As reported by the Express, Tempcover is warning motorists to avoid a car insurance ‘loophole’ that seemingly could save money but could actually land a driver with a fine, penalty points on their licence and even potential disqualification.
Drivers must have the most appropriate insurance for their vehicle to drive on a public road in the UK. Whether this is an annual policy or temporary car insurance, it’s a legal requirement. If caught driving without insurance or with an out-of-date-policy, drivers could receive:
- A £300 fine
- 6 points on their licence
- Potential discretionary disqualification
Now students are fully into their time at university, they might be tempted to borrow a friend or parent’s car when they come home to get around. It’s important to check the policy as most annual policies – even if they’re comprehensive – don’t tend to have the Driving Other Cars clause anymore.
If a student is a named driver on a parent’s car, it doesn’t mean they can borrow anyone else’s car or van to get where they need to go. The last thing anyone wants when running some errands or visiting some friends at home is a nasty fine – or worse!
To drive someone else’s car you need to have one or more of the following:
- Temporary car insurance on the other car you want to drive
- Be a named driver on someone else’s car insurance
- Driving Other Cars (DOC) cover on your own car insurance.
Drivers need to ensure they look at the details of their policy or prepare to face some severe legal consequences. Under 25s will rarely be covered to drive someone else’s car without being a named driver, and this applies to both annual and temporary car insurance.
Since they are inexperienced, young drivers often pay the highest amount for insurance, with many paying over £1,600 for their first year on the roads (Confused.com’s data shows that those who have held their licence for fewer than 5 years pay £1,688* on average for fully comprehensive insurance, compared to the overall average of £882).
While they could add themselves as a named driver on a parent’s policy, doing this means they will not gain any no claims bonus and could miss out on reduced price policies later on.
Driving without insurance is a serious offence. If a driver gains 12 or more points in the space of three years, they could have their licence revoked and then face even higher insurance rates once they can drive again, due to insurers perceiving the driver as higher risk.
Sources:
https://www.express.co.uk/life-style/cars/1955673/insurance-loophole-advice-warning-fine-penalty
