Does adding a named driver reduce insurance?
Adding a named driver can either reduce or increase the cost of your insurance. If you’re a young driver, it can help to add someone with more experience. But if you’re an experienced driver who is adding somebody who has just passed their test, you may find that your policy increases in price.
It’s important to weigh everything up before making a decision. When you add a named driver, your insurer will consider a range of factors to arrive at a figure, including the named driver’s:
Insurance is more expensive for younger drivers, especially if they are under 25. This is because historical data has shown that younger drivers tend to have more accidents. This doesn’t mean that you’re more likely to have an accident as a younger person, or that you aren’t a safe driver. It just means that the data car insurance companies have, makes insurance more expensive for younger drivers.
Providers look at your employment status when figuring out the cost of your insurance. So, whether the named driver has a job, is self-employed or is not working at the moment can affect the price of your insurance. This varies between providers, so make sure you shop around when you come to renew your car insurance.
Their relationship with you
Their relationship with you, (the policyholder), is also taken into account. Some providers will only add a named driver if they are your child, sibling, spouse or partner, or your employee.
It’s worth keeping this in mind, because you may have less choice and have to pay more if you want to add somebody who is outside of these groups. You may also have to take out a special type of insurance if you run a car leasing company.
What type of driving license they have and how long they have had it
How long the named driver has had their license, as well as what type of license they have, also plays a part in the price. For instance, a driver who has just passed their test will be more expensive to add than one who has been driving for many years.
Past claims or convictions
The amount of claims the named driver has made previously is also a factor – the insurer will conclude that they are more likely to make another claim if they’ve made several before.
Convictions tell the insurer that they aren’t the safest driver, so unfortunately having multiple convictions will also bring the price up drastically.
Additional vehicles they may drive
Some insurers may give you a discount if the named driver has another vehicle that they are insured on. This is because they would be considered to be a more experienced driver and therefore less likely to make a claim or have an accident.
What type of insurance they have and how long they’ve had it
Again, if they have a full insurance policy and have had this for a while, you might find yourself getting cheaper insurance by adding them to your policy.
Note: There may be an admin fee to add a named driver to your policy, so it might be worth checking with your provider what and how much this is.
Be aware of fronting car insurance
If you’re considering adding a named driver in order to reduce your premium, you should be wary of fronting. This is because fronting is fraud, and therefore is illegal.
But what is fronting? If an older person with a lot of driving experience took out a car insurance policy in their name, when actually a younger person was the main driver, that would be fronting. Essentially, it’s taking out an insurance policy for somebody else in your name.
People do this because it can make insurance cheaper. But it would invalidate your policy and you could face criminal charges if caught.
How many named drivers can I have on my insurance?
How many named drivers you can have on your insurance depends entirely on your policy. It varies between providers so you may want to consider switching to another insurer if yours doesn’t allow you to add on multiple people.
Another option you may want to consider is a multi-car insurance policy. This is where you insure multiple cars through the same provider. It might be a good idea to research these to see if they are a better fit for your needs.
Do named drivers get no claims?
A no-claims bonus is where you build up a history of not having claimed, allowing you to get discounts on your car insurance.
It’s not normally possible to build up a no-claims bonus history as a named driver in the same way that you can as the main policyholder. Some insurance companies do allow it, but they’d usually only be able to transfer it to their own policy with the same insurer.
This means that you wouldn’t be able to switch providers and keep your no claims bonus. So, it’s worth thinking about whether it might be better in the long run for the person needing insurance to take out their own, full policy.
Does adding a named driver affect my own insurance?
It can do, yes. If a named driver has an accident in your car and they are at fault, a claim will still need to be made on your insurance policy. This could affect your no claims bonus and lead to your insurance rising in price. You should be aware of this before adding a named driver to your policy.
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