Cheap Named Driver Insurance Guide

Named Driver InsuranceDuring the first few years after you have obtained your driving license, it can be extremely costly to purchase the necessary car insurance to legally operate your vehicle. One of the reasons newer drivers face higher insurance rates from insurance companies is because they are considered to be higher risk prospects due to their relatively limited experience behind the wheel.

Additionally, newer drivers may find it more challenging to purchase car insurance because they may have lower incomes due to being younger.

As a result, one option that is frequently considered by newer drivers who are looking for ways to save money is to purchase a named driver car insurance policy.

What are the benefits of having a named driver car insurance policy?

When you have a driver with more driving experience on a car insurance policy, you may be able to secure a lower insurance quote from insurance companies, as the more experienced driver suggests there is a lower amount of risk to potential insurers. Additionally, a more experienced driver will typically have several of years without having made any claims, which can result in a no claims bonus that can be used to further reduce the price of the insurance policy premium.

At this point, you may wonder if obtaining a named driver car insurance policy is the best choice for you. You may also wonder what you need to keep in mind before you purchase this particular type of insurance cover.

What are the different types of named driver car insurance policies in the UK?

There are two basic types of named driver car insurance policies in the United Kingdom that you can choose from if you are considering this option as a way of lowering your potential insurance premiums.

The first option is to add yourself as a named driver to the insurance policy of a driver with more years of driving experience. The second option is to buy the car insurance policy on your own so you are the main driver, and then add a driver with more years of driving experience as the named driver.

What are the advantages and disadvantages of a named driver insurance policy?

The first of the two options can work as a short term solution if your goal is to obtain car insurance that is affordable as quickly as possible so you can continue to drive a vehicle. This can be a particularly useful option to choose if you are a starter or learner driver who is looking for a source of insurance so you can practice driving in a car that belongs to your parents. It can also be a useful option if you have recently passed your driving test, meaning you do not have much driving experience, or if you do not have a frequent need to drive your car.

In the long term, however, it can present a problem if you are a named driver on someone else’s car insurance policy. The biggest problem is that while there are a few insurance companies in the United Kingdom that will allow named drivers to build up their own credit for not filing any claims, the majority of insurance companies will not allow this feature, and the remaining companies that do will typically only apply this discount if you start out with an insurance policy with the company itself. As a result, if you choose the first option, you may find it more difficult in the future to find cheaper car insurance cover.

Additionally, if you declare yourself to be the named driver on the car insurance policy but actually plan on being the main driver of the vehicle, it is increasingly likely that the insurance company will void your insurance cover when they find out. The second option, therefore, while more expensive initially, is likely to be the better and safer option for someone looking for insurance cover.