Insuring the Correct Driver

Insurance terminology is often hard to understand and confusing, but it is essential that policy holders acquaint themselves with these terms. Failure to do so could result in car insurance claims being declined. A prime example is the term 'nominated driver' and 'regular driver'. They may seem to be identical, but they have very different meanings and are not interchangeable.

One of the factors insurance companies use to assess the amount of risk associated with a car insurance policy is the driver of the vehicle being insured. Drivers with a bad driving record, including accidents and traffic transgressions, typically are a higher risk and therefore have higher insurance premiums. Good drivers, who have no accident history, are rewarded with lower premiums. It is therefore very important to tell your insurance company exactly who is going to be driving the vehicle being insured. If it is more than one person then this information must be supplied.

Regular Driver

Most insurance policies define the 'regular driver' as the person who uses the vehicle more frequently than anyone else. Always check that this is the definition provided in your policy. A 'regular driver' policy identifies and covers the person who uses the vehicle on a regular basis, but also provides cover to other drivers who occasionally or infrequently make use of the vehicle. These secondary drivers are provided cover as long as they have a valid driver's license and do not use the vehicle more often than the primary driver listed on the policy.

A good example is if both a husband and wife make use of a particular motor vehicle. If the wife uses the car to commute to work during the week and the husband only utilises it on the weekends, then the wife will be the 'regular driver'. The wife's name will then be stated on the policy. If the husband or a friend happens to be driving the vehicle and is involved in an accident then the insurance policy will still pay out for the damages to the vehicle.

Nominated Driver

A 'nominated driver' is the only person who uses the insured vehicle. This means that cover is only provided to this one single driver and should someone else drive the vehicle and be in an accident then the insurance policy will not cover the damages. To continue the husband and wife example, should the wife be listed as the 'nominated driver' and the husband or brother crashes the vehicle, then the insurance company will not pay out for the damages.

As you can see the difference between the two terms is considerable and confusing them can be disastrous. If the incorrect driver details are supplied, the insurance company could void the policy or decline to pay out on any claims. Should you take out a policy for a vehicle and the nominated or regular driver changes, then it is essential that you revise your policy with your broker or insurer in order to avoid declined claims. If you already have an insurance policy, read through it and check whether all drivers are in fact covered.

Stuart Broad is a marketer at InsuranceHound.co.za and has vast experience in the insurance industry. He recommends that consumers shop around for Insurance appraisal and car insurance quotes and learn about Assurance Companies like AIG and Old Mutual.

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