Just as every family is different, so too are the car insurance needs of each family unit. Below are some of the options you can consider to create your own family car insurance policy:
If you search for family car insurance, the most common option you’ll find is multi-car insurance.
This type of policy allows you to insure multiple cars at once, and you’ll usually receive a discount for each additional car that you add to the policy.
For most policies, all cars must be registered at the same address. However, you can find policies that’ll cover cars driven by family members who live elsewhere, such as a child at university.
The main policyholder, i.e. the person who takes out the insurance, can add different policyholders for each car, reflecting the one who drives the vehicle the most. You can then also add named drivers to any of the cars.
There are two main forms of multi-car insurance:
- One policy for multiple cars: you can choose to insure all your family’s eligible vehicles under a single policy with the same level of cover and renewal date. Typically, every named main driver will also still maintain their own no-claims bonus
- Linked policies for different cars: instead of having one policy that covers every car, you can link multiple individual car insurance policies together. This allows you to pick varying levels of cover, add-ons and excesses for each car. Each driver can build their own no-claims bonus, and the renewal dates are normally different
Some providers may offer multi-car insurance that blends the features of those two options, such as a policy with a single renewal date but different levels of cover for each car.
You may want to consider multi-car insurance if your family has more than one vehicle and you want to benefit from the policy’s discounts while minimising paperwork.
Multiple named drivers
If your family only has one car but you want more than one person to drive it, then you can add multiple named drivers to your vehicle. A named driver has the same level of cover as the main policyholder.
However, a named driver cannot be the person who drives the car the most. This is a form of insurance fraud called “fronting”.
A named driver doesn’t have to be a spouse or immediate family member. They don’t even need to live at the same address as you, meaning a child living elsewhere can still be added.
You can even be added as a named driver to one car while being the main driver on another vehicle without affecting your other policy. This can be useful if you and your partner have your own cars but want to be able to use each other’s vehicles.
If a named driver has an accident, it will be the main driver’s policy that’s claimed against and their no-claims bonus that’s affected. So you need to be 100 per cent sure you want to add a named driver before doing so.
Some providers will specify a maximum number of named drivers, usually between three and four. And there may be age requirements for who can be added.
Your premium will be affected if you add a named driver. In which direction, however, depends on who you add. If you’re an experienced driver adding a younger, less experienced named driver, then your premium may rise. But if you’re a newer driver adding someone with more experience, your premium may fall.
Temporary car insurance
Sometimes a member of your family may need to borrow your car for such a short time that it doesn’t justify adding them as a named driver. In that instance, you can consider temporary car insurance.
With temporary car insurance, a driver can be covered for as little as one hour but usually up to 30 days. It’s perfect if a family member needs to borrow your car to move house or go on a weekend away.
And, best of all, your no-claims discount won’t be affected if the driver has an accident while driving with temporary cover.
Learner driver insurance
If a member of your family is learning to drive, they can take out specific learner driver insurance.
This will allow them to take your car out for practice drives as long as they are supervised by a driver over the age of 25 who has held a full UK driving licence for at least three years.
Most importantly, if they were to get into an accident while learning to drive, your no-claims bonus as the main driver of the car wouldn’t be affected.