That depends on your individual circumstances.
Generally though, the pro’s and cons of the 2 options are as follows :
Named Driver on Annual Policy
- Inflexible : for example if you want to borrow the car say once every 3 months
- Could be expensive : some insurers charge a hefty admin fee every time they make an alteration to an annual policy
- On the other hand though for regular borrowing, may be the most cost effective method
- May not be feasible : the annual insurer may refuse to add an additional driver, say if it’s an Over 50 policy or a company car
- The annual insurer may be difficult to contact, especially out of office hours
- Consider the Claims angle : any claim you make as a Named Driver will affect the No Claims Discount of the vehicle owner
- As the annual policyholder controls the insurance, they can be certain that their asset is fully protected when they lend you their car
Temporary Insurance
- Most likely cheaper for one-off borrowing, not such good value for regularly repeated borrowing
- Easy to arrange and administer – no need to contact the annual insurer of the vehicle
- Available online 24/7, 365 days a year
- Claims on the temporary policy usually have no impact on the vehicle owner’s NCD
- Some of the additional service options available on the annual policy may not be available on the temporary policy – such as provision of a Courtesy Car in the event the borrowed vehicle is damaged
- Temporary insurance may be difficult/very expensive to source for certain drivers, for example young drivers in mnajor city centre postcodes looking to borrow a relatively powerful vehicle
Category:
Car Sharing