Driver only insurance, also known as "named driver" or "single driver" insurance, is a type of car insurance policy that only covers a specific named individual, usually the car's owner. This means that no one else is allowed to drive the insured vehicle.
Here's a breakdown of the key features:
Pros:
* Lower Premiums: Typically, driver only insurance is significantly cheaper than comprehensive car insurance, as the insurer only needs to cover one driver's risk.
* Flexibility: You can choose to drive any insured car, not just your own, as long as you're the only driver.
* Good for Low Mileage: If you don't drive often, driver only insurance can be a more cost-effective option.
Cons:
* Limited Coverage: Driver only insurance only covers you when driving, and not the car itself. This means you won't be covered for damage to the car, theft, or any other incidents.
* No Third-Party Coverage: If you're driving a car covered by driver only insurance and cause an accident, you won't have third-party insurance to cover the other driver's car or injuries.
* No Coverage for Other Drivers: If someone else drives your car, they will not be insured, and any accident they cause will not be covered.
When Does Driver Only Insurance Make Sense?
Driver only insurance can be a good option if:
* You are the sole driver of the vehicle.
* You rarely drive the vehicle.
* You are on a tight budget and can't afford comprehensive insurance.
* You have a high risk profile (e.g., young driver, poor driving record) and struggle to find affordable insurance.
Important Considerations:
* Check with your insurer: Make sure your insurer offers driver only insurance. Some insurers may not offer this option.
* Third-party insurance: It's crucial to have separate third-party insurance to protect you from liability if you cause an accident in a car covered by driver only insurance.
Ultimately, the decision of whether or not to opt for driver only insurance depends on your individual circumstances and driving needs. Carefully weigh the pros and cons before making a decision.
