# DP-P02-M-V: I've just insured my first car and my friend sometimes borrows it. Would they be covered if they had an accident? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: de9039c7-472c-4dd7-9478-ec49250440f2 In New Zealand, **your friend may be covered if they borrow your car and have an accident, but it depends on the terms of your specific policy**. It is not automatically the same for every insurer. [Consumer Protection](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance?utm_source=chatgpt.com) Things that usually matter: - **Whether you gave them permission to drive it.** Many policies cover someone else driving your car with your permission, provided they meet the policy conditions. [AMI Site](https://www.ami.co.nz/faqs/do-i-have-to-list-everyone-who-drives-my-vehicle-on-my-insurance-policy?utm_source=chatgpt.com) - **Whether your policy has driver restrictions.** Some policies require only named drivers, or apply different rules for younger drivers. If your friend is not an allowed driver under your policy, a claim could be declined or an extra excess could apply. [Aon NZ](https://www.aon.co.nz/AonNZ/media/AonMe/AonMe-Motor-Vehicle-Policy-March-2024_2.pdf?utm_source=chatgpt.com) - **Your friend’s age and licence status.** Drivers under 25 or inexperienced drivers often have extra conditions or higher excesses. [ICNZ | Insurance Council of New Zealand](https://www.icnz.org.nz/individuals/motor/?utm_source=chatgpt.com) - **Whether they are just an occasional borrower or a regular driver.** If your friend starts using the car regularly, you should tell your insurer because they may need to be added to the policy. [ICNZ | Insurance Council of New Zealand](https://www.icnz.org.nz/individuals/motor/?utm_source=chatgpt.com) A good next step is to check your **policy schedule** for wording like: - “named drivers only” - “open driver” - “drivers under 25” - “unnamed driver excess” If you tell me **which insurer you’re with** and whether your friend is **under or over 25**, I can help you interpret the likely rules. ## Gemini Answer ID: 7667b727-7f63-470c-bdba-42ac3505ae62 In New Zealand, car insurance generally **follows the vehicle rather than the driver**. Whether your friend would be covered depends entirely on the terms of your specific policy. Here is what you need to check to make sure your friend is covered: ### 1. Check Your Driver Policy Type * **Open Driver Policies:** Many NZ insurers (such as AA Insurance) use an "open driver" model by default. This means anyone with your explicit permission who holds a valid New Zealand driver's licence (or international equivalent) is allowed to drive your car and is covered, provided they comply with your policy terms. * **Named Driver Policies:** To lower premiums, some policies or insurers require you to explicitly list every person permitted to drive. If your policy is restricted to "Named Drivers Only" and your friend is not on that list, they will **not** be covered, effectively making the car uninsured during that trip. ### 2. Watch Out for Additional Excesses Even if your policy covers occasional drivers, an accident involving a friend can trigger extra costs: * **Standard Excess:** You (as the policyholder) will still have to pay the standard excess if they have an at-fault accident. * **Age or Experience Excesses:** If your friend is under 25, or is 25+ but has held their licence for less than two years, insurers typically apply heavy **unlisted driver** or **inexperienced driver** excesses (which can add hundreds of dollars on top of your standard excess). ### 3. Impact on Your No-Claims Bonus If your friend crashes your car and a claim is filed, the insurance claim goes against **your** policy history. This can cause your No-Claims Bonus/Discount to drop and result in higher premiums for you at your next renewal, even though you weren't behind the wheel. --- ### What should you do next? 1. **Check your policy certificate/schedule online or call your insurer** to confirm whether you have an "Open Driver" policy or if specific drivers are restricted. 2. **Review the excess table** on your policy document so you know what extra costs apply if an inexperienced or younger driver uses the car. ## AI Overviews Answer ID: 0d1c89e5-36d3-43b0-a666-5053182e86ff **Yes, your friend will generally be covered, but it depends entirely on their age, their licence status, and your specific insurance policy terms.** In New Zealand, car insurance typically follows the vehicle rather than the driver. However, because this is your first car and policies vary significantly between providers, you need to check your policy for the following conditions: 1\. Check for an "Open Driver" vs. "Named Driver" Policy * **Open Driver Policy:** Most standard policies automatically cover any driver who borrows your car with your permission, provided they hold a valid licence and stick to its conditions. * **Named Driver / Restricted Warranty:** Some policies (especially budget policies or those tailored for younger drivers) require **every single driver** to be explicitly named on the policy schedule. If your policy has this restriction and your friend isn't listed, a claim will likely be declined. 2\. The Under-25 Rule If your friend is **under 25 years old** , standard open policies often exclude them entirely unless you have specifically added "Under 25 Driver" coverage to your policy. If they are allowed to drive, be prepared for a significantly higher **"unlisted driver" or "inexperienced driver" excess** (the out-of-pocket fee you pay when making a claim) if they cause an accident. 3\. Licence Conditions must be Followed For the insurance to remain valid, your friend must hold a valid New Zealand or eligible overseas licence and strictly follow its conditions. For example, if they have a **Restricted Licence** and drive after 10 PM or carry passengers without a supervisor, your insurer can legally decline the claim. What about personal injuries? If your friend has an accident, any personal injuries to them, their passengers, or others involved are covered nationally by the **[Accident Compensation Corporation (ACC)](https://www.acc.co.nz/)** , New Zealand’s no-fault personal injury scheme. Your car insurance only handles the physical damage to the vehicles and property. * * * To be completely sure, I highly recommend checking your **policy schedule** or giving your insurer a quick call to ask: * _"Does my policy allow unlisted drivers?"_ * _"Are there age restrictions or extra excesses if my friend borrows the car?"_ ## Google AI Mode Answer ID: d26b1904-df2e-40e6-91e6-a8aabbef3d3f Whether your friend is covered if they have an accident depends entirely on the **type of driver policy** you selected and your specific **insurance provider** in _New Zealand_. Here is how coverage typically works when someone else borrows your car: * * **Open Driver Policies:** Many New Zealand insurers (such as AA Insurance) use an open driver structure. This means occasional borrowers are covered as long as they have your explicit permission, hold a valid New Zealand (or legally approved international) driver's licence for that vehicle class, and comply with all policy conditions. * **Named Driver / Restricted Policies:** Some policies or budget-tier options require you to specifically list or name the drivers allowed to operate the vehicle. If your policy is restricted and your friend is not listed, you may have no cover or face a heavy penalty. * **Age Restrictions and Extra Excess:** Watch out for age clauses. Many New Zealand insurers automatically exclude drivers under 25, or charge a substantial additional **unlisted driver excess** or **young driver excess** if an unlisted or younger person crashes your car. * **Licence and Sobriety Conditions:** Your friend must be legally allowed to drive. If they are driving on an expired licence, under the influence of alcohol or drugs, or breaching any conditions of their licence (like a learner or restricted licence rules), the insurance claim will likely be declined. * To help me check what likely applies to you, could you tell me: * **Who your insurance provider is** (e.g., AA Insurance, AMI, State, Vero, Tower)? * **What your policy schedule says** about "Drivers" or "Open/Named" status? * **How old your friend is**?