When trying to decide whether you should add a named driver to your policy, the first question you should ask yourself is, “How safe a driver are they?” For many younger drivers, this is a great way to get a big discount on their car insurance costs, but you don’t want your premium to increase if they need to make a claim!
What is a named driver?
A named driver is another driver you add to your policy so that they are covered by your policy in the event of a claim, which means they can drive your car!
What insurance coverage does a named driver have?
When you add a named driver to your policy, they will get the same coverage as you do. So if you have taken out a comprehensive policy, the named driver will also be insured as fully comprehensive.
Will adding a named driver affect my no-claims bonus?
Just because you add a named driver to your policy does not mean you will lose your no-claims bonus. However, any claims made on the policy will most likely affect your no-claims bonus. So if your named driver has an accident, kiss good-bye to your bonus for a while! Typically, named drivers can’t build up a no-claims bonus of their own until they get their own policy.
How much does adding a named driver cost?
Your insurance company, as part of calculating your premium when adding a named driver, will consider many factors, including:
- The age of the driver.
- Their employment details and marital status.
- Your relationship to the policy holder, for example adding your daughter, son, or partner to your policy.
- Whether the driver has a fully valid or provisional license, and how long have they had it?
- Any disabilities or conditions that the DVLA may be aware of.
- Previous claims and convictions in their driving history.
Watch out for Fronting
It’s an illegal practice and occurs when the owner of the insured vehicle adds themselves as a named driver to the policy and someone else as the main driver to get a cheaper insurance policy. This can result in your car insurance being invalidated.
Temporary car insurance
This is very useful if you have friends or relatives visiting and you want to lend them your car; you could add them to your policy. But you don’t want any awkward moments or worry if something should happen. You do not want your hard-earned no-claims bonus to be affected either. Therefore, if you want to lend your car, suggest they take out temporary car insurance.
If you add a named driver to your car insurance policy often, it can make your premium cheaper. The reason for this is that car insurance companies assume that you will spend less time driving, therefore reducing the chances of you having an accident and making a claim. However, this is not always the case, and if you are adding perhaps a younger driver who has recently passed their test, they may be more likely to have an accident, resulting in a claim, which would cause you to lose your no-claims bonus and most likely result in an increase in your premium.
If younger, less experienced divers in your family are looking to get insured, it might be better for them to get their own policy in the first place. This will offer a quicker route to accumulating their own no-claims bonus.
The choice is yours, but one thing is for certain: whatever your insurance requirements, there is a huge variety of products that can be tailored to your specific requirements.