On insurance as a named driver?

Hi guys,

I'm sure this has already been discussed but I've gone through a few pages and can't find anything detailed on it. Bit of background, I pass my test today (woo :P) and up to now have been insured on my Mum's 2004 Fiat Punto as a named driver (its about £450 extra per year). Now I've passed I'd really like the freedom of having my own car.

Looking around on eBay I've seen cars go for under £1000 that I like (VW Polo is my favourite) which, as a one-off cost, is manageable. However, as you all know its the insurance which is the killer so I was wondering the best way to go about it. As a student I absolutely cannot afford £2000/year to insure my own car and I know a few friends who have recommended getting my Mum/Dad to insure it and put me down as a named driver.

I did an online Tesco insurance quote with my Mum as the 1st driver and myself as the 2nd driver - The quote comes out to about £300, which seems kinda low. Just wondering, is this a good/legitimate way of doing it? Will have to stick with my Mum's car if not :P

Thanks in advance for any help,

-Will

Reply 1

Sync

14

The only problem with insuring yourself as second driver is that you tend not to get your own no claims bonus; which obviously makes insuring a car in your own name more expensive in the future. However, if you're insured with Direct Line, even named drivers can accumulate no-claims bonus (I think!). It's a legitimate way of doing it. However, I seem to remember hearing that insurance companies are getting wise to this 'named driver' lark. If you have an accident and the insurer decides to investigate, if they find out that you were the 'main driver' (i.e. you were the person who drove the car most often), then they can refuse to pay. Can't remember where I heard that, and can't see how it would be enforced to be honest...but it's worth bearing in mind.

Reply 2

Clubber Lang

15

The insurance can refuse to pay out if they find out if you are the main driver - named drivers are not meant to be the main drivers.

Saying that I would say go for it as just about everyone I know does it.

Your main problem is what will happen to your Mums NCB if you crash - will it go back to 0 if you crash her car - and then cost her insurance more in the long run?

That was the main reason I didn't for that.

In my first year I paid 1150 ins - 2nd year 600 - hopefully next time it will go down to around £400.

Reply 3

dave134

1

lemonadeX

I did an online Tesco insurance quote with my Mum as the 1st driver and myself as the 2nd driver - The quote comes out to about £300, which seems kinda low. Just wondering, is this a good/legitimate way of doing it? Will have to stick with my Mum's car if not :P

Thanks in advance for any help,

-Will

The important part both for cost and actually being insured is not who is the policy holder and who is the named driver, rather who is the "principle" driver, i.e. the one that uses the car the most.

If you are only 17, then I believe you will have to have one of your parents as the actual policy holder (as you cannot enter binding contracts until you are 18), but if you are to be the principle driver then you must tell them so. Online quote tools probably don't have this option so you would need to call them for a quote.

As for £300 per year for you as named driver, that seems too cheap by far. The quote may be only valid for those over 25, or you might have accidentally declared the same no-claims bonus as your mother etc.

Reply 4

Konstantinerox

dave134

If you are only 17, then I believe you will have to have one of your parents as the actual policy holder (as you cannot enter binding contracts until you are 18),

Not true.

If you wish to pay for your insurance by installments, you will be entering into a consumer credit agreement. If you are under the age of 18, it will be necessary for a party over the age of 18 to enter into said agreement on your behalf - as you cannot enter into a credit agreement before the age of 18.

If, however, you intend to pay your premium upfront, the majority of companies will happily insure a 17 year old driver on their own. (Although it is worth noting that some companies do have their own policies, whereby they will not insure drivers under 18).

Whilst it can be said to be technically and legislatively true that a person under the age of 18 ( a "minor") cannot enter into a binding legal contract, there are such a great number of 'legal loopholes' that it is practically unenforceable.

Reply 5

dave134

1

Ah, yes I forgot about the ability to pay upfront.

Reply 6

sniperwookie

lemonadeX

Just wondering, is this a good/legitimate way of doing it? Will have to stick with my Mum's car if not :P

It's called 'fronting' and is not legit. You would basically be driving around without insurance, and the insurance company would not pay out if they found out. If your mum is already insured on her own car you'd be hard pushed to explain the need for a second old car, for example. You might be best remaining a named driver on your Mum's car, but her taking out a protected NCD so if you do have an accident she won't lose her discount.

As someone mentioned some companies like Direct Line are offering NCD to named drivers, so you could earn some for a year or two yourself, however it is non-transferable - you'd have to stick with the same insurance company as other firms won't recognise it.

Reply 7

Ryan

10

jojo72

The insurance can refuse to pay out if they find out if you are the main driver - named drivers are not meant to be the main drivers.

Saying that I would say go for it as just about everyone I know does it.
.

Exactly

On insurance as a named driver?

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