When someone takes out car insurance in their own name, they can add other drivers to their policy to drive their car. These people who are added to a policy are called named drivers

Adding a named driver to car insurance policy can be very practical. For example, it allows a couple to share the car if they have different work routines without having to bear the cost of an extra car, thus saving money. It can also allow young drivers who may not be able to afford the initial costs involved in getting their own car. By driving as a named driver on a parent’s car, a young person may be able to get enough experience to pass their driving test which itself will reduce premiums when they decide to buy a car and get insurance in their own name.

However, premiums can either go down or increase when you add a named driver to your policy. Factors such as the age of the named driver, the relationship the named driver has to the main driver (spouse, a child, a relative etc.), driving experience and claims history have an effect on the overall price for car insurance. In many cases, insurance companies offer nice discounts to main drivers who add their partner/spouse as a named driver.

On the other hand, adding a younger, more inexperienced driver will most likely increase the cost of cover. Despite this, it would still be cheaper to add a young driver to the policy than for the young driver to go out and buy their own car and insurance. Named drivers can also earn a letter of Named Driving Experience if they keep claims free whilst they are on another person’s policy. This is of particular benefit for young drivers as they can get discounts off their first insurance under their own name without the need for a No Claims Bonus.