Applicable Car Insurance When Driving Neighbours Car

I have question regarding car insurance in Australia.

  1. I have a third party property insurance cover.
  2. If i drive neighbours car which can have third party or comprehensive cover.
  3. I get into accident due to my fault.

Which insurance is liable to pay for damages to the neighbours car and the other car?

In US my third party car insurance would have covered damages to neighbours car as well as the car I hit. Because in this case both cars are third party properties and my insurance has covered for third party property damages if i am at fault while driving a vehicle.

Same thing is also applicable on rented cars in US.

I want to know what will be applicable in Australia in such a situtation?

Comments

  • +3 votes

    Insurance is attached to the car not the driver. To be covered driving your neighbours car you need to be a named driver or have their policy cover any driver.

    •  

      But isnt that for comprehensive insurance?
      Rate for third party insurance is not affected by how expensive your car is but only comprehensive insurance rates change if you go for expensive car.

      Third party they are insuring you for the fault. .

      •  

        If you drive their car and crash it and they only have third party PROPERTY insurance then the insurance pays for damage to What you hit, but not the neighbour’s car. If they have comprehensive then the damage to their car will be covered (less the excess)

        As above though, check the policy detail as to wether you need to tell the insurance company you are the driver - before driving. We have two cars comprehensive insurance. one insured with NRMA will cover any driver (but with an extra excess for young drivers) the over, insured with
        Budget Direct and only the listed drivers are covered - self and wife. If I wanted to loan my car to anyone I’d have to list them for budget direct. It’s a trade off, my car is cheaper, less used so gets cheap insurance but limited drivers.

        It does sound like a better option to have your own third party ‘drive any car’ policy, but not what is available in Aus.

  • +2 votes

    1) where did u get this Third Party Property cover?

    If u are driving the neighbours car then I'd strongly recommend you check with the insurance company as to which drivers are covered. My daughter drove one of our cars around for several months totally uninsured because I'd misunderstood the driver restrictions on the policy we had. Got lucky as there were no incidents.

    •  

      +1

      Check the PDS (or insurance premium statement) of your neighbour's policy exactly what is specified/covered.
      Some policies don't allow drivers under a certain age or have restrictions/larger excesses.

      Cheers

  •  

    You need ask neighbour what policy he got and how much access for driving car by none policy holder driver? I know it will be higher access and also neighbors premium might goes up every year.

  •  

    In US

    In Australia the CAR is insured, NOT the driver like the US.

    So

    If i drive neighbours car

    Your neighbours car insurance needs to cover you driving the car.

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