A new driver in the family, named drivers, a friend who borrows the car: who is covered?
What “named drivers” and “any driver” mean, what happens when someone drives outside the terms, why a wrong main-driver declaration is a risk, what counts in a young driver’s price, and what the Court of Appeal said about “years of licence” clauses.
In short
Whoever the policy allows is covered: named drivers, any driver, or drivers within age and licence limits. If someone drives outside the terms, the victim has a route to compensation, but the driver and the owner may be left exposed.
- Check on the certificate who may drive and within what limits.
- Declare every new driver in writing before they drive, and the real main driver.
- Ask what excess applies to young or inexperienced drivers.
- Do not lend the car to anyone unless you are sure they are covered.
From the series “The questions you are afraid to ask”, part “General insurance”: questions real people ask, with honest answers. Information only: we do not sell general insurance.
At a glance
- The policy says who may drive: named drivers, any driver, or limits of age and years of licence.
- If someone drives outside the terms, the victims have a route to compensation, but the driver and the owner may be left exposed.
- A wrong statement about who the main driver is, is a false statement; the victim is paid, you may be left without cover.
- Young drivers usually pay more because of experience; since 2026, however, age cannot be the only reason for a refusal.
- A “years of licence” clause that is not clear is read in the insured’s favour (Court of Appeal, 2025).
Your child has passed the driving test. Now what?
The joy of a first licence often comes with a quote that takes your breath away. That is when the temptation appears: “let’s put it in my name”, “he can drive without being declared”. Here we explain what the driver terms mean, what you risk with a wrong statement, and what usually counts in the price, with no prices and nothing to sell.
Who may drive
- Named drivers: only those listed on the certificate or the policy schedule.
- Any driver: often with limits, for example a minimum age or years of licence, and a higher excess for young or inexperienced drivers.
- Learners, visitors, drivers with a foreign licence: whether they are covered is set by the policy, not by a general rule we found.
When someone drives who is not covered
The law protects the victim first: since 2021 the insurer must satisfy court judgments for third parties even if there was a false statement, and when there is no insurance the Motor Insurers’ Fund pays and then seeks the money from the driver at fault. For damage to your own car, and whether the insurer or the Fund can turn against you, the policy term and the facts decide; we have not confirmed this as a general rule. Tell the insurer the truth from the start, and if a term is unclear, ask for it in writing. More on the penalties and the Fund in the article on compulsory cover.
Why a young driver costs more
Each insurer prices with its own data, and driving experience is usually one of the heaviest factors, together with the car and its engine. Since a 2026 amendment, age cannot be the only criterion for a refusal, termination or increase (Article 3A); other risk factors can count. What usually changes a quote is explained in the article on premiums and age, and for children in general in the article Our children, from school to their first job.
What went wrong for others — and how to avoid it
- An undeclared driver or a change of use or address led to a dispute (Cyprus). The victim has been paid since 2021, but the policyholder may be in a difficult position. How to avoid it: declare in writing every driver who drives regularly, every change of use and address, and keep the confirmation.
- The insurer refused under a “years of licence” clause that was not clear (Cyprus, 2025). The driver had held a car licence for over two years but a truck licence for less; the Court of Appeal held he was covered, because the clause did not say expressly that it applied per category. How to avoid it: ask in writing for the exact clause and how the company applies it in your case.
Your questions, one by one
My son just got his licence and the quote is huge. Why is it so expensive for young drivers?
Because insurers take into account driving experience and claims history by group of drivers, and each one prices freely. The price can change a lot with the car, the engine, the cover level and the excess. Ask more than one company for quotes on the same details.
Is it cheaper to add my son as a named driver on my car than to insure his own?
It often is, but it depends on the company. What matters is that the main driver is declared correctly: if your son does most of the driving, the insurer must know. Ask for both quotes with true details.
Is it fraud to put the car in my name when my son is the main driver?
If you declare yourself the main driver while your son does most of the driving, the statement is false. Since 2021 the victim is paid even then, but you may be left without cover for your own damage and end up in a dispute with the company. Declare the real main driver, even if it costs more.
What does ‘any driver’ versus ‘named drivers only’ mean on my policy?
With “named drivers”, only those listed in the policy are covered. With “any driver”, anyone driving with your permission is covered, often with limits of age or years of licence and a higher excess for young drivers. Check your own policy wording and ask the insurer in writing.
A friend borrowed my car and crashed. He wasn’t on my policy. Who pays?
If your policy did not cover him, the victims have a route to compensation, through the insurer or the Motor Insurers’ Fund depending on the facts. Damage to your own car is probably not covered, and you or your friend may face a claim. Tell your insurer at once and speak to a lawyer.
My policy says drivers with less than two years’ licence are excluded. What exactly counts?
The exact wording of the clause counts: from when the licence is counted, which category, whether a foreign licence counts. The Court of Appeal held in 2025 that if the clause was meant to apply per licence category, it had to say so expressly. Ask in writing how the company applies the clause to that driver, before they drive.
Are learner drivers covered when they practise in the family car?
Many policies do not cover learners, or cover them only on conditions (supervision, declaration, a higher excess). We did not confirm a Cyprus rule on what the policy must cover. Ask in writing before the first practice in the family car.
