Experts Reveal That Adding a Named Driver to Your Annual Policy Could Put Your No Claims Discount at Risk
A no claims discount reduces the price of your car insurance if you don’t make a claim. This accumulates every year you don’t make a claim, and if you don’t make a claim for five years you could even earn as much as 60% off on insurance costs. As soon as you make a claim, if you were at fault, you could use some of the discount, if not all of it.
To get a better sense of people’s knowledge about the risks of adding a named driver to
one’s car policy, we decided to look at people’s individual experience with this.
Of the people we asked, most were aware of the fact that adding someone as a named driver can put your no claims discount at risk. However, nobody knew that adding a named driver can also result in the increase of future premiums for the policyholder, even after the named driver has been removed from the policy.
Emily, from Loughborough, shared her experience with us:
“My partner, who was a named driver on my policy, crashed and wrote off my car in a faulty accident. Unfortunately, this meant I lost over half of my no-claims discount as it was reduced from 5 years to 2 years. And before this happened I hadn’t realised my no-claims could be affected so much.”
“It will allow you to share the driving between you and others, and also will enable you to borrow and legally drive cars during short periods if you do not have one yourself, giving you monthly, daily or even hourly cover”, Andy Moody adds.
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