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3 Important Named Driver Insurance Rules

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Several aspects of auto insurance can be confusing, and named driver insurance rules usually make it to the top ten on the list. Although the number of named drivers in the US is constantly on the rise, a lot of people still don’t know much about it.

So, we thought to help you out by finding out all you need to know about named driver insurance and putting it together in this article. Before you include a named driver in your policy, here’s what you need to know.

Who Is A Named Driver?

A named driver is a person that you include in your auto insurance policy while you stand in as the main driver. This driver is also known as a second driver. The named driver is eligible for any coverage that the main driver has.

It is generally believed that the named driver does not drive the car often, so the risk is lower. If you are in a family, It is advisable to put the person who drives more than others as the main driver, then include others in the policy as named drivers.

How Does A Named Driver Affect My Premium As The Main Driver?

The decision to include someone in your policy can affect your premium depending on your age as the main driver. If you are a younger driver and you include either of your parents or someone significantly older than you, your insurer automatically assumes that your driving will be safer, which will result in a reduction in your premium.

The opposite applies if you are a parent, or someone older who includes your child or someone significantly younger as a named driver on your policy. The cost of your premium will be higher because it is assumed that your car is at more risk than it would be ordinarily.

So, before adding a driver to your policy, it is advisable to weigh your options and decide if it is favorable for you, then you can go ahead to purchase a policy.

Some Named Driver Insurance Rules

Below are some named driver insurance rules you should take note of:

  • They cannot insure another person.
  • Premium depends on who the named driver is.
  • The driver must be an occasional driver.

#1. They Cannot Insure Another Person

A named driver cannot insure another person because the policy is not originally theirs. If they wish to do this, they would have to take out a new policy in their name and it cannot be for the same car.

#2. Premium Depends On Who The Named Driver Is

If you are a main driver, adding a driver to your policy can affect your premium positively or negatively depending on the age of the driver. If the driver is younger, you will be charged a higher premium due to the added risk you’re incurring. And if the driver is older, your premium could be reduced.

#3. The Driver Must Be An Occasional Driver

The only reason a driver can be listed as a named driver on one’s policy is that the person must be an occasional driver. If the person uses the car frequently, they would have to take out a policy on their own.

If a named driver uses the car as much as the main driver, or even more, it could incur some legal action from the insurers.

Why Getting A Named Driver May Be A Good Idea

Here are reasons you might want to consider getting a named driver:

  • Lower premiums
  • Coverage
  • Plan Flexibility

1. Lower Premiums

This is probably the best advantage one can get from having a named driver. But this only applies if the named driver is older than the main driver.

2. Coverage

A named driver is allowed as much as much coverage as the main driver. This means that the percentage of coverage the named driver gets depends on what the main driver purchased. The different types of coverage available include;

  • Third-Party
  • Comprehensive

3. Plan Flexibility

Named driver’s insurance is already a mark of flexibility. Instead of insisting on having each driver purchase a different insurance policy, companies allow you to include a named driver, and the good news is that you can have more than one.

Named Drivers and No-Claims Discount

Having a no-claim record helps you in getting a discount and even buying a policy altogether. It is also transferable from one insurer to the other. But does this apply to a named driver? Well, it depends on the insurance company.

Some companies will not consider your no-claims record as a named driver no matter how clean a record you have. But some other companies like Allianz and Sainsbury’s Bank can allow you to build up a no-claims discount as a named driver as long as you are going to get a policy from them.

How Do I Add A Driver To My Policy?

Adding a driver to your policy works in two ways. The first is when you buy your policy and the second is after you’ve purchased your policy.

Although this cannot be helped sometimes, it is advisable to add a driver to your policy as you purchase it. In a situation where this cannot be done, you would have to contact your insurer who would take you through the process. You will definitely be required to pay some fee.

Requirements For A Named Driver

You could be required to provide more or less details depending on your insurer. 

Here are the general requirements for adding a named driver to your policy:

  • Name
  • Date of Birth
  • Marital Status
  • Nationality
  • Whether they own or drive another vehicle
  • Occupation
  • Type of driving license they hold
  • Their driving and claims history

Fronting: Named Driver Insurance Fraud

Sometimes people try to play smart by putting the main driver of a car as the named driver on a policy. They usually do this to reduce the cost of their premium.

For example, a parent may include their (younger) child as the named driver on their policy while the child is the one primarily using the car. This is a fraud, and in auto insurance terms, it is known as fronting.

Fronting is seen as a crime and it is a punishable offense. In addition to possible jail terms and fines, one will lose all no-claims records and even the insurance. Also, other insurance companies, may not like to take you on as a client. We advise you to never try this as an option.

Can You Be A Named Driver On More Than One Car?

Yes, this is very possible. You are allowed to be a named driver on more than one car and even have a policy for your car. Note, that you are only eligible for coverage from insurers of a car that you are a legally named driver.

This means that if you drive a car that you are not a named driver for, in the event of an accident, you will not be protected by insurance.

Frequently Asked Questions

[sc_fs_multi_faq headline-0=”h3″ question-0=”Can I add or remove named drivers at any time?” answer-0=”Yes, you can usually add or remove named drivers at any time. However, it’s best to check with your insurance provider to confirm their policies.” image-0=”” headline-1=”h3″ question-1=”Can a named driver drive any car?” answer-1=”Generally, a named driver is only covered to drive the specific vehicles listed on the policy. If they drive a different vehicle, coverage may not apply.” image-1=”” headline-2=”h3″ question-2=”Who should be named as a driver?” answer-2=”You should name anyone who will occasionally drive your vehicle, including family members and friends.” image-2=”” headline-3=”h3″ question-3=”Can a named driver make claims on my policy?” answer-3=”Yes, a named driver can make claims on your policy, and this will affect your premium and no-claims bonus.” image-3=”” headline-4=”h3″ question-4=”What happens if a named driver has an accident?” answer-4=”If a named driver has an accident, it will be recorded on your policy and may impact your premium and no-claims bonus.” image-4=”” count=”5″ html=”true” css_class=””]

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Conclusion

We hope we have been able to help you understand the ups and downs of a named driver, including how best to go about adding one to your policy. If you really want to build up your policy even as a named driver, know that some companies offer that option and you can always persuade your primary driver to go for them.

Thanks for your time!

Bye!

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