NRMA Insurance echoed a similar sentiment, telling Drive, “If someone with fewer than two years of driving experience is at fault in an accident and is not listed as a driver on the policy, an Undisclosed Age Excess applies in addition to the vehicle’s basic excess.

"If the driver involved in the accident is under 25 and is listed on the policy, the vehicle’s basic excess and applicable driver or age excesses apply."

Unlisted under-25 drivers found to not be at fault by NRMA Insurance will not need to pay any excess.

Similarly, Allianz Insurance told Drive, “The Young Driver excess will not apply for not-at-fault claims or any at-fault claims where the U25 driver was a learner driver under the supervision of a holder of a full unrestricted Australian driver licence, a car park attendant, or someone paid to repair, service or test your car”.

Allianz’s Young Driver excess only applies to under-25 drivers who are determined to be at fault in the accident.

It depends on your insurer, but it's likely your claims history will be affected regardless of whether or not you were behind the wheel.

According to NRMA Insurance, “in the event of a collision, claims where you were not the driver will not affect your claim history”.

For Suncorp Insurance customers, “your claims history will be impacted given the claim was still made on your policy".

“This applies to all claim types, which are then recorded on your policies and form part of your claims history," a Suncorp Insurance spokesperson said.

Mr Forster of Allianz Insurance told Drive, “All claims on a policy will affect your claim history.

"Any claims determined not at fault where you can provide the name, residential address or phone number of the other person who caused the collision, may not affect your premium.”

The insurance cost will depend on the excess the registered driver has chosen based on a predetermined range of options for their policy.

NRMA Insurance customers will need to look at their Certificate of Insurance, which outlines “any excess amounts that apply to your policy in the event of a claim”.

“You would be subject to applicable excesses by the policy, voluntary, age or inexperienced driver excesses. Both third-party and comprehensive products cover you for all third-party liability and property damage,” a Suncorp Insurance spokesperson said.

With Allianz's Comprehensive Insurance policy, the amount you pay will depend “on the circumstances of who is determined at fault".

“For a covered accident which is not at fault, and you can provide the name and residential address or phone number of the other person who caused the collision, or any other information that would reasonably allow us to identify the person, then you will not need to contribute towards the claims costs as an excess will not be applicable,” Mr Forster of Allianz Insurance said.