What Is An Open Driving Policy and Is It Right for You?

This type of policy offers flexibility for vehicle owners who need multiple drivers behind the wheel. But while it sounds like the ideal solution, it's not always the most cost-effective or necessary choice. In this guide, we'll break down how an open driving policy works, who it's best suited for, what it covers, and how to decide if it's the right move for your business or household.

What Is An Open Driving Policy?

An open driving policy is a type of policy that allows multiple people to legally drive your vehicle, without the need to name each driver individually.

It differs from a named driver policy, where only the listed individuals are insured to drive the vehicle. With open driving cover, as long as a person meets the insurer's criteria (usually age and licence type), they can get behind the wheel.

Common Use Cases

• Business fleets where employees may need to switch vehicles
• Delivery operations with rotating drivers
• Families sharing a vehicle for personal errands or weekend trips

Minimum Driver Requirements

Insurers typically set criteria that any driver must meet. These criteria may vary based on the policy type (PPV, Private Car, Commercial etc.) and may include:

• Aged 21-70
• Holding a driving licence at least 1 year old
• Having no major driving convictions or high-risk history

Always check the specific terms of your insurer, as these can vary widely.

Who Needs An Open Driving Policy?

This policy is ideal for those who need maximum flexibility with minimal admin.

1. Business Owners with Multiple Employees

If your employees need to share or rotate vehicles, whether for deliveries, transport, or site visits, this policy removes the hassle of updating driver lists.

2. Households with Multiple Drivers

If several family members or housemates use the vehicle, especially for errands or school runs, this type of insurance avoids the need to name each user individually.

3. Fleet Managers or Delivery Companies

Companies with multiple vehicles and multiple drivers often opt for this cover to simplify their logistics, though fleet insurance may be a more cost-effective alternative in some cases.

Persons who purchase an open driving policy have a greater responsibility to ensure that the vehicle is properly monitored at all times and remains in the care and custody of an eligible responsible driver.

What Does It Cover?

Any driver policies typically offer the same coverage levels as standard policies, including:

Third Party Only – The legal minimum; covers damage to other people's vehicles or property.

Third Party, Fire and Theft – Adds cover for fire damage and theft of your vehicle.

Comprehensive – Covers everything above plus damage to your own vehicle, even if you're at fault.

Business vs. Personal Use

Make sure your policy is tailored to your vehicle's use:

Business use covers work-related driving, delivery routes, transporting tools, etc.

Social use is for personal errands, family trips, and recreational driving.

Be upfront about the primary use of your vehicle, misrepresenting this can lead to your claim being denied.

Pros and Cons of An Open Driving Policy

Pros

Convenience: No need to update your policy every time someone new needs to drive.

Flexibility: Useful for businesses or families with unpredictable vehicle usage.

Time-saving: Ideal when managing multiple vehicles or last-minute driver changes.

Cons

Higher premiums: The wider the pool of potential drivers, the more risk to the insurer.

Age restrictions: Some insurers don't cover drivers under a certain age, or charge a hefty excess.

Exclusions apply: Drivers with poor records or certain professions may not be eligible.

How Much Does It Cost?

Unsurprisingly, open driving cover is more expensive than a named driver policy. Why? Because the insurer is taking on more unknowns and assuming a higher level of risk.

Factors That Influence Cost

• Type of vehicle (payload, modifications, etc.)
• Usage type (business use usually costs more)
• Driver risk profile (based on claims history, points, etc.)

Alternatives to an Open Driving Policy

Named Driver Policies

These policies allow you to add only the individuals who actually use the vehicle. This is usually a cheaper option but requires regular updates if drivers change often.

Fleet Insurance

If you have multiple vehicles and drivers, fleet cover may offer a better value while still providing flexible use.

Conclusion

An open driving policy offers unmatched flexibility, but it comes at a higher cost and with stricter eligibility rules. It's ideal for businesses with multiple drivers, busy families, or anyone who needs adaptable cover with less admin.

If your vehicle has just one or two regular drivers, a named driver policy or temporary insurance might make more financial sense.

Not sure what's right for you? At Autosmart, we'll help you compare options and find a policy that fits your needs and your budget.

Ready to talk? Contact us today or get a quick quote at www.autosmartinsurance.com