Direct Line launches industry first no claims discount for additional drivers

Direct Line has launched a unique no claims promise enabling motorists to save hundreds of pounds on their car insurance.

Anyone named on a Direct Line car insurance policy can now build up his or her own no claims discount, regardless of whether the principal policyholder has a claim. This means that when they take out their own insurance they are able to transfer their no claims entitlement to their own policy, potentially saving them up to 70% off their insurance.

Until now named drivers have been unable to build up their own no claims meaning that even if they had no accidents they would have to start from zero years no claims when they take out a policy of their own.

Direct Line is the only insurer to honour NCD for named drivers and estimates that 18 million motorists are currently driving on someone else’s policy, all with the potential to earn their own NCD.

The new policy is now open to all customers and for existing customers can be backdated to a maximum of five years.

Named drivers of any age can benefit from the policy and it is expected to be of particular interest to young drivers who often struggle to take out their first insurance and consequently drive their parents car for the first two or three years of driving meaning with any other insurer they are simply postponing the problem.

With Direct Line they would benefit from a 40% discount had they been driving for two years under their parents policy.

The following examples show the discounts available with Direct Line on a fully comprehensive policy, whereas with any other insurer the driver would start off with 0% no claims.

Scenario one: male, 21 years old, three years driving experience on his dad’s policy would get a 50% discount.
Scenario two: female, 38, been driving on husband’s policy for seven years would get a 65% discount.
Scenario three: male, 50, been driving on a friend’s policy for five years would get a 70% discount.

Emma Holyer, Motor Spokesperson for Direct Line commented: "No other insurer recognises named drivers in this way and this is major step forward for those 18 million motorists who have been paying over the odds for their insurance. We don’t think it is fair that named drivers who have experience behind the wheel cannot benefit from their safe driving experience."