Young Drivers Motor Insurance No Claims Bonus
It is very important that young drivers build their No Claims Bonus. If you insure the car in a parents name, whilst there may be a accost advantage in Year 1, it may transpire that in years to come this becomes a false economy.
The No Claims Bonus is a bonus weighed against the main driver. If a parent insures a car with a young driver on the policy then the following can happen:
|
Year 1 |
Renewal |
2 Year Total |
| Parent Risk |
£300 NCB 40% |
£180 |
|
Young Driver Risk
As occasional driver |
£700 |
£700 |
|
| Premium |
£1000 |
£880 |
£1880 |
At renewal the premium does not drop by much because the younger driver is only considered as an occasional driver and therefore the insurer does not consider that they have built up valid experience as a named driver to qualify for a discount. This is the reason why additional drivers do not qualify for No Claims bonus. We could now consider insuring in the young drivers name:
|
Year 1 |
Renewal |
2 Year Total |
| Parent Risk |
£900 NCB 40% |
£540 |
|
Young Driver Risk
As occasional driver |
£200 |
£200 |
|
| Premium |
£1100 |
£740 |
£1840 |
As you can see, this second example shows not only that it can be more expensive to insure in a parents name but also that a young driver is not accruing their own discount.
It is highly recommended that the main user of any vehicle be the main insured name. It can work out financially better and you can avoid the risk of invalid policies.
The best course of action is to speak to specialists who deal with young driver motor insurance. We have a panel of selected insurers who offer discounts for younger drivers. Click here for motor insurance quotes.
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