Drivers
Learner driver on a parent's car: does it affect the no claims bonus?
It can. A fault claim while a learner drives as a named driver can cut the parent's no claims bonus, and the learner usually builds none of their own.
It can, depending on how the learner is insured. If they are a named driver on the parent's policy, a fault claim while they are driving could reduce the parent's no claims bonus, and the learner usually builds up no bonus of their own; with a separate learner driver policy, the claim sits on the learner's own cover instead.
So the real question is which of the two routes the learner is using. Here is how each one works, what happens to the bonus if something goes wrong, and what to look for in the policy wording.
What are the options for insuring a learner on a parent's car?
If the learner is practising in a family car rather than an instructor's car, they need their own insurance cover to drive it, even for the odd practice session. Lessons in a driving school or instructor's car are normally covered by the instructor's professional policy, according to Which?.
GOV.UK sets out two ways to insure a learner on someone else's car:
- The car owner adds the learner to their own policy as a learner (a named driver).
- The learner takes out their own learner driver insurance, which runs separately from the owner's policy.
Here is how the two compare on the points that matter for the no claims bonus.
| Named driver on the parent's policy | Separate learner driver policy | |
|---|---|---|
| Whose policy a claim goes on | The parent's | The learner's |
| Can a claim affect the parent's no claims bonus? | Yes, a fault claim could reduce it | The claim is on the learner's policy, not the parent's |
| Does the learner build their own no claims discount? | Usually not | It can let them start building one |
| Effect on the parent's premium | Adding a learner is likely to increase it | Runs separately from the parent's policy |
| Who sets it up | The policyholder | The learner (or someone on their behalf) |
The table draws on the Which? guide to learner driver insurance, which notes that being a named driver "could impact the policyholder's no-claims discount if you have an accident", while a dedicated learner policy lets you start building your own discount. Terms differ between insurers, so the exact position always comes down to the policy wording.
Will a learner's accident affect the parent's no claims bonus?
If the learner is a named driver on the parent's policy, the claim is made on that policy. A no claims bonus belongs to the policy and its holder, so the parent's bonus is the one at risk.
Whether it actually drops depends on how the claim is recorded:
- Fault claim. The Financial Ombudsman Service explains that a "fault claim" is recorded when the insurer cannot recover its costs from someone else. That covers accidents that were the learner's fault, and also some that were not, such as a hit and run where the other driver cannot be traced. If a fault claim is recorded, it is likely to reduce the no claims bonus unless it is protected. The Ombudsman says the usual reduction is two years, so for example four years of bonus would drop to two.
- Non-fault accident. If the insurer recovers its costs in full from the other side, the bonus should not normally be affected. If you report an accident that was not your fault but do not claim yourself, the Ombudsman says the insurer should only treat it as a claim if the other driver claims against you.
- Reported but no claim. A minor accident you report without claiming normally stays on the insurer's record but will not affect the bonus. It can still push the premium up, because insurers see it as a sign of higher risk.
Does protecting the no claims bonus help?
A protected no claims bonus means the bonus itself does not go down if a fault claim is recorded. The Ombudsman is clear that this does not mean the price is protected, so the premium can still rise at renewal after a claim. Protection usually allows a set number of claims over a set period, and the limits vary from policy to policy.
Does a learner build a no claims bonus on a parent's policy?
Usually not. Which? explains that the discount is typically earned by the main policyholder, not named drivers, although it reported, citing Defaqto, that 13% of 317 comprehensive policies allowed a named driver to earn one. Its young driver guide adds that some insurers reward named drivers for claim free years, but only if they later take out a policy with that same insurer.
That matters once the learner passes. If they have spent their learning months as a named driver, they will usually start their first full policy with no bonus behind them. Even where a named driver has earned some bonus, Which? warns that some insurers may not recognise it, so it is worth asking how any named driver years would be treated.
With a separate learner driver policy, the learner is the policyholder. Which? says this route lets the learner start building their own no claims discount. How much a learner policy counts towards a bonus, and whether it carries over to a new insurer after the test, depends on the provider, so these are the questions to ask when you compare learner driver insurance quotes.
What happens to learner insurance after the driving test?
Learner cover ends the moment the learner passes. Which? points out that the new driver then needs a policy for full licence holders, and they need it in place before driving home from the test centre.
If they were a named driver on a parent's policy as a learner, the parent will need to tell their insurer about the change of licence. If they had their own learner policy, they will need a new policy for qualified drivers. Either way, it helps to sort this out before test day rather than after.
Can a parent put the car in their name to keep costs down?
Only if the parent really is the main driver. Listing a parent as the main driver of a car that the young driver mainly uses is called fronting. The Association of British Insurers describes it as a parent or older person pretending to be the main user of a car when a younger person is actually driving it, and says it is fraud.
The consequences can be serious. The ABI says a fronted policy could be declared invalid, leaving the people involved to pay any costs from an accident themselves. Which? adds that dishonest declarations can lead to prosecution, a criminal record and an entry on the Insurance Fraud Register. The Financial Ombudsman Service lists fronting among the common pitfalls in young driver complaints it sees.
Adding a learner as a named driver on a car the parent genuinely drives most is legitimate. The point is that the main driver has to be declared honestly.
What rules apply to practising in a parent's car?
The insurance is only one part of it. Under the GOV.UK rules for practising with family or friends, the supervising driver must:
- be over 21
- be qualified to drive that type of vehicle (for example, holding a manual licence to supervise in a manual car)
- have held a full driving licence for 3 years (from the UK, the EU, Switzerland, Norway, Iceland or Liechtenstein)
GOV.UK notes that some insurers set a higher bar, such as a supervisor aged over 25, so check the policy's definition of a supervisor as well as the legal minimum. GOV.UK also says it is illegal for the supervisor to use a mobile phone while supervising, and learners cannot practise on motorways with family or friends.
The penalties are steep. GOV.UK says a learner can be fined up to £1,000 and get up to 6 penalty points on their provisional licence for driving without the right supervision. Driving without insurance can mean an unlimited fine, a driving ban and up to 8 penalty points.
What to check before choosing
- Whose no claims bonus a claim would count against, and whether the parent's bonus is protected.
- Whether a learner policy lets the learner earn a no claims discount, and how other insurers would treat it after the test.
- The insurer's definition of an eligible supervisor, including any age limit above 21.
- Whether the cover is comprehensive or third party, and what the excess is.
- When the cover ends and what the learner needs in place for the drive home after passing.
If you are also looking at the parent's own policy, our guide to car insurance covers the basics, and Kompare's brokers can quote for learner cover on a family car.