It is estimated that there are approximately 18 million additional drivers in the United Kingdom. Some of these are young drivers who are named on their parent’s car insurance policy. Why? Many parents believe this is the cheaper option for their children as young drivers who take out insurance independently are often quoted very expensive premiums because they are regarded as high risk by insurers.

The disadvantage to this approach however, is that in the past additional drivers insured on policies could not build up any no claims bonus unlike the main driver or policyholder. Therefore, additional drivers looking to take out their own car insurance policies in the future would effectively start with zero no claims bonus.

Before 2006 this issue was regarded as “save now and pay later” as far as many young drivers were concerned until one major direct insurance company changed all that. Direct Line in January 2006 announced all additional drivers named on its policies would be allowed to build up no claim bonus entitlement allowing them to transfer this to their own car insurance whenever they choose to do so.

Although this is seen as a major shift by one insurance company it is not clear whether other companies will recognise Direct Line additional drivers no claim bonus entitlements. Direct Line however, see this strategy as a positive step for named drivers and in the process hope to sell more policies in the future to additional drivers who were once regarded as named on their policies.