A simples guide

Is transferring car insurance within the family possible?

It’s great being part of a family, not least because you get to share stuff that you otherwise might not have had – like a tablet or that expensive coffee machine or that nicer looking meal in a restaurant. But there’s one thing that’s not quite as clear cut when it comes to sharing, and that’s car insurance – so just what can and can’t you share?

Can I transfer car insurance to a family member?

If you want to make any changes to your car insurance policy, you’ll need to ask your provider. If you’re the policy holder and the main driver, your premium will be based on how risky you’re considered as a driver. So that means taking into account things like your age, your insurance history, where you keep your car and how many miles you drive it. You may have additional named drivers on your policy but they’ll only be occasional drivers and so the bulk of the risk falls on you.

If you decide to change that and let someone else have a go at being the main driver, then you’re changing the riskiness of the game and your insurer needs to know that (otherwise you’re not playing fair). So whilst you can’t simply give another family member your insurance policy and say ‘here you go’, you can amend your policy so long as your provider is willing to do so.

You’ll need to expect that your premium may go up or down based on what changes you’re making to your policy. If you’re changing the main driver and they’ve got less experience than you and not built up a decent no claims discount, then your premium will reflect that.

Keys, calculator and notepad
Car and sunset

Does the policy holder and the main driver have to be the same?

Whoever the policy holder is tends to be the main driver, but there’s nothing to say that they have to be – it’s just one of those things that seems to work out that way. Some insurance providers require the registered keeper to be married to or in a civil partnership with the policy holder. If you do want to change the policy holder on your car insurance, it’s most likely that you’ll need to take out a brand new policy – always speak to your provider before making any assumptions.

Can I transfer my no claims discount?

In theory you can transfer your no claims discount (NCD) but it’s at the discretion of your car insurer and you’ll only be able to transfer it to your spouse or partner. Some insurers will define ‘partner’ as anyone you’re in a relationship with and living at the same address at – it doesn’t just have to be your husband/wife or civil partner. However, in most cases, your insurer will want to see that whoever you’re transferring your NCD to, has been driving long enough to accrue the level of no claims that you’ve built up.

What about car tax, can I transfer that?

Sadly, no. You can’t transfer car tax to anyone, not even your spouse or partner. If you give your car to a family member (how generous of you) you’ll need to cancel your existing car tax and wait for a refund from the DVLA. Whoever you’re giving the car to, will need to amend the log book (or V5C to give it its technical name) to show that they are the new registered keeper.

A point to note is that the registered keeper of a car, doesn’t have to be the owner of the car. The registered keeper is the person who drives the car and keeps it, the owner is defined as the person who bought it.

How do I find the right car insurance for me?

The best way to find the right car insurance is to be honest and accurate about how you use your car. Consider things like what you use your car for – whether it’s business or social, how many miles you drive a year and where you keep it. Think about whether you’re likely to drive abroad and if you’ll then need European cover. Once you’ve got that sorted, start comparing the market and remember, cheapest isn’t always best – you’re unique and your policy should reflect that. So start a quote with us today, tell us a bit about you and what type of policy you think you’ll need and we’ll do all the leg work for you – just see how much you could save!

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