Adding a young driver to your car insurance: What you need to know

What does it mean to be a named driver on car insurance?

A named driver is someone who's added to a car insurance policy but isn't the main policyholder.

They're insured to drive the car listed on the policy, but only under the terms set by the insurer. In most cases, that means they can use the car occasionally, but they shouldn't be the main driver.

Here's how the roles differ:

• Main policyholder: This is the person who owns the policy and pays for it.

• Main driver: This is the person who drives the car most often.

• Named driver: An additional driver who uses the car less frequently.

A named driver must not be the main user of the car. If your child drives it most days, they should be the main driver or have their own policy.

What is car insurance fronting and why is it illegal?

Fronting is when a parent takes out car insurance in their own name and lists their child as a named driver, even though the child is actually the main driver.

It's illegal because it misrepresents who is really driving the car, which insurers class as insurance fraud.

If fronting is discovered, the consequences can be serious. Your insurer may cancel your policy, refuse to pay out on a claim, and record the incident on the Insurance Fraud Register (IFR).

Being listed on the IFR can have long-term effects. It can make it harder and more expensive to get car insurance in the future and may also affect applications for loans or mortgages.

If you're unsure whether your setup could count as fronting, it's best to contact your insurer and explain how the car is actually used so you can arrange cover correctly.

Adding your child to your car insurance policy: Pros and cons

Adding your child to your car insurance usually means contacting your insurer and listing them as a named driver on your existing policy. You'll be asked for details such as their age, licence type and how often they'll use the car, and your premium may change as a result.

Should your child have their own car insurance policy?

In some situations, it makes more sense for your child to take out their own car insurance policy, with you added as a named driver. This is usually more appropriate if your child is the main user of the car, drives it most days, or uses it for commuting to work or college.

Having their own policy also allows your child to build their own no-claims bonus (NCB), which can help bring their premiums down over time - this is something they may not be able to do as a named driver.

This option is often more expensive than adding your child to your policy, especially at first. However, it's the safest way to insure the car if your child drives it most often, and avoids the risk of fronting or invalidating your cover.

How to get cheaper car insurance for young drivers

Car insurance for young drivers is expensive, but there are ways to bring the cost down:

• Consider telematics (black box) insurance: A telematics policy monitors how and when someone drives. Safer driving can lead to lower premiums, making this a popular option for young and new drivers.

• Choose the right car: Cars in lower insurance groups, with smaller engines and lower repair costs, are usually much cheaper to insure than powerful or modified cars.

• Look at multi-car policies: Some insurers offer discounts when more than one car is insured at the same address, which can help reduce the overall costs for families with multiple vehicles.

• Take a Pass Plus or advanced driving course: These courses show insurers that your child has extra training and experience, which can sometimes lead to lower premiums.

• Increase the voluntary excess: A higher voluntary excess can reduce the premium, but it's important to make sure it's affordable if a claim needs to be made.

• Keep mileage realistic: Driving fewer miles each year usually means lower risk, which can help reduce insurance costs.

• Park securely: Off-road parking or keeping the car in a garage overnight can lower the risk of theft or damage and may reduce premiums compared to parking on the pavement.

Comparing quotes regularly can also help ensure you're not paying more than you need to.

Understanding different driver and policy scenarios

Car insurance rules can feel confusing, especially when you're dealing with named drivers or shared cars. Here's how some of the most common scenarios usually work.

Can a named driver driver other cars?

In most cases, no. Named drivers are usually only insured to drive the car listed on the policy. Some policies include 'driving other cars' cover, but this isn't usually the case for young or new drivers, and shouldn't be relied on without checking the policy wording.

Can I add other cars to my insurance?

Some insurers offer multi-car policies, which let you insure more than one car under the same account. Each car is still insured separately, but discounts may apply when all vehicles are kept at the same address.

Can I add someone who doesn't live at the same address?

Often yes, but you must give the insurer accurate details about where the driver lives and how the car will be used. Incorrect information could invalidate your policy.

Does a named driver need their own insurance?

A named driver doesn't need a separate policy to drive the car they're named on. However, if they regularly drive another vehicle, they'll usually need their own insurance for that car.

What insurance options are available for learner drivers?

Learner drivers need insurance whenever they're being the wheel, even if they're practising with a parent or instructor.

Adding a learner to a parent's policy

One option is to add your child to your existing car insurance as a named driver while they learn.

Pros:

• Often cheaper than taking out a separate policy

• Simple to arrange through your current insurer

• Uses a car your child is already familiar with

Cons:

• Any claims could affect your no-claims bonus

• May increase your premium

• Less flexibility if your child practises infrequently

Taking out learner driver insurance

Learner driver insurance is a standalone policy designed specifically for provisional licence holders. It can be short-term or annual.

Pros:

• Protects your own NCB

• Flexible cover, ideal for occasional practice

• Ends automatically when your child passes their test (for some policies)

Cons:

• Can cost more than being added as a named driver

• Requires setting up a separate policy

What if my child's car insurance has been cancelled?

If your child's car insurance has been cancelled by an insurer, it's important to take it seriously. A cancelled policy isn't the same as letting cover end naturally with the policy term.

A cancellation must be declared on future insurance applications, and it can make finding cover more difficult or expensive. Some insurers may refuse to quote altogether, while others may offer higher premiums or stricter terms.

If a policy has been cancelled, contact the insurer to understand why it happened and whether anything can be done to resolve the issue. When applying for new cover, always answer questions honestly - giving incorrect information can lead to another cancellation.

Over time, the impact of a cancellation may reduce, but it's likely to affect insurance costs in the short term.