Do Named Drivers Lower Car Insurance?
What is a Named Driver?
A named driver is an individual who is added to your car insurance policy and is legally allowed to drive your car. This person must be stated in the policy documents and can be anyone from a family member to a friend as long as you get their permission.
Named drivers are different from the main driver. A named driver is someone who uses the car occasionally.
💡 Named Driver Price Tips
- Try adding one or two older, experienced named drivers with a clean licence
- Avoid adding younger or inexperienced named drivers
- Avoid adding three or more named drivers
The table below gives you an illustration as to how adding a single or multiple named drivers might affect your price.
Named Driver Impact on Car Insurance
| Named Drivers |
Named Driver Details |
Premium Change (%) |
|---|---|---|
| 1 | Experienced | Decrease 5-30% |
| 1 | Young (Inexperienced) | Increase 20-100%+ |
| 1 | Experienced with Convictions | Increase 10-40% |
| 1 | Young (Inexperienced) with Convictions | Increase 30-150%+ |
| 2 | 2x Experienced | Decrease 5-35% |
| 2 | 1x Experienced + 1x Young | Increase 10-30% |
| 2 | 2x Experienced with Convictions | Increase 15-45% |
| 2 | 1x Experienced + 1x Young with Convictions | Increase 20-120%+ |
| 3 | 3x Experienced | Decrease 0-10% or Neutral |
| 3 | 2x Experienced + 1x Young | Increase 15-35% |
| 3 | 3x Experienced with Convictions | Increase 20-50% |
| 3 | 2x Experienced + 1x Young with Convictions | Increase 25-130%+ |
Adding a young or inexperienced named driver
How it affects price:
- Increased Premiums: Insurers often raise premiums due to the higher statistical risk associated with young or inexperienced drivers, who are more likely to be involved in accidents.
- Higher Excess: Policies may impose a higher excess for claims involving young drivers, meaning you'll pay more out-of-pocket if an accident occurs.
- Potential Restrictions: Some insurers may impose driving restrictions on young drivers, such as curfews or geographic limitations, to mitigate risk.
- Impact on No-Claims Bonus: If the young driver causes an accident, it could affect the main policyholder's no-claims bonus, leading to higher premiums in the future.
What is Fronting?
Fronting is a fraudulent practice where an individual, often a young driver with high premiums, puts themselves as a named driver and dishonestly puts a more experienced driver, typically a parent, as the main driver of a vehicle, in order to get cheap car insurance.
Insurers consider fronting a serious offence because it distorts the risk assessment process and can lead to significant financial losses. If detected, it can result in the cancellation of the insurance policy, refusal to pay claims, and potential legal consequences.
Research indicates that fronting is prevalent in many regions, with studies showing a notable percentage of young drivers and their families engaging in this practice to manage costs .
Read more about how car insurance companies detect fronting.
Named Driver FAQs
The stated main driver must be the person who does most of the driving. This is not just about mileage but also who drives the vehicle on a daily basis such as commuting to work, school run, social trips, shopping etc.
A named driver is someone who uses the car occasionally. Be careful not to misrepresent who the main driver is as the penalties can be severe.
Generally, named drivers cannot earn their own no-claims bonus (NCB) on another person's policy. However, some insurance providers offer named driver NCB schemes but the bonus earned can only be used with that same insurer.
Adding a named driver can either increase or decrease the main policyholder’s premium, depending on the named driver's age, driving experience, and claim history.
Benefits include potentially lowering your insurance premium, sharing the driving load, and having the convenience of multiple drivers insured on the same vehicle.
Named drivers are only insured to drive the car listed on the policy. They are not typically covered to drive other cars unless they have their own insurance that includes a "driving other cars" clause.
Yes, named drivers can make a claim on the insurance policy if they have an accident while driving the insured vehicle. The claim will affect the main policyholder's no-claims bonus.
If a named driver has a history of claims or driving convictions, it can increase the insurance premium. Insurers assess the risk based on all drivers listed on the policy. Often underwriters will rate based on the 'worst' driver e.g. the most inexperienced or youngest driver.
Most insurance providers allow up to three or four named drivers on a single policy, but this can vary by insurer.
Yes, named drivers can drive the car independently of the main policyholder, as long as they are listed on the policy, have a full licence and have permission from the vehicle owner.
If a named driver has an accident, the policyholder will need to make a claim on their insurance. This can impact the policyholder’s no-claims bonus and potentially increase future premiums. The named driver will also need to declare this accident on any other policy they have or are named on.
Many insurance policies extend coverage to named drivers when driving abroad, but this can vary by insurer and destination. It's essential to check with your insurance provider and possibly arrange for additional coverage if needed.
You will typically need to provide the named driver’s full name, date of birth, driving licence details, occupation, and information about their driving history, including any accidents, incidents or claims.
Yes, you can remove a named driver from your policy at any time. Contact your insurance provider to make the necessary adjustments. This may also affect your premium and you may get charged an administration fee.
Fronting occurs when a lower-risk driver, like a parent, is listed as the main driver, while the higher-risk driver, like a young person, is listed as a named driver. This is illegal because it misrepresents who the primary driver is, leading to lower premiums fraudulently. It is illegal and the penalties can be severe.
If a named driver has an accident, the policyholder will be responsible for paying the excess. The amount can vary, and some policies may have different excess amounts for named drivers.
Yes, a named driver on one car insurance policy can be the main driver on another car's policy. However, they must be accurately listed according to their usage of each vehicle to avoid any issues with claims.
This depends on the type of policy you have. If the policy includes business use coverage, then a named driver can use the car for business purposes. It’s important to verify this with your insurance provider.
Adding a young or inexperienced driver typically increases the insurance premium due to the higher risk associated with these drivers. It's advisable to compare quotes to understand the potential impact.
Any medical conditions that could affect the named driver’s ability to drive safely must be declared to the insurance provider. This may affect the premium or the ability to add the named driver to the policy.
If a named driver is involved in a hit-and-run accident, the policyholder should report the incident to the police and the insurance company as soon as possible. The insurance company will guide you through the claims process, and it may affect the no claims bonus and future premiums.
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