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Open Driver Policy on Car Insurance Explained

Are you unsure what the Open Driver Policy is and whether you need it? In a nutshell, it’s a policy that allows anyone to drive your car with your permission and still be covered by your car insurance. We answer some of the most asked questions to help you understand it.

Difference Between the Other Driver vs Open Driver Policy

The Other Driver Policy covers only individuals specifically named in your policy. On the other hand, the Open Driver Policy covers anyone who drives your car with your permission.

As a result, all claims and benefits you have as a regular driver applies to whoever else you let drive your car, provided they have a valid driver’s licence.

Who is the Regular Driver on a Policy?

The Regular Driver refers to the person who will most often drive the car. They are therefore seen as the main driver.

Do I Need Open Driver Cover?

Whether you need it depends mainly on your lifestyle. Do you only ever let your spouse or child use your car to get around? Then adding them to your insurance policy as other drivers will be enough.

However, if you want the freedom of letting any other licenced drivers take turns driving your car without worrying about paying for damages, the Open Driver Policy is a better choice.

In short, it’s for situations where someone else often needs to drive your car, but it’s unlikely they’ll drive your car often or even ever again.

How Do I Qualify for Open Driver Cover?

To benefit from PMD’s Open Driver Cover, you’ll need to be on our Comprehensive Plan. But remember, anyone you allow to drive your car must comply with the policy terms and conditions.

Does My Insurance Policy Include Open Driver Cover?

Open driving is an optional extra on many car insurance plans. However, on PMD’s Comprehensive Plan, your cover automatically extends to another licensed driver you allow to drive your car.

In contrast, the Customised and Third-party Plus plans only cover you for additional nominated drivers specifically named in your policy.

What Happens If Another Driver Has an Accident with My Car?

If you have Open Driver Cover and someone who drives your car with your permission gets into an accident, your vehicle is covered in the same way as if you were the one driving. Therefore, you can claim third-party damages.

However, it’s a good idea to only give experienced and responsible drivers permission to use your car. Otherwise, your future premiums will cost you more.

What to Do if Someone Gets into an Accident Driving Your Car

If someone drives your car without permission and gets into an accident, you should immediately report the incident and lay a criminal charge against that person within 24 hours. If you don’t, your insurance provider may reject your claim.

Keep in mind that if you do lay a criminal charge but decide to withdraw it at a later stage, you’ll lose your right to claim. Your insurance provider may also choose to pay your claim and recover any costs from the person who was wrongfully driving your car.

When Am I Not Covered Under Open Driver Policy?

You’ll lose your Open Driver Cover if the person you permit to drive your car doesn’t have a valid driver’s licence, goes 20km per hour over the speed limit, is under the influence of alcohol or drugs, or violates any other policy terms and conditions. This will depend on your specific car insurance provider, so always make sure that you read the fine print of your policy and understand it.

You can also lose your cover if it’s found that the person who took out the policy is not the true regular driver of the car or if someone drives your car without your permission. Additionally, if you’re a PMD client, you only have Open Driver Cover if you’re on the Comprehensive Plan.

Will Open Driver Cover Cost Me Extra?

Open Driver policy won’t cost extra if you’re already on PMD’s Comprehensive Plan. However, it’s important to note that the excess amount may be higher when claiming for an accident that happened while someone other than the regular driver was driving.

How to Get Convenient, Affordable Car Insurance

PMD is dedicated to making car insurance easy and convenient for you, which is why you automatically get Open Driver cover on our comprehensive plan. To enjoy the full benefits, upgrade your plan or get customised quotes today.


This article provides general information on the Open Driver Policy. Contact your insurance provider for exact information and terms and conditions. When you get car insurance quotes, ensure you understand everything included and excluded from your policy.

Remember to always buy car insurance with much thought and only through a certified financial services provider.

Reach out to us today to learn more about getting affordable, comprehensive car insurance with fixed premiums* and a reduce-to-zero excess*. *Terms and Conditions apply.

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