Named Driver vs Own Policy: The Parent's Dilemma (2026)
Quick answer
Adding your teenager as a named driver to your existing policy costs less upfront (£400–£800/year), but they won't build their own No Claims Discount. Getting them their own policy costs more to start with (£1,932 average for a 17 year old), but it's the only way to build the claims history that will bring their premiums down longer term. The choice isn't about money alone. It's about prioritising short term savings vs long term independence.
What is a named driver policy and how does it work?
A named driver policy means your teenager is added to your existing car insurance as an additional driver. They're legally covered to drive your car. The insurer calculates the extra premium based on their age and driving history (or lack thereof). The car stays registered to you, you're the policyholder and any claims affect your No Claims Discount, not theirs.
An independent policy makes your teenager the main driver and policyholder. They insure a car in their own name, pay their own premium and any claims (or clean years) affect their own future insurance costs.
Named driver status keeps your teenager financially tethered to you. It defers the single most valuable asset in UK motor insurance: a personal No Claims Discount. Experienced drivers with five years of claim free history can reduce their premiums by up to 75%. Without that history, young drivers stay locked into the highest risk pricing bracket well into their twenties.
Why this matters for young drivers
For a 17 year old in 2026, the average annual premium for their own comprehensive policy is £1,932. That's nearly three times the national average of £726. The pricing reflects actuarial reality: drivers aged 17-24 account for 7% of licence holders but are involved in 22% of fatal collisions. Insurers use this to calculate their price.
Adding that same 17 year old as a named driver to a parent's policy costs £400-£800 more per year. That's a saving of over £1,000 in the first year. For families managing tight budgets, that's significant. But the saving comes with a hidden cost: time.
A driver who spends ages 17-20 as a named driver will face a £1,932+ premium when they need their own policy at 21. They'll still be priced as a "new driver" with no claims history, despite four years of driving experience. The named driver route offers immediate affordability but delays the process of building personal insurance equity.
The numbers: What named driver and independent policies actually cost
Here's what the two approaches look like over five years for a driver who passes their test at 17:
| Age | Named Driver (Annual Cost) | Own Policy (Annual Cost) | Own Policy (NCD Discount) |
|---|---|---|---|
| 17 | £600 (added to parent) | £1,932 | 0 years (0%) |
| 18 | £650 (added to parent) | £1,780 (-18%) | 1 year (15%) |
| 19 | £700 (added to parent) | £1,690 (-5%) | 2 years (25%) |
| 20 | £750 (added to parent) | £1,580 (-7%) | 3 years (35%) |
| 21 | £1,900 (first own policy) | £1,200 (-24%) | 4 years (50%) |
| Total | £4,600 | £8,182 | Value of NCD: Priceless |
The named driver approach saves £3,582 over five years, but only if the driver never needs their own independent policy. The moment they move out, buy their own car, or need to commute daily, they hit the "price cliff": a sudden jump to new driver premiums despite years of experience.
The independent policy costs more upfront but builds value. By age 21, the driver who took their own policy at 17 is already paying lower premiums than the named driver is facing for the first time. By age 25, the independent-policy driver could be paying £600/year while the former named driver is still working down from £1,500+.
What you need to know about fronting
"Fronting" is insurance fraud, not a technicality.
Fronting is when a parent claims to be the main driver when the teenager actually uses the car most. It became more common during the 2023-2024 insurance crisis when premiums hit record highs.
Insurers have invested heavily in detection technology. They use AI to analyse social media posts, ANPR data from toll roads and ULEZ zones and telematics patterns to find out when the declared "occasional driver" is actually the main user.
"Fronting is not merely a technical violation but a serious issue... it not only constitutes insurance fraud but also places young drivers at significant risk by leaving them without adequate coverage."
If a 19 year old student has an accident near their university campus hundreds of miles from home while listed as a named driver on a parent's policy, insurers will investigate. Fronting convictions carry serious consequences: policy invalidation, policy cancellation, criminal prosecution, and permanent records.
"The consequences for fronting can be severe and potentially life changing both for the youngsters and the person named as the policy holder... the parent may have more substantial assets in their name, including their house. All of these are potentially at risk if the insurer pursues them through the court."
"Fronting is not the answer – it's fraud and the consequences can be devastating. Not only could it leave your child uninsured in the event of an accident, but it could also impact their ability to get affordable insurance in the future."
"Occasional use" has a specific meaning
If your teenager drives to college three days a week, that's not occasional. It's regular commuting. If they use the car every weekend and for evening shifts at work, that's primary use, even if you drive it Monday to Friday.
The key test: who uses the car most frequently over the course of a year? If the answer is your teenager, they need to be the main driver.
How to decide: A framework for parents
Choose named driver if:
- Your teenager genuinely drives occasionally (less than twice a week)
- They're still learning and you want to protect your own NCD during their early high-risk months
- The car is primarily yours and they borrow it for specific trips
- They're under 18 and this is a temporary bridge until they can afford their own policy
- You live rurally where insurance is cheaper and they'll likely stay home for several more years
Choose independent policy if:
- Your teenager will be the primary user of a car (daily college commute, part-time job travel)
- They're going to university and taking a car with them
- You want them to start building No Claims Discount (NCD) immediately
- They'll likely move out or need independent transport within two years
- You're buying or designating a specific car as "theirs"
- You live in a high-cost region (London, Manchester) where telematics could cut premiums significantly
The telematics factor
For young drivers, telematics insurance (aka "black box" insurance) has become the default product in 2026.
For drivers aged 17-20, telematics policies offer average savings of £379 per year compared to standard policies. Some safe drivers achieve savings of up to 40%. Modern telematics systems have moved from the strict nighttime curfews of early models to cumulative "risk score" systems.
If you're opting for an independent policy for your teenager, telematics isn't optional. It's a must have. It's the only way to bring their premium from £2,000+ down toward £1,400-£1,500 in year one.
Regional and car considerations
Insurance costs for young drivers vary wildly by postcode.
| Region | Average Premium (Age 17) | Variance from UK Avg |
|---|---|---|
| London | £3,108 | +£1,986 |
| UK Average | £1,122 | - |
| Scotland | £963 | -£159 |
What to do next
If you've decided to add your teenager as a named driver, be honest about usage. If in doubt, call and describe the actual pattern.
If you've decided to get them their own policy, start by:
- Selecting a suitable first car in insurance groups 1-8
- Getting telematics quotes from at least three providers
- Considering an annual payment if you can afford the lump sum (it saves 15-20%)
- Adding an experienced driver (you) as a named driver on their policy (this can reduce their premium by 10-15%)
The decision you make at 17 sets the trajectory for the next decade of your teenager's insurance costs. Choose with both today's budget and tomorrow's independence in mind.
The First Car Roadmap
You've got the named driver question sorted. The Roadmap covers the rest of the process, from finding cars in the right insurance groups to what to check when you go to view one. Free download.