Named Driver Car Insurance

How does named driver insurance work?

Some groups of motorists such as young drivers and those with motoring convictions attract higher car insurance premiums because they are seen as a higher risk.

One option these drivers have to keep costs down is to add an older and/or more experienced driver to the policy as a named driver, or to become a named driver on someone else's policy.

If you are thinking of adding someone to your policy as a named driver or becoming a named driver on someone else's policy to bring the cost down, there are a few things you need to look out for, as we will explain in this guide...

Are named driver car insurance policies cheaper?

When you take out a car insurance policy, you'll be asked for the name and details of the main driver of the vehicle and whether you would like to add any other drivers the policy.

The named driver will have the same level of cover as you.

Adding named drivers to your policy can help to lower your car insurance premiums because in theory, you're not the sole driver of the car and so the less time you spend in the vehicle, the less time there is for you to be involved in an accident and have to make a claim.

It also works the opposite way. Say, for example, you can't afford a car of your own but your parents are happy for you to drive their car occasionally. Your parents could add you as a named driver to allow you to use their car legally.

Generally speaking you won't be able to earn any No Claims Discount (NCD) as a named driver. Some insurers do allow named drivers to earn their own NCD to use on future policies as the main driver, but usually only if they stick with the same insurer.

The dangers of fronting a policy

It has already been demonstrated that named driver insurance policies can work out cheaper. However, some drivers have been known to take out a policy in the name of someone else with more experience, or fewer driving convictions and added themselves as a named driver on the policy.

This type of named driver car insurance policy might work out cheaper, but it's illegal. The process is known as 'fronting' because a 'false' main driver fronts the policy for the genuine main driver of the vehicle.

If you were to be caught out on a fronted car insurance policy, your insurance could be invalidated, you can be forced to pay the correct premium in one lump sum or your insurance can be cancelled, which you would have to declare to other insurers in the future - who could refuse to insure you on those grounds.

Worse still, if the younger driver makes a claim and the insurer finds they are the genuine main driver on the policy, their insurance can be considered invalid and they'll receive six penalty points on their license for driving without insurance.

This is particularly bad for new drivers as six points equals an instant ban. This can make it even more difficult to get cheap car insurance in the future.

How to get cheaper car insurance

As well as using named driver insurance, there are plenty of other ways to lower the cost of car insurance - not least driving in a sensible and careful manner. For every year you're not involved in any accidents you'll earn a year's No Claims Discount, which will bring your premiums down.

Increasing the amount of excess you're willing to pay in the event of a claim, you'll be rewarded with cheaper premiums. Of course it needs to be a realistically affordable amount, but careful driving should ensure you never have to make a claim and pay it.

If you're a new driver looking to lower your car insurance costs, the Pass Plus course is an option. This six-module, advanced driving course teaches you things you won't have learned on your standard driving lessons and can earn you a discount on your premiums with the majority of insurance providers.

For more ideas on how to get cheap car insurance, take advantage of our money saving tips.