Everyday people are signing on car insurance policies. There is typically a substantial amount of paperwork involved and many items to read. One of the most important aspects about an automobile policy is the named driver. Essentially, a named driver is the main driver, along with any other drivers that are specifically named on the auto insurance policy. Many people run into this situation when they have more than one person in their household that can drive.
Just as anything, named drivers on the policy have their good points and they have the bad points. Having named drivers ensures that your car will only be driven by the listed individuals; if not, they do not have your consent to drive. Having multiple drivers on a policy also allows for a flexible situation. It works very well for families.
The major downside of named drivers on an insurance policy is the extra cost that is brought about when placing them on. The insurance company sees them as a greater liability for a few reasons. The main reason is that you have just increased your chances of an accident with multiple drivers. Also, they are not as experienced or familiar with your car usually. Other factors that might raise this amount are the age of the driver and the experience of the driver. New drivers have very high rates.
If there is a point in time where someone will be driving your car for a lengthened period of time, you may want to consider adding them on as a temporary named driver. It is known that some insurance policies do not have this feature, so make sure yours does before you decide to sign on the line. This usually comes in great handy for family trips, someone?s car breaking down and seasonal visitors.
Always remember you are responsible for your own vehicle. This means, if you allow someone one drive you car while not on the policy as a named driver, you are putting yourself at great risk. If an accident came about, you would ultimately be responsible and have to pay damages, get sued and more.
There are other ways to save on car insurance cost in a legal way. You can do one of two things when you have a young driver on a policy. First, instead of the new, young driver getting their own policy, they can go on their parent?s policy. Now, although this has worked well in the past, many insurance companies are very aware of this practice and are trying to head it off. Some insurance companies will actually void your insurance; be sure to check with your local agent.
Alternatively, you could have the parents be listed as named drivers on the newer driver?s policy. Although it is not as commonly used, it is still legal and being practiced.
As you can see, a named driver is essential to the whole automobile insurance process and can sometimes add up depending on the situation at hand. Always check your options and shop around.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.
