You may come across a named driver policy when purchasing insurance. This type of insurance is a little different from the standard motor insurance policy. In this blog, we’ll explore what named driver insurance is, how it works, and what the rules are for this type of policy.
Named Driver Meaning
This is a type of insurance that only covers the drivers who are specifically named on the policy. Unlike standard policies, named driver insurance does not cover anyone else who may be driving the vehicle; meaning a driver who isn’t named on the policy won’t be covered, even if they’re driving the vehicle with the owner’s permission.
These types of policies can offer lower premiums than standard insurance, particularly if the driver is named and has a lot of driving experience. It’s important to understand the rules and limitations of named driver insurance before purchasing a policy to ensure that it is the right fit for your needs.
Named Driver Insurance Rules
Before you decide to purchase named driver insurance, it’s important to understand the rules that come with this type of policy. Here are a few important things to keep in mind:
1. Only named drivers are covered
As mentioned earlier, only drivers named are covered by a named driver policy. If someone who is not named on the policy gets into an accident while driving your car, your policy will not cover the damages.
2. Coverage is limited
These types of policies typically offer limited coverage compared to standard insurance policies. This is because the policy is tailored to the specific drivers named on the policy. The amount of coverage you can get will depend on the insurance provider and the policy you choose.
3. Premiums may be lower
One of the benefits of named driver insurance is that the premiums may be lower than standard insurance policies. This is usually the case if the main insurer is a young driver and wants to add a parent, who has a lot of driving experience. This type of case may lower the risk to the insurance company.
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4. Not suitable for all drivers
Named driver insurance may not be suitable for all drivers. A standard policy with Open Drive Insurance extra may be a better option if you frequently lend your vehicle to others or have multiple drivers in your household.
Benefits of Named Driver Insurance
While it may not be suitable for everyone, there are some benefits to this type of policy. Here are a few reasons why you might consider named driver insurance:
1. Lower premiums
As mentioned earlier, named driver insurance premiums may be lower than standard insurance policies. This can be a great way to save money on your insurance.
2. Customisable coverage
Named driver insurance policies are tailored to the specific drivers named on the policy. This means you can choose the coverage amounts and types that are best suited to your driving needs.
3. Less risky
Because these types of insurance policies only cover a limited number of drivers, they’re less risky for insurance companies. This means that they may be more likely to approve your policy and offer lower premiums.
4. Good for occasional drivers
If you only use your car occasionally and are the only driver, this may be a good option. This way, you won’t have to pay for coverage you don’t need.
5. Greater flexibility
Another benefit of this type of insurance is that it may provide greater flexibility in terms of choosing the coverage that is best suited to your driving needs. Because the policy is tailored to the specific drivers named on the policy, you can choose the coverage that you feel is necessary, rather than paying for coverage that you don’t need. This can help you save money on your insurance premiums while still ensuring that you have the coverage you need in case of an accident.
6. Builds individual driving history:
Named driver insurance allows individual drivers to build their own no-claims bonus and driving history. This can be beneficial for future insurance applications and premiums.
7. May offer better terms for young or inexperienced drivers:
Being added as a named driver under a more experienced driver’s insurance policy can sometimes result in more favourable insurance terms. Especially when compared to taking out a policy in their own name. It’s a good idea for young or inexperienced drivers!
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Named driver insurance is a good option for individuals who are the only drivers of their automobile and want to save money on their policy. Before deciding to purchase this type of insurance, it’s important to understand the rules and limitations of this type of policy. Remember that named driver insurance may not be suitable for everyone. So, be sure to shop around and compare policies to find the one that’s right for you.
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