20/08/2026
Whether it’s your teenager, a family member or friend, there may come a time when someone else gets behind the wheel of your car. Understanding what this means for your car insurance cover can help you avoid surprises at claim time. Here are answers to four common questions.
Is my car insured if someone else drives it?
This depends on your insurance provider and will be based on the conditions in your policy documents. For AA Insurance customers, our car insurance policies have an open driver policy, which means your car will be covered if:
- no special term has been applied to your policy;
- the person has your permission to drive your car;
- the person complies with our policy conditions and any applicable licence conditions.
Your policy document details the policy conditions that you and your drivers must comply with to remain insured. For information about the requirements and restrictions that apply to learner, restricted and full licences, visit the AA website: New Zealand Driver Licences.
While some insurers cover anyone who has permission to drive your car, others may have restrictions, so it's important to understand the details of your cover before you hit the road. If the driver is under 25, additional excesses may apply if you need to make a claim. For AA Insurance customers, this information can be found on your policy schedule.
How does car insurance work for young drivers?
Our open driver policy means that any licenced driver who has permission to drive your car will automatically be covered, providing they comply with the policy conditions and any applicable licence conditions they may have.
This includes young drivers. If a young driver is involved in an accident while driving your car, you may need to pay an additional excess. This is the amount you pay when you make a claim. The type of excess payable may depend on factors such as the driver's age and level of driving experience. Here are a few excesses that may apply for AA Insurance customers:
- Inexperienced driver excess, which applies to drivers who are 25 or over and have less than 2 years driving experience;
- Under 25 excess, which applies to drivers who are under 25 and listed on the policy;
- Unlisted Under 25 excess, which applies to drivers who are under 25 and not listed on the policy.
You can find what excesses may apply, as well as any special terms and policy conditions in your policy document and schedule.
To remain covered by insurance, you’ll need to comply with the conditions of your licence. For example, if you’re on a restricted licence, the law states that you’ll need to be accompanied by a supervisor when driving between 10pm and 5am. If you don’t comply with your licence conditions and need to make a claim, your claim may be declined.
When should I add a driver to my car insurance policy?
For AA Insurance customers, our open driver policy means you don't have to add to your policy every driver who uses your car. However, you may want to consider adding anyone who drives your car as a listed driver, particularly if they're under 25. Here's why:
- It can help you understand in advance how your policy would respond if that driver was involved in an accident, including whether any additional excesses may apply.
- It can save time when you make a claim, as we'll already have the driver's details on file.
- A listed driver can start a claim, but we'll need to speak with the policy holder or an authorised individual before the claim can be progressed.
You can easily add a driver to your policy on your My AA Insurance online account in the “Update your policy section” or by getting in touch with us.
What's the difference between a policy holder, listed driver and authorised individual?
There are a few different ways someone can be connected to a car insurance policy and each role has different responsibilities and permissions:
- Policy holder: the policy holder is the person who owns the policy, is most likely to pay the premium for it, and is authorised to make changes and discuss any claims with us.
- Listed driver: a listed driver is a person who drives the insured vehicle and is named on the policy. They don't need to own the car or the policy. A listed driver could be a child, parent, family member or friend who drives the car.
- Authorised individual: an authorised individual is someone the policy holder trusts to help manage the policy. They can make changes to the policy, manage payments, and lodge and manage a claim on the policy holder's behalf if needed. This may be useful if a parent is helping a young driver manage their insurance or if the policy holder is unable to manage the policy themselves.
If someone drives your car, you may want to consider adding them as both a listed driver and an authorised individual. This means they'll be recognised as a driver and can also help manage a claim. For example, if your child is studying away from home and is driving your car, having them named on the policy in both roles can help make the claims process smoother.
To add a listed driver to your policy, you can fill in our webform or get in touch using on our live chat. If you'd like to add an authorised individual to your policy, simply give us a call.
Any questions?
Now’s a great time to review your insurance. We recommend checking your details are up to date and ensuring the policy and cover you’ve chosen is right for you and your insurance needs.
If you have any questions about your insurance, need to update your AA Insurance policies or would like a quote, don’t hesitate to contact us. You can find our opening hours and ways to get in touch with us on our contact page.
This blog provides general information only and is not intended to be a recommendation or personalised financial advice. Excesses, terms, conditions, limits and exclusions apply to AA Insurance Limited’s policies. Please check the policy wording and your policy schedule for details of cover. The provision of cover is subject to the underwriting criteria that apply at the time.
