Your insurance cover when you borrow cars

Short answer:

When you borrow cars with Car Next Door, you’re covered by our comprehensive insurance policy. If you’re responsible for damage, the most you’ll need to pay is your Damage Cover Liability (DCL) amount - subject to some common-sense insurance exclusions.

If you’re responsible for any damage to a car you borrow, you’ll need to pay for loss and damage up to the amount of your Damage Cover Liability (DCL). The DCL works like an insurance excess, capping the amount you’ll need to pay if you are responsible for damage.

As with all insurance policies, there are some exclusions to the cover. These include driving off-road or to the snow, towing, and letting people who aren't approved Car Next Door members drive the car.

What’s covered

Our comprehensive policy covers loss and damage up to $40 million. This includes:

  • Damage to the vehicle
  • Loss of the vehicle due to theft or fire
  • Towing, storage and recovery charges
  • Third party loss

You also receive complimentary roadside assistance for mechanical breakdowns. Call outs for other issues, such as flat tyres or locked-in keys, are only included with premium cover.

What’s not covered

Like any insurance policy, there are exclusions to your cover. You may be liable for the full cost of any loss or damage if you:

  • Use the car to tow anything
  • Drive off-road or on an unsealed surface
  • Drive through water or on the beach
  • Drive above the snow line during snow season
  • Drive for rideshare or courier services or competitive driving
  • Drive with a warning light on or after becoming aware of a mechanical fault, or when the car is in an unsafe or unroadworthy condition
  • Drive under the influence of drugs or alcohol, or refuse to submit to a test
  • Drive while using a device (e.g. texting)
  • Leave the car unlocked or fail to secure the key in the Lockbox when returning the car
  • Put the wrong fuel in the car
  • Damage the underbody or the roof of the car
  • Carry more passengers or cargo than the car is designed for
  • Carry anything dangerous or illegal, or use the car in connection with any illegal activity
  • Pick up hitch-hikers
  • Jump start the car, or use it to jump start another car
  • Use the car in a reckless or dangerous way or contravene traffic regulations
  • Commit fraud or fail to provide information that is relevant to an insurance claim
  • Flee the scene of an accident

Who’s covered

You and any other approved Car Next Door members are covered by our policy. There is no fee for additional drivers.

If the car has a manual transmission, all drivers must have at least 2 years of manual driving experience.

If you allow someone who does not meet these criteria to drive, you may be liable for the full cost of any loss or damage that occurs.

When you’re covered

You’re covered by our policy and roadside assistance from the time you pick up the car to the time you end your trip.

This also means you're responsible for any loss or damage to the car during this period - even if it’s not your fault.

If you are more than 2 hours late returning the car, you may be liable for the full cost of any loss or damage. Be sure to extend your trip to stay covered by our policy.

What you’ll owe for loss or damage

You’ll be liable for the costs of repairs or replacement up to your selected excess.

If any of the exclusions to cover apply, you’ll be liable for the full cost of repairs or replacement and any applicable fees.

If you weren’t at fault, we’ll refund any costs we recover from the at-fault party. Be sure to get the contact details of any other drivers involved in an accident.

How to protect yourself from costs

Sometimes, accidents happen. The best way to protect yourself from unexpected damage costs is to reduce your excess. You can do so by upgrading to premium cover now or anytime before your trip begins.

You can also protect yourself by uploading clear photos of the entire car before and after your trip. These photos are your first line of defence in a damage dispute.

If your photos can't prove the disputed damage happened before or after your trip, you may be held liable. It's important to make sure you don't miss any parts of the car and that your photos are well-lit and not blurry.

Related articles

Your responsibility for damage when you borrow a car

Exclusions to the insurance cover

Damage Cover Liability (DCL)


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