Motorists who are named drivers on another person’s insurance policy receive a letter of Named Driving Experience at renewal time
Similar to a driver earning a No Claims Bonus on their own policy, named drivers can also earn what is called a letter of Named Driving Experience (NDE). The letter outlines key information about the driving history of a named driver such as the amount of years they have stayed claims-free or if they ever been involved in an accident or made a claim. This letter is issued to the main driver’s address several weeks before the policy’s renewal date.
If you want to claim for all your NDE, you will have to produce a letter from each insurance company you have ever been with as a named driver. So, if you have been with, say, two insurance companies for two years, you will have to submit letters that were received from those two insurers.
In order for your earned NDE to be valid, all letters must:
1. Be up-to-date
2. Not show any gaps in driving experience
3. Be submitted within 14 days of the policy being incepted
The NDE can be used to either reduce the overall cost of being insured as a named driver for another policyholder. It should be noted that, unlike a No Claims Bonus, NDE cannot be protected. Therefore, if you have a claim as a named driver, you’ll lose all of your NDE discounts.
Alternatively, it can be used to get a discount should a named driver decide to buy their own car. In the latter case, NDE can be converted into a No Claims Bonus which only policyholders can accumulate. Doing this can save a lot of money especially if the named driver is buying a car for the first time as the premium would be a lot more if the driver had no proof of experience at all.