Joint car insurance explained


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Car insurance can be pricey whoever you are, but premiums can be particularly eye-watering for new drivers, for teenagers getting behind the wheel of their first car – and for anyone considered to be high risk by an insurer when compared to what might be termed ‘standard’ drivers.

But there is a simple way for perceived high risk drivers to slash the cost: add an experienced driver to form a joint car insurance policy, or opt to be a named driver on another policy.

This also works if you live with a partner, as you can pick a joint car insurance policy if you have a single car you both share, so you don’t face forking out for two lots of cover.

How does joint car insurance work?

When you apply for a motor insurance policy you’ll need to give all your details, including those of anyone who will also be driving the car.

With a joint car insurance policy you will both have the same level of cover, and it can help to reduce your motor insurance premiums.

This works if one of you has a good driving history with no claims or convictions, and is therefore considered less risky by the insurer.

The joint car insurance premium will also be based on each of you spending less time driving the car than if it were solely under one name.

A typical example of the benefit is in the case of young drivers passing their test for the first time and wondering how they can afford cover given the sky-high premiums of many policies.

They can add their name to a parent’s policy, enabling them to use the car and reduce the cost of car insurance cover.

Avoid ‘fronting’!

Remember that, by taking a named driver or joint car insurance policy, you normally won’t be entitled to build up a no-claims record.

So you are unlikely to benefit from reduced car insurance quotes as a result of a no-claims discount (NCD) in the future (unless, in some cases, you stay with the same insurer).

The concept of a named driver or joint car insurance policy is tempting, as it can significantly slash your premiums. However, make sure you stick within the law.

The main driver of the vehicle must hold the car insurance policy in their name, or they are at risk of ‘fronting’ – a form of car insurance fraud.

While it can be tempting to reduce your car insurance premium in this way, actually claiming an experienced driver is the main driver when this isn’t the case risks your insurer refusing to pay out, a prosecution for fraud, and being unable to find cover in the future.

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