| Insurance Policy-Named Driver |
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| Written by Graham McKenzie |
| Saturday, 30 January 2010 15:10 |
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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.
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. 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. A drawback, and possible the largest drawback, is the fact that the insurance premium does go up for every driver that you add to the insurance policy. The insurance company does this because as a driver is added, their risk goes up a lot. In other words, you might be a great driver, however, your brother might not be. If your brother is living in the home and is of driving age, there is a good chance that he might have to drive your car at one point or another. His bad record could also affect your premium even more at that point. This also increases if the named drivers are younger or new drivers. 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. Keep in mind, only named drivers on a policy will be covered under the insurance policy. If you allow someone to drive your car, for whatever reason, you are responsible for them if they were to get into an accident or harm your car in any way. In this, it is best to not allow anyone that is not on the policy drive your vehicle. 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. 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. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal. |