A named driver is someone who is insured to drive a vehicle on a policy that has a main driver. The main driver is the person who owns the vehicle drives it most of the time but the named driver is someone who still uses the vehicle but less frequently.
How a named driver affects your insurance premium is dependent on who the named driver is and their existing driving record. Adding an older, experienced driver to a policy is more likely to reduce insurance premiums than adding a younger, more inexperienced driver who have recently passed their test.
Adding a young driver as a named driver to a policy is commonly done to reduce the cost of insuring them on a vehicle. Alternatively, you can add a more experienced driver as a named driver to the policy of a young person and this can help reduce annual insurance premiums also.
Adding a named driver is only acceptable though if they are not the main user of the vehicle and the main driver still use the vehicle more. If the young driver wants to use the vehicle more often they should be added as the main driver to the policy.
Declaring someone to be the main driver of the vehicle who actually isn't in order to get cheaper car insurance is illegal. It is referred to as 'fronting' a policy and can lead to your insurance being void, potential prosecution, and in the event that you need to make a claim you may have to cover the costs yourself. The main driver named on the policy must be the person who drives the vehicle most often. For younger drivers, there are other ways to get cheaper car insurance, like taking out a black-box policy, than naming a parent or guardian as the main driver on a policy
No Claims Discount: How does this affect the main driver?
Adding a named driver to your policy will not affect the no claims discount (NCD) for the main driver. However, your NCD may still be affected if the named driver is involved in a road collision and you need to make a claim on the policy. It is also unlikely that the no claims discount of the named driver being added to the policy will discount the insurance premiums.
No Claims Discount: How does this affect the named driver?
It is unlikely that as a named driver on your policy will be able to build their own no claims discount. This will vary depending on your insurance company so check the policy terms and conditions for clarity on if you can build a NCD discount as a named driver. Learn more about no claims discounts.
Adding a named driver to an existing insurance policy can be done at any time. It will incur admin fees charged by your insurer and your insurance premium will be affected. If you add a younger, inexperienced driver to a policy your premium will increase for which you'll be required to pay the difference. If you add a more experienced driver then your premium may be reduced and you'll receive credit from your insurer. The insurer will require basic details on the driver being added to the policy: full name, address, date of birth, contact information, occupation etc. They'll also require information on any prior driving offences and criminal convictions which will affect your insurance premiums.
All drivers on a policy will be covered under the same insurance. If the policy provides full comprehensive cover then all drivers will be covered for comprehensive claims. If the policy has added extras like breakdown cover, a courtesy car or personal accident cover, all drivers will be covered to the same extent. Third party, third part fire and theft, and comprehensive cover is available for insurance policies that list named drivers.