There are 2 main basis of driving conditions for motor insurance policies. 

• Any Authorised Driver (or “Any Driver”) and
• Named Driver only. 

Any Authorised Driver basis

This type of policy covers any person with a valid license to drive in Singapore with your permission. This is most common for mass market and nonhigh performance vehicles. 

Some insurers also have age condition policies, which adds an additional condition that the authorised driver(s) must meet the age condition under the insurance policy. 

Named Driver basis

This type of policy restricts the insurance cover only whilst individuals who are Named Driver in the policy. In the event of an accident, if the vehicle is driven by any person other than those named in the Policy Schedule, the insurer will not be liable for any loss under this Policy. This is most common for high performance and high value vehicles.

I have an any Authorised Driver policy. Why do I still have to add Named Drivers?

Not to be confused with Named Driver Only basis policies, adding a Named Driver into an Any Authorised Driver basis policy has its merits at times. 

Whilst an Any Authorised Driver basis policy gives flexibility to others other than the owner to drive the car, the insurance policy excess will only apply to drivers who are added into the policy. By adding these drivers, you declare in advance the driving profile of those who might be driving your car. The insurer will thus get a clearer picture of the risk profile of insuring your car and feel more comfortable giving the same excess for your named drivers. We would advise to add drivers who drives the vehicle frequently in to your policies, to avoid higher excess during an event of claim.

For all other unnamed drivers who you allow/authorise to drive your car, an additional excess will apply to them. And for Young and/or inexperienced unnamed drivers, a much higher excess will apply.

Who are defined as Young and/or Inexperienced drivers?
It is usually defined as drivers who are below the age of 23 and/or has less than 2 years' driving experience. This definition varies across insurer, and you should always check the specific insurer’s definition for young and/or inexperience driver.

How do I calculate what excess is applicable?

Your policy

Your Excess: $700

Your Named Driver’s excess: $700

Your unnamed friend’s excess: $700 + $800 = $1,500

Your unnamed young son’s excess: $700 + $3,000 = $3,700

Should I add my son who just gotten his driving license as a named driver so that he can enjoy the same low policy excess?

Whilst it might be tempting to add in your son who has just gotten his driving license as a Named Driver, it might not always be cost effective. 

For someone who is young and has just gotten his driving license, adding them into the policy might cause your insurance premium to go up. A specific excess might still be imposed on them, one that is higher than your policy excess. Young and inexperienced drivers are deemed as high risk profiles, and once they are added as a Named Driver, the risk of this motor insurance goes up. 

It might then be more beneficial not to add them in as a named driver and let them drive the vehicle as an unnamed authorised driver, with the additional young and/or inexperience driver excess applicable to them.

We have shared about the most common driving condition basis insurance policies in Singapore. These conditions vary across every insurer, and you should always read the terms & conditions clearly for each insurance policy before accepting it.