What is named driver car insurance?

Key takeaways

• A named driver is an additional individual insured to drive a vehicle not
  primarily under their name

• Make sure you accurately declare the main drixver to avoid illegal practices like fronting

• Named drivers can be covered under third-party, third-party fire and theft,
  or fully comprehensive insurance policies

What is named driver car insurance?

A named driver, also referred to as an additional driver, is an individual who is insured to drive a vehicle that is not primarily under their name.

This additional driver enjoys the same level of cover as the main driver, and it's common for policies to allow up to three named drivers. Some insurers even allow five additional drivers. This can be particularly useful for families with multiple drivers or for those who occasionally share their car with others.

Who is the main driver?

The main driver is the person who uses the car most frequently and has a significant impact on the insurance premiums.

Is the main driver the policyholder?

The main driver on a car insurance policy is often the policyholder (the person who takes out the insurance policy and pays for it) but they don’t have to be. For example, the policyholder might be a parent who insures the car for their child to use as the main driver.

Insurance providers assess the risk based on the driving habits and history of the main driver, which is why it's crucial to accurately declare who the main driver is to avoid the illegal practice of car insurance fronting.

What is fronting?

Fronting is a type of car insurance fraud where the main driver on a policy is inaccurately declared to reduce premiums. This is illegal and can lead to severe consequences, including voided policies and prosecution for fraud.

Do I need named driver insurance?

Yes, you need named driver insurance if you want to drive another person’s car and you don’t have your own insurance policy which allows you to drive other cars (known as DOC cover) or have temporary car insurance.

Named driver insurance is generally useful for younger drivers who already face high premiums because of their age and the associated risk factor. If you’re a young driver you can either:

• Be added as a named driver to another car insurance policy. If, for example, you don’t have your own car yet

• Add a more experienced driver, such as a parent or guardian, to your insurance policy. This means your insurer assumes you will spend less time behind the wheel as you’re sharing the vehicle with someone else and it may lower the risk and cost of your insurance

Named driver insurance is also a practical solution for sharing a vehicle without the need to purchase separate policies for each driver.

💡 Top tip: Even if your car insurance includes DOC cover it’s likely to be third-party cover whereas named drivers have the same level of cover as the main driver

What are the advantages of adding a named driver?

• Shared cover: The named driver enjoys the same level of cover as the main driver

• Cost-effective: It can be more affordable, especially for young drivers

• Flexibility: Named drivers can be added on a permanent or temporary basis

• Extended features: Any additional features of the policy apply to the named driver as well

How do I add a named driver to my car insurance?

Adding a named driver to an existing policy is straightforward. You can contact your insurer or manage it online. For new policies or at renewal, named drivers can be included during the quotation process.

You'll need to provide details such as the driver's name, date of birth, occupation, driving licence details, and any previous claims or convictions.

💡 Top tip: If you add a named driver to an existing policy you may have to pay an admin fee so try to add them when you take out a new policy.

Is temporary car insurance better than being a named driver?

Sometimes, you might need to lend your vehicle for a short period. In this case, taking out short-term car insurance may come as the most affordable solution.

This is because it is available as a standalone option, meaning you will not need to amend your own policy. Depending on your insurer, short-term car insurance can last from 1 hour to up to 90 days.

Will my no-claims bonus be affected by having a named driver?

Yes, your no-claims bonus (also known as your no-claims discount or NCD) is likely to be affected if the named driver has an accident and makes a claim, as it will still be made on your policy. Your named driver also probably won’t be able to build up their own no-claims bonus, which might put young drivers off being added to their parent or guardian’s policy.

They might still be able to earn a discount on their premiums if they stick with the same insurer when they eventually take out their own policy. This will be based on their driving history as a named driver.

💡 Top tip: If you have built up several years of no-claims, you might want to consider taking out no-claims protection. By paying a small ‘protection’ fee to your provider, you won’t lose your discount, or at least all of it if you need to make a claim

📣 Did you know? No-claims bonuses or discounts can give you as much as 30% for one claim-free year and 60% for five claim-free years, according to the ABI.

What are the cover levels for named drivers?

Named drivers can be covered under various policies, including third-party, third-party fire and theft, or fully comprehensive policies. Fully comprehensive cover is usually the most extensive and often the most cost-effective, covering damages to your own vehicle as well as other risks outlined in the policy.

What can I add on to my car insurance?

Car insurance can come with several additional options to enhance protection:

• Breakdown cover: Assistance in case of vehicle breakdown

• Motor legal protection: Cover for legal expenses related to claims

• Personal accident cover: Compensation for serious injury or death in an accident

• Driving abroad: Insurance for taking your car overseas

• Key cover: Reimbursement for lost or stolen keys

• Wrong fuel cover: Cover for misfuelling incidents

These extras apply to all named drivers, ensuring everyone is equally protected.

Will having a named driver affect my car insurance premium?

Yes, adding a named driver is likely to affect the premium you pay. While adding a named driver can sometimes reduce premiums, it largely depends on the profile of the added driver.

Experienced drivers adding younger, less experienced drivers or named drivers who have penalty points or driving convictions might see an increase in their premiums. Conversely, young drivers adding an experienced named driver could see their costs go down.

What are the most common myths about named driver insurance?

It's important to dispel some myths about named driver insurance:

• It doesn't always make insurance cheaper

• No-claims bonuses can be affected

• Comprehensive cover doesn't automatically include driving other cars

• The main driver isn't necessarily the car owner

Misunderstandings can lead to unintentional insurance fraud, so it's crucial to be well-informed.

Can my insurer refuse to add a named driver?

Yes, there are instances where insurance providers may refuse to add a named driver based on their driving record, experience, or the vehicle type. They might also discourage additions by quoting high premiums.

How can I compare named driver car insurance?

The easiest way to find affordable car insurance for named drivers is to compare quotes with MoneySuperMarket. You'll need to provide information about yourself, your driving history, and the car, as well as details for any additional drivers.

When asked if you'd like to add any additional drivers, simply select 'yes.' Don't forget to read our guide for more tips on getting cheaper car insurance.