Named Driver Tips for Cheaper Car Insurance
Below are two ways named drivers can be used to reduce insurance costs. One is a potentially great way of saving money, whilst the other is illegal.
Insuring A Car In A Parents Name With The Child As A Named Driver (Fronting)
Fronting is usually only used by young drivers who are hoping bring down their insurance costs. Fronting is when a parent insures their child's car in their own name and adds the child as a named driver - this is illegal if the child is the main driver.
Insurance works out cheaper this way as the main risk is based on the parent who is a lower risk to the insurance company than the young driver. If your insurer finds out, your insurance policy could be voided, it is also illegal and as a named driver you are unlikely to accumulate any no claims bonus.
Insuring A Car In Your Name And Adding An Older Named Driver
A number of insurance companies will reduce your car insurance premium if you have an older driver (this works best with older ladies) named on your policy. There is nothing illegal about this, and in some cases it can reduce the premium substantially.
To find out whether this is worth doing with your insurer, complete a quotation and make a note of the price. Do the same quote a second time but this time add the named driver. It often works best when adding an older female family member or work colleague who may drive your car. Sometimes it can work out cheaper to add an older male and an older female.
This car insurance tip can legally save you money on your car insurance without any risk of having the policy voided. It also allows you to build no claims bonus as the policy is in your name.
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