Children are costly creatures, especially for working parents. If you go out to work and pay a nanny to look after your children, it could cost as much as £12 an hour - or £300 for a part-time nanny working 25 hours a week. But many families choose to employ a nanny because the child can then stay in its own home and enjoy the luxury of one-to-one attention.
Perk of the job
Nannies can either live in or out, but almost all are allowed to drive the family car, either as a perk of the job or as a practical way to transport the children to play dates, swimming lessons and other activities. And it is up to the parents to make sure that appropriate car insurance is in place.
Penalties for driving without insurance
The penalties can be stiff if you fail to insure your nanny. It is an offence both to drive without insurance and to allow someone else to drive your car without insurance, so you could end up with penalty points on your licence and even a fine. But that’s not all. The motoring conviction would make it very difficult for you to find affordable cover in future as many insurers would simply turn you away.
Is your nanny already insured?
If you nanny has comprehensive insurance for her own car, she might already be covered to drive your vehicle. But you should check the wording as there will be restrictions. Policies that allow you to drive any car usually impose an age limit of 25 – and the cover will most likely be third party only. In other words, it is only really appropriate for use in an emergency and is not suitable if your nanny will be driving the family car on a regular basis.
Adding a named driver
The best way to insure your nanny to drive the family car is to add her to your own comprehensive policy as a named driver. The insurance company will ask for details such as the nanny’s date of birth and will adjust the premium accordingly. The cost of adding a named driver varies, but it is often cheaper than buying a separate policy for the nanny. However, the premium loading will depend to a large extent on the nanny’s age and driving history.
Risk to your no claims discount
If you add a named driver to your comprehensive insurance, your no claims discount (NCD) is at risk. If the nanny has an accident in the car that is her fault, it could jeopardise your NCD and bump up the cost of cover in the future. You should also bear in mind that a named driver cannot normally build up their own NCD. However, some companies will take the nanny’s claims history into account if he or she goes on to buy their own insurance with the same firm.
Your nanny will no doubt put a strain on the family budget, so it’s more important than ever to get a good deal on your car insurance, for you and your nanny. It’s quick and easy to compare cheap car insurance quotes using MoneySupermarket’s online comparison service, saving you time as well as money.