Hi everyone, Not the normal type of advice we need on here, but important anyway. I've just bought a my first car and need to insure it. Putting my parents on the policy makes it about £150 cheaper (£650 rather than £800) over the course of the year. However, if I make a claim on my policy for an accident when I'm at fault, will it damage my parents' no claims bonus? My understanding is that if they're named, they would only have to declare it if they had the accident themselves? Thanks. (I'm in the UK btw, don't know if that makes a difference)
My advice would be to call your insurance company and ask. If they are named drivers on your policy I doubt it would effect them but all the companies have different policies so better to double check.
I believe in the US, that with most companies, the "no claims" bonus is by policy, not by vehicle or driver. So if you had an accident, and your rules are similar to ours, it probably would affect them. But there are variations in how the policies are set up within each company, so it's definitely worth talking to your insurance agent. And if s/he tells you something you're going to rely on to make the decision, make sure you get it in writing (i.e, an email.)
That was my understanding. My parents are going to call their insurers tomorrow and get an answer. Anyone know why it is cheaper if you put your parents on the policy?
For the same reason that I get a discount on my car insurance for having a renter policy with the same company. Reduction in risk. One driver is more likely to have an accident than 3. So by underwriting a policy with 3 drivers, the company mitigates its risk on the policy by collecting more in premiums. Plus since 1 driver having an accident will effect the other 2, you are encouraged to engage in safer driving. Insurance is a fascinating business.
So, just an update. Mum spoke to her insurers (Churchill) and they said if she were a named driver on my policy and I crashed, there would be no impact on her policy as they look at the driver's history, not the history of the policies she has been on. Awesome
Here's a tip.. don't crash haha! I know accidents happen but if you're driving how you should be then you should be protected and perfectly fine!