Named Driver Insurance
Car insurance can be expensive, and certain things like having had an accident in the past, having a prior motoring conviction, or even just being young, can drive the costs up.
By adding yourself as a named driver to the insurance policy of someone more experienced, or by adding them to yours, you can reduce costs significantly.
How does named driver insurance work?
If you are the primary user or owner of your vehicle, i.e. the main driver, and you want to let someone else drive it from time to time, then you will need to add them to your insurance policy as a named driver in order to stay within the boundaries of the law.
Once a person is added to an insurance policy as a named driver, they will experience the same level of cover as the main driver, as specified in the policy documentation.
Some insurance policies will offer the holder third party cover when driving someone else’s car but it is important to remember that this will only be third party cover (i.e. against damaging another vehicle or its passengers), and you will not be covered against damage to the vehicle you are driving. If you want to be fully covered driving another person’s car, you’ll need to become a named driver on their policy.
Many students and young people faced with often prohibitively high insurance premiums opt to be insured on their parents’ car as a named driver (or vice versa) reducing costs for both parties involved.
Will adding a named driver make my insurance cheaper?
Car insurance premiums are calculated based on the risk of you, the driver, being involved in any kind of claim-worthy incident. If you are reducing the amount of time you spend behind the wheel, as you would be by adding a named driver who sometimes uses the car on to your policy, you are therefore reducing the amount of time during which an accident could occur.
As a general rule then, adding a named driver will reduce the cost of your premiums. It works the same the other way around: being a named driver on someone else’s policy will be cheaper than taking out a policy of your own, especially if you are aged 17-25.
You should be aware though that as a named driver, you are unlikely to be able to build up a no claims discount over time – something that can prove invaluable on the hunt for low cost car insurance.
Occasionally your insurer will allow you to build up a no claims discount but it will come with conditions like forcing you to stay with the insurer in order to capitalise on it – which can prove to be a false economy in the long run if cheaper premiums are available elsewhere.
The final thing to be aware of when it comes to named driver insurance is to avoid what is known as ‘fronting’.
This is when you are on the insurance policy for the vehicle in question as a named driver when in fact you are the main driver.
If you have some kind of accident, try to claim, and are caught out fronting, not only will your claim be made invalid but you will find any insurance you take out in the future far more expensive as a result. You could also receive six points on your license which, for younger drivers, equals and instant ban.
So as long as you avoid fronting and take note of the potential effects on your no claims discount (or lack thereof), then named driver insurance could be just what you need to get yourself on the road at a low cost.
Compare the cost of adding car insurance policies with named drivers by using our free and impartial comparison service today, saving you money when you need it most.