Named Driver Tricks to Lower the Cost of Car Insurance
Below are the two types of named drivers that are commonly used to reduce insurance costs. Each is fully explained and should clarify why you should or shouldn't do it.
Insuring a Car in your Parents Name and having you as a Named Driver
This is a common trick used among new and inexperienced drivers to bring down their insurance quotes. A few years back this was very popular, however nowadays the insurance companies have cottoned on and sometimes it doesn't work out as planned.
In this case you insure your car in your parents name so that the insurance policy isn't in your name. You then get them you add you as a named driver. Although technically this is legal, if you are the main driver of the car you could be found out and have your insurance voided.
The reason insurance works out cheaper this way is the main risk is based on your parent who is a lower risk to insurance companies than you are. We do not recommend this technique as you could end up having you insurance cancelled, the other downfall is that you don't accumulate any no claims bonus as it is in your parents name
Insuring you Car in your name and adding your Mum as a Named Driver
This trick doesn't work with all insurance companies, although it has been found to work with Norwich Union, Elephant, Admiral and Endsleigh (there are probably more).
There is nothing illegal about this insurance cutting trick, and it can save some people hundreds of pounds.
When carrying out a quotation get a price for you as the only driver and remember it. Then do the quote again but this time add an extra driver. It works out cheapest to add an older female such as your Mum, an Aunt or even your Nan. If this isn't possible you can always try adding you dad or a older female work colleague.
This way you can see if it works out cheaper to add an extra driver - give it a go using Elephant or Admiral if you don't believe us. Sometimes it works out cheaper to add a combination of an older male and an older female.
We highly recommend this insurance tip as it 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.