two car insurance questions please?

Weakestlinks

Hi
I have two questions related to car insurance that I hope someone can help with. The two questions are not related.

Q1. My son has just passed his driving test and is looking to get insured on our family car. He wants his own insurance so he can start building up a own no-claims bonus. However, I have read a lot of Internet chatter about it not being possible (or more accurately it is possible but not a good idea) to have two insurance policies on the same vehicle. I wouldn't have thought I'm unique in having a son\daughter who wants to drive the family car under their own insurance to start to build their no-claims bonus. I also don't want him to be a named driver under my insurance as I suspect this might impact my own no-claims bonus should he have an accident - would that be the case?


Q2. Completely unrelated but something I've never understood - My own insurance policy allows me to drive other vehicles with the owners permission as long as they other vehicle is insured. If I am driving another persons vehicle under this clause and have an accident - whose insurance pays out? is it mine or person who is the vehicles policy holder?

many thanks in advance
Jon

DCFC79

I'm sure there's an insurer where a named driver will earn own ncd, cant recall the insurer.

MovingForwards

DCFC79 wrote: »

I'm sure there's an insurer where a named driver will earn own ncd, cant recall the insurer.

Zenith used to, not sure if they still do.

eddddy

Weakestlinks wrote: »

Q2. Completely unrelated but something I've never understood - My own insurance policy allows me to drive other vehicles with the owners permission as long as they other vehicle is insured. If I am driving another persons vehicle under this clause and have an accident - whose insurance pays out? is it mine or person who is the vehicles policy holder?

It's your insurance policy that covers you, so it's your insurer who pays out.

But the cover will almost certainly be 3rd party only.

So if you hit another car (and it's your fault), the insurer won't pay for damage to the car you're driving, only for damage to the car you hit.

Weakestlinks

eddddy wrote: »

It's your insurance policy that covers you, so it's your insurer who pays out.

But the cover will almost certainly be 3rd party only.

So if you hit another car (and it's your fault), the insurer won't pay for damage to the car you're driving, only for damage to the car you hit.

Great - thanks. I think that answers Q2.

I'm not sure I have an answer to Q1 yet - thanks for the replies on Q1 btw, but I'm of the opinion that an accident where my son was at fault would mean I would lose my no-claims if he was just a 'named driver' on my insurance. So I think the only way he could build a no-claims without risking my no-claims, would be for him to have insurance in his name on a car that I would also have insurance on in my name. I don't really want to rely on any 'protected no claims' for me to be the only safety net.
If there is no mechanism for this then that's fine, but I guess that's the question I'm asking.

thanks

rs65

Weakestlinks wrote: »

He wants his own insurance so he can start building up a own no-claims bonus.

He'll be spending a lot of money to try and build up no claims, which he may not achieve.

I would rather wait 4 years and start then with zero NCB than pay younger drivers prices in the hope that I don't claim in those 4 years

rudekid48

Dual insurance is not unheard of but it does present some challenges and complications! For example - the car gets stolen whilst parked up at your home - which policy do you claim on? In this instance where dual insurance exists, the 2 insurers covering the vehicle would normally split the cost of the claim 50/50 which would result in both of you losing no claims bonus.

Also, it is often cheaper for young drivers to add a parent as a named driver to reduce the premium - this would also add a huge complication if you were driving and had a crash!

If someone like Dacouch sees this thread, they'll be able to give you a better answer than me on the technical issues that having 2 policies can bring.

Policies offering named driver NCB are not that great as the bonus earned can only be used with that insurer.

If he wants to build up his own NCB then get him a cheap run-around that he can insure in his own name. That's the cleanest way to do it.

If you just want him to be mobile then you will probably have to just bite the bullet and put him as a named driver on your policy.

Weakestlinks

Great stuff - thanks very much. That's a lot clearer to me now.

cheers