In all, an automobile insurance policy will have the names drivers as those that are going to be authorized to drive the car. Many policies only contain one named driver, however, if you have a household with other adults that can drive, you might want to consider placing them on as well.
For a larger family, a named driver is a good thing. This means that each person does not have to have their own separate policy for the same car. In larger families, not everyone typically has their own vehicle. This allows for flexibility and saved money in that case.
The biggest drawback that multiple named drivers on a policy have is the extra cost. After the first driver, the premium goes up. This is due to the fact that the more drivers you have; the more chance there will be to have an accident. This is especially true for many new drivers on one policy. The fact that they are new drivers alone increases the risk for the insurance company. Throw in age factor and you could have a heavy car insurance premium.
Being that named drivers is a constant occurrence, you can eliminate costs by choosing a company that allows you to add temporary named drivers. Sometimes this is helpful for family vacations or someone needing to use your car for a set amount of time. This covers appropriately as well as not being a consistent cost. It would be a onetime fee.
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.
Another option is just the opposite. The parents can be on the new driver?s policy. Any way you have it, it still saves money because there are responsible and proven good drivers on the record. This, in turn, eliminates some risk for the insurance company from their perspective.
In all, it is very important that you take the time to shop around for insurance and carefully consider who you are going to be listing as a named driver. This is one area that deserves great attention because the consequences of not insuring properly can be disastrous.
For a larger family, a named driver is a good thing. This means that each person does not have to have their own separate policy for the same car. In larger families, not everyone typically has their own vehicle. This allows for flexibility and saved money in that case.
The biggest drawback that multiple named drivers on a policy have is the extra cost. After the first driver, the premium goes up. This is due to the fact that the more drivers you have; the more chance there will be to have an accident. This is especially true for many new drivers on one policy. The fact that they are new drivers alone increases the risk for the insurance company. Throw in age factor and you could have a heavy car insurance premium.
Being that named drivers is a constant occurrence, you can eliminate costs by choosing a company that allows you to add temporary named drivers. Sometimes this is helpful for family vacations or someone needing to use your car for a set amount of time. This covers appropriately as well as not being a consistent cost. It would be a onetime fee.
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.
Another option is just the opposite. The parents can be on the new driver?s policy. Any way you have it, it still saves money because there are responsible and proven good drivers on the record. This, in turn, eliminates some risk for the insurance company from their perspective.
In all, it is very important that you take the time to shop around for insurance and carefully consider who you are going to be listing as a named driver. This is one area that deserves great attention because the consequences of not insuring properly can be disastrous.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal, which helps people save on their Car Insurance.
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