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Named Drivers

Named drivers on your insurance policy can make sense, as not only does it mean a person known to you can drive your car in the most cost-effective way possible, but it also can mean a chance for many young drivers to get affordable insurance cover.

But, as always, there are pros and cons.

Having a policy which allows anyone to drive your car is an expensive business and maybe only really necessary should your lifestyle, or occupation, mean that different people from day to day can have access to your vehicle. A farmer for example might want his seasonal help to drive his vehicle, so having to name a vast number of different drivers at different times of the year is nigh on impossible.

So, you telephone your insurance company and place on the policy a named driver. You provide the details of the person and it should not be an exorbitant cost to name them on the policy. There will of course be a limit to how many you can name, depending on the policy you have.

But the person coming onto your policy cannot bring their no-claims bonus. And there also lies the rub. If the named person has an accident, then your no-claims bonus will finish, if you make a claim. Now, that can be a costly thing to happen if you have built up a good record. Of course, you can avoid this if you have a policy which offers a no-claims bonus protection, but nonetheless, you will have to examine the ‘…what if…’ scenario. Make sure you can afford it, or have it covered.

Of course, placing a named driver on your insurance can be a good way of parents getting their children affordable insurance. The upside is that they will be getting valuable driving experience, the downside of course is that you are threatening your no-claims bonus (unless, as said earlier it’s protected), and the named person won’t be building up their own no-claims bonus either which, over the years, could prove costly.

Named drivers on your insurance policy is a sensible idea, just make sure you know the implications of that person having a bash and you footing the bill.

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