Being A Named Driver On Parents Insurance

What You Need to Know About Being a Named Driver on Your Parents’ Insurance

The Basics of Named Driver Insurance

If you’re a young driver, you may have considered taking out a policy on your parents’ car in order to save money on your car insurance premiums. Being a named driver on your parents’ insurance is one way to do this, but there are a few things you should know before you make this decision.

Named driver insurance is when you are added to your parents’ policy as a named driver. This means you are covered to drive the car under the terms of the policy, but you are restricted in certain ways. Generally, you are only able to drive the car when your parents are in the car with you, and you may also be restricted to a certain amount of mileage.

It can be a good way to save money on your car insurance premiums, as the cost of adding a young driver to a policy can be high. But there are a few things to consider before you go ahead with it.

The Pros and Cons of Being a Named Driver

The main benefit of being a named driver on your parents’ insurance is that it can save you money. As mentioned above, the cost of adding a young driver to an insurance policy can be high, so being a named driver can help to reduce your premiums.

It can also be a good way to get some driving experience, as you’ll be able to practice in your parents’ car under their supervision. This can be beneficial if you’re a new driver, as it can give you a chance to get used to driving and build up your confidence.

However, there are some drawbacks to being a named driver on your parents’ policy. Firstly, you may not be able to drive the car on your own, as you are restricted to only driving when your parents are in the car with you. This can make it difficult to get around if your parents aren’t available.

Secondly, you may not be covered for any damage you cause to the car, as you are not the policyholder. This means you could be liable for any repairs or replacements that need to be made.

Finally, being a named driver on your parents’ policy can affect your No Claims Bonus if you decide to take out your own policy in the future. This is because the No Claims Bonus is linked to the policyholder, not the named drivers, so if your parents make a claim on their policy it could affect your No Claims Bonus.

The Bottom Line

Being a named driver on your parents’ insurance can be a good way to save money on your car insurance premiums, and it can also be a good way to build up your driving experience. However, there are some drawbacks to consider, such as being restricted to only driving when your parents are in the car, and the fact that you may not be covered for any damage you cause to the car. It’s important to weigh up the pros and cons before you make your decision.