I passed my test abroad. Does my foreign licence experience count with a Cypriot insurer?
For a claims history from an EU country there is a rule: the insurer must take it into account as for local residents. For years of licence from abroad, how they count is up to each company. Bring the licence, proof of the issue date and your history, and ask in writing.
Does a young driver pay more for a powerful motorbike?
Usually yes: the engine and type of motorbike, together with experience, are among the factors insurers take into account. How much is up to each one. Ask for quotes for different engines before you buy.
Can I add a second driver just for one weekend?
Some insurers allow a driver to be added temporarily for a few days, others do not, and often for a charge. Check your own policy wording and ask the insurer in writing. Do not let the driver set off before you have written confirmation.
My daughter crashed my car and the insurer says she was under the age in the policy. What now?
The victims have a route to compensation. For damage to your own car, and whether the company can ask you for money, the exact clause decides; ask for it in writing. If the wording allows two reasonable readings, say so in your complaint, and speak to a lawyer before you sign anything.
Does a foreign visitor driving my car need to be named on my policy?
Many named-driver policies require every driver to be declared, and some have conditions for a foreign licence. If you have “any driver”, the visitor may be covered within limits. Check your own policy wording and ask the insurer in writing.
Can a student abroad keep a car insured in Cyprus while away?
Many insurers ask to be told that the main driver is away, and some offer limited cover for a car that is not used. If someone else will drive in the meantime, they must be covered. Ask in writing and do not let the insurance lapse if the car will be on the road.
Is it true that some insurers won’t insure drivers under 25 for sports cars?
A company may take into account the car and the driver’s experience. Since a 2026 amendment, however, age cannot be the only criterion for refusing third-party cover. If you are refused, ask for the reasons in writing.
Does the age law protect young drivers too, or only older ones?
The consolidated text we read speaks of “age” with no limit, so it is not restricted to older drivers. One secondary source writes that it concerns only older ages, but we did not find any such limit in the text of the law. The law forbids age as the only reason; other risk factors can count in the price.
My elderly father drives only to the village. Is there cheaper cover for low mileage?
Some insurers take low mileage or limited use into account, others do not. Ask more than one company and declare the use accurately. Since 2026, your father’s age cannot be the only reason for a refusal or increase.
A delivery rider in my family uses his own scooter for work. What insurance does he need?
He needs the compulsory third-party cover, and a private policy usually does not cover deliveries unless declared. He must declare the work use in writing. If he is an employee, his employer must hold employer’s liability insurance for work accidents.
Can I lend my car to a friend who has only a learner’s permit?
Many policies do not cover a driver without a full licence, or cover them only on conditions. If they are not covered, the driving may count as uninsured, with the legal penalties. Ask in writing before you hand over the keys.
Will a driving course or ‘safe driver’ certificate lower a young driver’s premium?
Some insurers take it into account, others do not; we found no common rule. Ask before the course whether the company recognises that particular certificate.
If my son moves out but still drives my car, do I have to tell the insurer?
Yes, it is safer: the change of address and the way the car is used can matter to the insurer. An undeclared change has led to disputes in Cyprus. Tell them in writing and keep the confirmation.
What you can do from today
- Check on the certificate who may drive and with what limits of age or years of licence.
- Declare every new driver in writing before they drive, and the real main driver.
- Ask what excess applies to young or inexperienced drivers.
- Do not lend the car to anyone unless you are sure they are covered.
- Get quotes on the same, true details from more than one company.
Where to turn
- Your insurer, in writing. For anything about your own policy, ask for an answer by email or letter and keep a copy.
- The Financial Ombudsman. For a dispute with an insurer, after you have first complained to the company in writing; a €20 fee, in Greek or English.
- The Insurance Companies Control Service (Superintendent of Insurance). It supervises insurers and how they handle complaints; it does not decide private disputes or award compensation.
- The Road Transport Department. For registering and transferring a vehicle, and for driving licences.
General information, not advice (legal or insurance). We give each rule with its source and year; laws change, so check the text in force today. For your own case, the law and what your own policy says apply. AVRASTRO is not an insurer, does not sell general insurance and does not handle claims.
Sources
- CyLaw — Law 96(I)/2000 on motor vehicle (third party) insurance, consolidated text (latest amending law listed: 71(I)/2026)
- Harris Kyriakides LLC, 8 October 2026 — Insurance coverage exclusions: recent Court of Appeal decisions
- Harris Kyriakides LLC, 23 May 2022 — Non-disclosure and false statements in motor insurance
- Politis (English edition), 6 July 2026 — Uninsured vehicles cost €19.2m in compensation since 2021
- Your Europe — Car insurance validity in the EU (Cyprus)
- Politis, 12 September 2026 — House research on motor insurance premiums (in Greek)
- CyLaw — Law 174/1989 on compulsory employer’s liability insurance (original text)
Read also: Our children, from school to their first job · A dispute over car insurance · Car: third party or comprehensive? · Compulsory car insurance and driving uninsured · Car premiums, no-claims bonus and age · Third party, fire and theft, or comprehensive? · At the scene of a car accident: what the law says · All the questions you are afraid to ask
