Insurer in driver discount dispute

02nd October 2009

If something sounds too good to be true, it probably is, right? Well, that’s certainly the case with Direct Line’s accrued No Claims Discount (NCD) for named drivers.

The insurer was the first firm to offer this deal, which is particularly tempting for parents helping teenage kids get a foot up the insurance ladder.

But Auto Express has discovered that these named motorists don’t get the same level of saving as the policyholders themselves.

Instead, Direct Line has admitted that they receive 25 per cent less NCD. This specific figure is not mentioned
anywhere on the cover provider’s website, though.

It reads: “If you have named drivers on your Direct Line car insurance policy, you (and they) will be pleased to know that we have become the first major UK insurance company to offer Named Driver No Claims Discounts.”

It does include the caveat: “The Named Driver No Claims Discounts may be lower than the NCDs available to you as the policyholder.” However, the use of the word “may” is also misleading, as named parties never receive the full discount.

A spokesperson told us: “The situation is made clear enough on our website. A named driver won’t be using the car 75 per cent of the time and yet they get three-quarters of the NCD.”

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