Why Is It So Expensive To Have Any Driver On Your Insurance Policy?Wed, 16/07/2014
Most motorists will have a fairly good indication of who is likely to drive their vehicle throughout the period of insurance and, in most circumstances, these individuals will be added onto the policy at inception. It is common to find that named drivers are the spouse/partner of the main policyholder and possibly siblings, offspring or parents.
Some people may wish to have ‘Any driver’ able to drive their vehicle and, as can be seen below, this can be much more expensive mainly due to the fact that the insurance company do not know who could be driving their vehicle at any time.
The main reason that someone might require an ‘Any driver’ policy would be for commercial use, perhaps a local business who has a high turnover of staff and few vehicles, or a fast food delivery company who own a delivery vehicle and want cover so any of the employees can drive if needed.
Any driver policies are also commonly found on driving school cars. Instead of the driving instructor ringing their insurance company every time they take on a new pupil, having a policy which allows any driver over a certain age, most probably 17 in this instance, will allow them to freely carry on with their daily business without the hassle of making numerous phone calls.
Be Wiser Insurance conducted research into the difference in cost of having an ‘Any driver’ insurance policy and then compared it to having 3 named drivers and also having just the policyholder. The results have revealed that the insurance premium can increase by 198%. The premiums for the three separate policies are shown below.
- Policyholder only: £262.83
- Three NamedDrivers: £451.94
- Any Driver Over 25: £784.12
Most insurance policies issued in the UK allow you to add up to three additional drivers, with some allowing you to add as many as four or as little as two. Practice will vary between insurance companies and it is best to check with the insurers before purchasing cover.
As we can see, adding three named drivers to your policy increases the premium from £262 to £451 but this will all depend on the individual characteristics of those drivers being added. For example, if the drivers are all young, inexperienced and/or have a poor claims history the additional premium will be greater than quoted due to the higher exposure of risk. Likewise if the drivers are older, have more experience and a near-perfect driving history, then this will see a reduction in the premium.
As we can see, it’s probably best to avoid ‘Any driver’ policies, due to the increased premiums which you will inevitably have to pay. That said, ‘Any driver’ policies can be useful in certain situations and, depending on the individuals that you intend to allow to drive your vehicle, may be cheaper than specifically naming them, always subject to the individual risk profile characteristics.
Any driver policies, however, tend to be difficult to find and may only be available from specialist insurance companies. For this reason it may be worth restricting the number of drivers you have to the insurance company’s permitted maximum in order to reduce the premium charged. If you have several individuals who will drive the vehicle for short periods of time, it may be worth you adding them onto your policy on a temporary basis, rather than having ‘Any driver’ for the duration of the insurance.
In summary, you need to explore all options to ascertain which will be the most cost-effective. A broker such as Be Wiser will do the leg-work for you and offer professional advice on the most suitable cover.