• Young drivers struggling to get on the road could save over £730 by becoming an additional driver instead of taking out their own policy
  • Average individual policy for a 17 – 24 year old now stands at over £1,275
  • Additional driver policies are only for those who use a car infrequently and policyholders need to be aware of the implication of  ‘fronting’

26 July 2016 – Younger drivers could be missing out on over £730 a year in savings by being insured on their own car rather than their parent’s car, according to research by comparethemarket.com. Analysis indicates that occasional drivers aged 17 – 24 would pay an average of £539 as an additional driver on the car insurance policy of a driver aged above 30, compared to the average motor insurance policy for a 17 – 24 year old, which stands at £1,275.

However, there are a number of pitfalls for the younger generation looking to get behind the wheel as an additional driver. Most named driver policies do not offer the second driver a no claims discount for when they want a policy of their own. Furthermore, being an additional driver should only be considered by those who will only use the car occasionally and are not regular motorists or commuters. If the young driver ends up using the car more than the policyholder, it could be considered ‘fronting’, which is insurance fraud.

 With motor insurance premiums continuing to rise for younger drivers looking to get on the road, becoming an additional driver could be a more affordable option. The average insurance policy for a driver aged 17 -24 currently stands at £1,275, while the average policy for an over 30 year old is £441. If the more experienced, 30+ aged driver was to add a 17 – 24 year old to their policy, the average insurance premium would be just over £980. This equates to a saving of £736 for the younger driver compared to having a policy in their own name.

Comparethemarket.com’s most recent Premium Drivers index found that motor insurance premiums have risen by more than 12.5% in the year to May for drivers aged 17 – 24. The steady rise in motor insurance costs has led to some premiums going above £1,275.

Dan Bass, Head of Motor at comparethemarket.com said:

“For those occasional drivers who want to get on the road but struggle with the huge premiums associated with being a young driver in the UK, becoming an additional named driver on a more experienced drivers policy is a very cost-effective option. Average annual motor insurance premiums have reached unprecedented levels – over £1,275 for 17 – 24 year olds in May – which is unaffordable for a large portion of that age-group.

“However, the £736 saving does come at a cost and should be carefully considered before being exercised. Most policies do not give the additional driver a no claims discount, which could turn a number of drivers away from taking a policy of that type. Most importantly, regular motorists or young people who drive to work will need to take out a policy of their own. The ‘fronting’ rules mean that any additional driver using the car more than the policyholder could render the entire agreement invalid as well as breaking the law and there is a danger any claims would not be paid. Additional drivers need to exercise caution when considering this as an option to get on the road.”