What being a named driver means for car insurance?

Usually if a car is shared among a couple of people, only one car insurance policy needs to be purchased rather than having a policy for each person who wants to drive the car. For instance, if there’s mum, dad, son and daughter, dad can be the main driver on the policy and mum, son and daughter can become named drivers on the same policy.

This is all good except for one very important clause – named drivers shouldn’t be using the car more than the main driver. If the son is going to take the car to work rather than dad, then he should be the policyholder (main driver) and not dad. Putting the father as the main driver will undoubtedly reduce the car insurance quote because of the driving experience he has combined with the no claims bonus accumulated over the years but this is an illegal practice nowadays and if get caught, then the insurance policy is automatically invalidated.

It is worth noting that named driver insurance is very popular because many people share a single car among themselves but there’s a major drawback to it nevertheless. Only the main driver accumulates no claims bonus for each year which has been passed without any claims to the insurer. Additional drivers or named drivers do not get any of this and should they decide to start a car insurance policy in their own names, they would unfortunately do so without any No Claims Discount (NCD) even if they haven’t made any claims whilst being on somebody’s else policy. Quite unfair but this is the reality that most named drivers come across when they look for their own car insurance.

Some companies nowadays are offering a discount to named drivers though, similar to NCD that main drivers get but different in the sense that this named driver no claims discount is not transferrable. This means that named drivers cannot use this discount with another car insurance company except the one which has given it to them. One other thing about this No Claims Bonus (NCB) being issued to named drivers is that it is not equivalent to the NCB given to policyholders; it is usually a lot less than that.