Do You Need a Driver's Licence to Insure a Car?

Q.

My mother has inherited my father's car after he passed away. She has no licence but wants to keep the car; the idea was she would own the vehicle and my sister would become the registered keeper and insure the vehicle for herself only to drive.

The insurance company say that the vehicle cannot be insured if the owner has no licence, even if they are not driving it. This seems illogical to me, is it true?

A.

You cannot legally drive without a driver's licence, and most insurance companies make this a basic condition for being granted car insurance. In this particular situation, your sister is the only person who is likely to be insured for the vehicle (provided that she holds a valid UK driving licence herself) but she does not need to actually own the car to do so.

Based on this, your mother can theoretically retain ownership of the car with your sister as the registered keeper but it may not be as straight-forward as this. The registered keeper of the vehicle is responsible for keeping the vehicle up-to-date with its MOT and road tax, as well as taking care of any parking tickets or speeding fines that are awarded.

Legal Owner Versus Registered Keeper?

Some insurance companies will refuse to insure you if you are not the registered keeper as it can complicate matters when the owner and registered keeper are two different people. If your sister is going to be maintaining everyday control of the car, it makes much more sense for her to become the owner of the car, especially as it solves the potential complications of having a separate owner and registered keeper.

Named Drivers

If your mother was in possession of a valid UK driving licence, it would be possible for her to nominate your sister as the named driver on an insurance policy. For example, insurance can be taken out for a son or daughter – assuming that he or she will not be the main driver of the vehicle – as long as the insurance company is informed that this is the case. This may affect the insurance premium, especially if he or she is a new driver. However, insurance companies can deem the insurance invalid if this is not done and they feel that they have been misled as to who really is the main driver of the vehicle. This option is more common for those who are going to be sharing the use of a vehicle and therefore need to name other drivers on the insurance policy.