Named Driver Car Insurance
In the car insurance world, there are many different ways to cut down on your costs. Many people take these things to heart and they recognize that some moves can bring down their car insurance quotes significantly. It is important to understand which things are legitimate and which things are not. Some moves might seem like a good idea, but they are more likely to get you in trouble than anything else. Named driver car insurance is one of those things that you need to understand before you take out a policy. Here is some information on how it works and how you can use it to bring down your insurance costs.
What is named driver car insurance?
The term refers to the practice of putting more than one person on a car insurance policy. Know that when you are comparing the insurance market, you will see lots of companies that will allow this practice. The idea, of course, is to put a named driver on the insurance policy in hopes of bringing down the costs. You have to be careful, though, as certain methods of doing this will cost you over the long run. Certain methods will get you in trouble for “fronting” and could lead to the cancellation of your insurance. Recognizing the good and the bad is a must when making insurance decisions.
What is fronting?
When trying to understand named driver car insurance, you will need to be careful that you aren’t engaging in fronting. This is a process by which you save money, but it is actually a form of fraud. When fronting, people put an older, experienced driver as the primary driver of a vehicle. They do this with full knowledge that some other, high-risk driver is actually going to be the primary operator. You can see how this would present a problem for the insurance company. They set their price to account for the risk of an older, solid driver. Instead, they are actually insuring a driver who is much more likely to get into a car accident.
The problem with fronting is that it raises red flags among car insurance providers. When they give you cheap car insurance quotes, they aren’t expecting you to take advantage of them with this practice. If they discover that someone else has actually been the primary driver of a vehicle, the insurance company can cancel your insurance. Most policies dictate that they can refuse your claim. This means that you would be completely out of luck in case of an accident. The other downside is that fronting is illegal, so it could cost you more than just money.
The proper way to use named driver insurance
The better policy is to put the right person as the primary driver on the car, but add a named driver to bring down the insurance. If you have an older, established driver who is willing to go on the policy with you, then this can bring down your rates with certain insurance companies. The market is a complicated one, though, so not all companies are going to provide this kind of discount. This is when it becomes so important to compare the market using a car insurance supermarket site. When you compare car insurance for this nature, you will see so many different companies. Stay vigilant and you’ll come away with the best result.
Using named driver insurance to save money makes a lot of sense, but be smart about how you do it. You don’t want to get hung out to dry because you misused your policy in this way.