Additional Drivers Car Insurance
Placing additional drivers on your car insurance policy can have a resounding effect on your overall premium. Although the conventional wisdom states that adding drivers will result in a more expensive insurance plan, in some cases naming an additional person can significantly attenuate costs, especially if the person is considered to be less of a risk. The following guide will examine the various effects of additional drivers and assist you in determining whether such a policy is suitable for you.
Parents and Children
Naturally, insurance companies and their actuaries consider young drivers to be at the highest risk for an accident. This valuation is not based on perception, but statistical data of road accidents and traffic offences. In fact, less experienced drivers are three times more likely to make an insurance claim than other drivers. This is particularly true of young males under the age of 25.
As a result, any parent that is contemplating adding a young son or daughter to their car insurance policy will likely see a dramatic increase in their premium. Nevertheless, the cost is considerably cheaper than if the child sought out car insurance exclusive of their parent.
Consequently, young drivers who are considering adding their parents to their existing insurance policy will see their premiums decrease precipitously. As only one person can drive the car at any given time, the mere chance that an older, experienced driver will be manoeuvring the vehicle means the risk to the insurer will be lower.
Adding a Friend
A common perception is that a family member, relative, or spouse is the only person eligible to be an additional driver. However, generally speaking almost anyone can be added to your car insurance policy so long as the have a valid licence. The exceptions being car insurance companies that institute arbitrary age limits and other additional driver restrictions.
If you subscribe to a comprehensive coverage policy, you should be covered regardless of who drives your car, provided they have your permission. Therefore opting for an additional driver on a comprehensive policy is typically redundant. This insurance is, however, limited to third party cover and does not apply if your coverage is for yourself and not your vehicle.
Important Points to Consider
- The total cost of adding another driver is directly tied to their statistical level of risk. In other words, a young driver, regardless of how safe he or she drives, will result in an increase to your premium, whereas an older driver with a strong driving record will likely reduce it.
- For those individuals who have comprehensive insurance, adding an additional person may be superfluous given they already receive third party cover.
- Installing restrictions on an additional driver can lower the cost of your premium. For example, if you limit the additional driver coverage to school holidays, it will mitigate the overall risk to the insurer.
- Adding your parents to your policy can significantly reduce your insurance premium.
- Take advantage of a No Claims Discount. This is especially helpful for parents of young drivers, as some insurance companies allow additional drivers to build up their own no claims discount which they can carry over when they sign up for their own insurance.
