Third-party driver insurance: who needs it and how much does it cost?

1. Third-party driver insurance versus car insurance

Third-party driver insurance is an add-on to personal liability insurance (“driving third-party vehicles”). It protects you from any financial consequences of making an insurance claim for a car you have borrowed. The third-party driver insurance covers repair costs (if there is no full casco insurance), deductibles and any loss of bonus.

Car insurance, on the other hand, is property-based. The policy stipulates a specific car as the object of insurance. Therefore, the car insurance you take out for your own car does not cover you when you drive other vehicles.

2. Who needs to take out third-party driver insurance?

Third-party driver insurance is worthwhile if:

• you occasionally* drive the car of friends or relatives.

• you are not borrowing a vehicle from someone in the same household as you.

*The definition of “occasional use” varies from provider to provider. You are usually only allowed to drive borrowed vehicles for a certain number of days per year.

3. Third-party driver insurance: costs and examples

The cost of third-party insurance in Switzerland varies from one insurer to another. Your age and your living situation also play a role. Below you will find some examples of the annual additional costs depending on the insurer. The example is based on a couple from Bern who live in rented housing.

• Allianz third-party driver insurance: CHF 30

• Axa third-party driver insurance: almost CHF 40

• Basler third-party driver insurance: approx. CHF 55

• Helvetia third-party driver insurance: CHF 30-50

4. What does third-party driver insurance pay for?

Imagine you cause a rear-end collision with your neighbour’s car. Your neighbour's mandatory car liability insurance pays for the damage to the damaged car in front of you.

If your neighbour has full casco insurance, it will pay for damage to the borrowed vehicle. In most cases, you still have to pay a deductible. Third-party driver insurance covers the deductible and any bonus loss.

If the neighbour only had partial casco or car liability insurance for their car, the third-party driver insurance would cover the car repair costs.

5. When are damages not covered by third-party driver insurance?

As a rule, third-party driver insurance does not cover damage to rental cars or car-sharing vehicles such as those from Mobility. You can take out full casco insurance through the rental company. If you rent a car abroad, travel insurance covers any deductible.

Do you borrow cars on a regular basis? Or do you live in the same household as the vehicle owner? Then claims are not covered by third-party driver insurance.

6. How do I find the best provider of third-party driver insurance?

Comparis has produced a home contents insurance comparison tool to compare different offers. To do this, select the “cover for driving other cars” option as part of your personal liability insurance.