Car Insurance

[roopower]

My 27 year old son has always been a named driver on my car insurance, driving my car. We are insured with Direct Line so he has one year no claims, providing we reinsure with them. I would like to make him the main driver, I would have to be a named driver as our other car is a company car. Would it be cheaper if I gave the car to my son and had log book names changed.

[Hopkirk]

Watch out, the new car tax rules mean that if you change ownership you end up paying an extra months road tax.

Change now and you pay until the end of May and get an automatic refund of tax from then, but he has to tax it from May 1st.

[bhg481]

Be careful if you "give" the car to your son. Under the new rules the road Fund License will expire on the day you give it to him (you will be refunded all complete months' unused tax) and he will have to tax it gain from the beginning of the current month, so you'll lose 1 month's tax.

[roopower]

Thanks, why is life so complicated?

[bhg481]

Re-reading your original post, I can see no reason why you can't keep the policy in your name but make him the main driver. That way you retain your full no claims bonus.

[ummmm]

I was thinking the same bhg. The main driver doesn't have to be the legal owner.

[roopower]

Thanks, bhg, I think that's what I'll do. He's going to replace the car later in the year and the 'new'car will be his anyway.