Insurance Policy-Named Driver
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.
Just as anything, named drivers on the policy have their good points and they have the bad points. Having named drivers ensures that your car will only be driven by the listed individuals; if not, they do not have your consent to drive. Having multiple drivers on a policy also allows for a flexible situation. It works very well for families.
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.
A way you might be able to skirt this cost is by finding an insurance provider that allows you to put temporary drivers on the policy for a small cost. This will let you allow other people to drive your care at certain points and still be covered. This type of situation can be for vacation road trips and the like.
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.
Taking steps to legally minimize costs associated with adding drivers on instead of letting them illegally drive your car is seem through joint policies. In other words, if a newer or younger driver is looking to get car insurance, they can opt to go onto their parent?s insurance policy. This is a common way parents lower premiums. It is also becoming largely recognized by insurance companies as well.
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.
As you can see, a named driver is essential to the whole automobile insurance process and can sometimes add up depending on the situation at hand. Always check your options and shop around.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car and vechile portal, which provides cover for all car and vechile types.
categories: Finance,Insurance,Cars,Automotive,Car Insurance
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