Is your child in the process of learning to drive? Maybe your partner or friend needs to use your car from time to time. It’s a good thing that other people can use your car, regardless of the reason. Include a named driver on your auto insurance policy for various reasons to ensure coverage in case of an accident.
Adding a driver to your auto insurance policy is known as named driver insurance. It indicates that you have informed your insurance company that a third party may operate your vehicle. The only drivers covered in the event of an accident by a named driver auto insurance policy are those who are expressly named on the policy. You wouldn’t be covered if you let your friend use your car while they’re not on the named driver policy and they get into an accident.
What is a Named Driver
A named driver, also known as an additional driver, is an insured individual who drives a vehicle not registered in their name. Policies typically permit up to three named drivers, and this additional driver has the same level of coverage as the primary driver. Families with multiple drivers or those who occasionally share their car with others may find this to be especially helpful.
Can I Save Money by Adding Someone to My Car Insurance
Insurance companies view drivers who are students or who are young or inexperienced as high risk. This implies that your premium will probably be much higher. For individuals aged 17 to 24, the average cost of auto insurance is £1,861. However, sharing your vehicle with an experienced driver can potentially lower the cost of adding a driver to your policy.
The shorter duration of driving the car may reduce the likelihood of an accident and the need for a claim. The primary driver should be the one who drives the car most frequently. If not, they might be charged with fronting for auto insurance. You might also consider getting a telematics policy if you’re trying to lower the cost of your auto insurance. Your car is equipped with a “black box” that tracks your driving behavior and relays the data to your insurance company. You may be able to lower your premium if you can demonstrate that you drive safely.
Advantages of Named Driver Insurance
These policies are popular among insurers because they keep them informed of all the risks that are posed to them. The insurance company can precisely price the policy to fit the policyholder’s profile because it has the driving record and age of every covered driver on file.
Because named insured insurance policies can be less expensive, customers may choose to purchase them. The driving records of each named driver on the policy determine how much the named driver’s auto insurance costs.
Disadvantages of Named Driver Insurance
The primary drawback of named driver insurance is fairly straightforward: insurance coverage is exclusively available to the listed drivers. Your insurance provider may refuse to cover you even if you’re in the car with them, such as in an emergency. Regarding this coverage, many states have very specific language requirements.
For instance, in Texas, insurance agents must provide potential customers with named driver policies in both verbal and written form, and both parties must sign the agreement.
What is Fronting
Fronting is the practice of purchasing auto insurance policies on one’s vehicle, with oneself as the named driver and another as the primary driver to lower premiums. Driving without insurance is strictly prohibited, and if a claim is made, your policy will be void. It’s crucial to provide accurate and up-to-date information and promptly inform us of any changes in your circumstances, such as changing your address or employment.
How Much Does a Named Driver Insurance Cost
Any additional drivers you add will have their risk evaluated by your insurer, which will be factored into your premium. We will take into account several things, such as their age, employment status, length of license, and relationship to you.
For example, you should budget extra if you include your 18-year-old son, who passed his test last week. However, including an experienced spouse with a 20-year clean license may potentially reduce premiums. Young or recently test-passed drivers may benefit from the influence of an experienced named driver, lowering their auto insurance premium.
How Do You Add a Named Driver to Insurance
In most cases, you can add a new policyholder by getting in touch with your insurance provider if you already have one. During the quote process for a new policy, you will have the option to add a driver to your policy.
To include a driver, the following information is required:
- Complete name.
- Birthdate.
- Employment.
- Driving expertise.
- Statements from the previous five years.
- Convictions for driving in the previous five years.
It will not impact your no-claims discount amount if you add a named driver with no auto insurance history. However, your no-claims discount will be impacted in the same manner as if you were the driver if a named driver gets into an accident while operating your vehicle.