Young Driver Insurance on Your Parents' Car

Insuring your first car can be expensive, so it's understandable that many young drivers choose to drive a parent or guardian’s car before buying their own.

So, if you're planning to drive your parents' car occasionally, or you’re learning to drive in it, make sure you've got the right insurance cover to stay legal. 

Can I drive my parents’ car? What about insurance?

In the right circumstances it's perfectly ok to be insured as a named driver on your parents' policy, but there are several reasons why it's not always the best idea, and in some cases, you might even be breaking the law!

Can I drive my parents' car without insurance?

No, you'll need at least third party car insurance if you want to drive your parents' car. You must be properly insured if you drive on the public road, no matter how short the distance, even if your parents have given their permission for you to drive the car, and even if they have their own insurance policy on the vehicle.

How to make sure you're properly insured to drive your parents' car

You have a couple of options. The first is for your parents to add you as a named driver to their existing insurance policy. The second is to take out a temporary policy, in your own name, that covers you to drive their car.

Become a named driver on your parents' insurance policy

Whether you've recently passed your test, or you still have a provisional driving licence, your parents' insurance company might agree to add you to their policy if you are not the main driver, and your parents are the registered keeper of the vehicle. But it does have disadvantages:

Disadvantages of being added to your parents' insurance

• Risk to their No Claims Bonus (NCB) - if you are involved in an accident while driving a parent’s car as a named driver, their NCB could be affected, which may increase their insurance premium in future.
• Cost - the insurance company will charge an additional premium to add you to your parents' policy, this could be an expensive way to cover you if you’re only an occasional driver.
• Inflexibility - adding and removing named drivers can be time-consuming, especially if you need multiple short periods of cover. Some insurers also refuse to add drivers under 25.

Temporary insurance on your parents’ car

Short-term car insurance allows you to get flexible insurance on a parent’s car, so they don’t have to add you to their policy as a named driver.

It can be cost-effective if annual cover is too expensive, and you don’t drive very often, and lets you drive someone else’s car without risking their no claims bonus.

Temporary car insurance is usually available by the hour, day, week, or month so you only pay for the amount of cover you need.

Short-term insurance is a good option for student drivers who only need to use their parents’ car during university holidays.

Provisional driver insurance on your parents’ car

You don’t need a full driving license to take out insurance in your own name. If you're still learning to drive, there's also the option of taking out learner driver insurance that covers you to practice in your parents' car, without risking their no claims bonus if you have an accident. 

Learner driver insurance is available as temporary and annual policies, so you can get as much practice as you need.

Compare young driver insurance on your parents’ car

Compare insurance options and find the best cover for you, your budget, and the flexibility you want to drive your parents’ car.

I have insurance on my own car - am I covered to drive my parents' car, too?

Some comprehensive insurance policies do provide basic cover to drive other vehicles, but cover for driving other vehicles is often only intended for emergency situations, so check your policy wording carefully.  

There may also be restrictions on age (many exclude drivers under 25 years old), occupation, and the type of vehicle. 

If your policy does permit it, the cover is usually third party only, so if you have an accident, you could be footing the repair bill yourself!

What will happen if I drive my parents' car without insurance?

If you're caught driving without insurance the consequences can be severe.

The IN10 conviction code brings with it a minimum of 6 penalty points, a potentially unlimited fine and even, in serious cases, disqualification. 

Your parents' car can be impounded by the police and even destroyed in some circumstances. 

The conviction will stay on your licence for years and you'll have to disclose it to insurance companies when you apply for insurance. This can make it more expensive to buy insurance. 

If your parents knowingly allow you to drive their car without insurance, not only could you find yourself charged with an offence which may lead to a conviction, your parents could also be in trouble.

When it's ok to be covered by your parents' insurance

The car must belong to one of your parents and they must be the main driver for the insurance policy to legally be in their name.

• You are only an occasional driver (i.e. your parents are the main drivers, but you have their permission to drive the car sometimes) and
• Your parents are the registered keeper of the vehicle (i.e. DVLA records show that your parents own the car)

If you own the car and you are the main driver, you're breaking the law if the policy is not in your own name -  this is called "fronting".

Car insurance and the law - illegal "fronting"

Parents have to tread a fine line if they're trying to help their children get cheaper insurance. If they take out a policy in their own name, naming the child as an additional driver, or they add their child to their existing policy, they are breaking the law if their son or daughter is actually the main driver of the vehicle.

Premiums are calculated largely on the risk presented by the policyholder, so pretending that an experienced parent is a more regular driver of the car than their inexperienced child is fraudulent. This practice is called “fronting”, but many parents and young drivers are unaware that it's illegal.

Such situations often come to light when a claim is submitted, but far from settling the claim, the insurance policy might be cancelled. The young driver could also find themselves in court, charged with driving without valid insurance and facing a stiff penalty.

Do you get no claims bonus as a named driver?

You won't earn your own no claims bonus while you're a named driver on someone else's policy.

Only the policyholder can earn the full rate of no claims bonus, so until a young driver has an insurance policy in their own name, they won't build up the usual no claims bonus.

Building up your no claims discount on a policy of your own is the fastest way to reduce your insurance premium.

When you should get a policy in your own name

If you are the owner of a vehicle, or drive it more regularly than anybody else, in all likelihood you ought to be the policyholder too.

While the first year's premium might seem high, after just one year with no claims, the discount you've earned will make your own policy much more affordable. And that discount just keeps getting bigger over the next few years.

Related information

Insurance for Learner Drivers

Insurance for Young and New Drivers

Insurance for Teenage Drivers