Naming Young Drivers on their Parents' Insurance Policy
Insuring your first car may seem an impossibly expensive task, so it's understandable that many young drivers consider being a named driver on their parents' car insurance at first.
If you're planning to drive your parents' car, either regularly or just occasionally, make sure you've got the right cover to stay legal.
Here's some helpful information to explain this option and to clarify when a new driver should get a policy in their own name.
Can I drive my parents’ Car? What about insurance?
In the right circumstances it's perfectly ok to be insured as a named driver on your parents' policy; and you could save money in the short term, but there are several reasons why it's not always a good idea and in some cases you might even be breaking the law!
Can I drive my parents' car without insurance?
No, you'll need at least third party car insurance if you want to drive your parents' car. You must be properly insured if you drive on the public road, no matter how short the distance, even if your parents have given their permission for you to drive the car, and even if they have their own insurance policy covering the vehicle.
How to make sure you're properly insured to drive your parents' car
You have a couple of options. The first method is for your parents to add you as a named driver to their existing policy. The second is to take out a policy in your own name.
Let's look at those options in a little more detail.
1. Become a named driver on your parents' policy
Ask your parents to add you as a named driver on their existing policy. Adding a child to their policy is probably the cheaper, more convenient option in the short-term, but it does have disadvantages, too.
As a named driver you don't earn a no claims bonus in your own name, so if you're a careful driver you won't feel the financial benefits when you eventually take out a policy in your own name.
Some insurance companies will, however, give you an introductory bonus if you buy your policy from the same insurer your parents are using.
2. Get your own insurance policy
Buying car insurance in your own name is often more expensive than being a named driver on someone else's policy, but you'll be earning a no claims bonus right from the start, which saves you money in the long run.
Insurance policies should be in the name of the main driver or registered owner of a vehicle, though, so if you are just an occasional driver of your parents' car, this isn't the right option for you.
Whether you get your own policy or become a named driver on your parents’ very much depends on your circumstances.
When it's ok to be covered by your parents' insurance
Regardless of whether you still have a provisional driving licence or you've recently passed your test, your parents' insurance company might agree to add you to their policy if:
- You are only an occasional driver (i.e. your parents are the main drivers, but you have their permission to drive the car sometimes) and
- Your parents are the registered keeper of the vehicle (i.e. DVLA records show that your parents own the car)
The insurance company will charge an additional premium to add you as a named driver to your parents' policy (all insurers calculate premiums slightly differently, so we can't say exactly how much it will be). Your parents might ask you to pay this extra premium, but in the short-term, this is probably a cheaper option than taking out your own insurance policy.
Disadvantages of piggy-backing your parents' insurance
- You won't earn your own no claims bonus while you're a named driver on someone else's policy. While the first year's premium might seem high, after just one year with no claims, the discount you've earned will make your own policy much more affordable. And that discount just keeps getting bigger over the next few years. It seems like a no-brainer to bite the bullet and start earning that discount - you've got to do it one day, right?
- The car must belong to one of your parents and they must be the main driver for the insurance policy to legally be in their name. If you own the car and you are the main driver, you're breaking the law if the policy is not in your own name - this is called "fronting".
Car insurance and the law - illegal "fronting"
Parents have to tread a fine line if they're trying to help their children get cheaper insurance. If they take out a policy in their own name, naming the child as an additional driver, or they add their child to their existing policy, they are breaking the law if their son or daughter is actually the main driver of the vehicle. Premiums are calculated largely on the risk presented by the policyholder, so pretending that an experienced parent is a more regular driver of the car than their inexperienced child is fraudulent.
This practice is called “fronting” but many parents and young drivers are unaware that it's illegal.
Such situations often come to light when a claim is submitted, but far from settling the claim, the insurance policy might be cancelled. The young driver could also find themselves in court, charged with driving without valid insurance and facing a stiff penalty.
Do you get no claims bonus as a named driver?
Only the policyholder can earn the full rate of no claims bonus, so until a young driver has an insurance policy in their own name, they won't build up the usual no claims bonus. However, when you are ready to buy your own policy, some insurers will give an introductory discount if you've been a named driver on another policy, subject to proof of no claims.
Building up your no claims discount in a policy of your own is the fastest way to reduce your insurance premium.
When you should get a policy in your own name
As a rule of thumb, if you are the owner of a vehicle, or drive it more regularly than anybody else, in all likelihood you ought to be the policyholder too.
I have insurance on my own car - am I covered to drive my parents' car, too?
Some comprehensive insurance policies do provide basic cover to drive other vehicles, but it varies widely between companies, so check your policy wording carefully. If your policy does permit it, the cover is usually third party only, so if you have an accident, you could be footing the repair bill yourself! There may also be restrictions on age, occupation and the type of vehicle you can drive.
Cover for driving other vehicles is really only intended for emergency situations, so if you're likely to drive a parent’s car more frequently, you should become a named driver on their insurance.
What will happen if I drive my parents' car without insurance?
If you're caught driving without insurance the consequences can be severe.
The IN10 conviction code brings with it a minimum of 6 penalty points, a potentially unlimited fine and even, in serious cases, disqualification.
Your parents' car can be impounded by the police and even destroyed in some circumstances.
The conviction will stay on your licence for years and you'll have to disclose it to insurance companies when you apply for insurance. This can make it more expensive to buy insurance.
If your parents knowingly allow you to drive their car without insurance, not only could you find yourself charged with an offence which may lead to a conviction, your parents could also be in trouble.
Provisional drivers insurance
If you're still learning to drive, there's also the option of taking out learner driver insurance that lets you practice in your parents' car without risking their no claims bonus if you have a prang.
You don’t need a full driving license in order to take out insurance in your own name. You can take out your own insurance policy even on a provisional license, and it’s particularly recommended that you do so if the car you are learning to drive in is owned or driven solely by you.
It’s common for parents to add their son or daughter to their own insurance as a named driver while they are still learning to drive, but the same legal situation prevails here as mentioned before. If the child is actually the main driver of the vehicle, both parent and child could find themselves in legal hot water. The short-term gain of a lower insurance premium isn't worth the risk.
The cost of insurance for a young driver on a provisional license may not be too much different to that for a driver having just passed their driving test. With the same ability to start building up their no claims bonus immediately, it makes sense in the long run.
Related information
Insurance for Young and New Drivers