Named Driver Clause (Fahrerkreisklausel)

Purpose

The named driver clause defines the group of people who may regularly drive an insured vehicle and whose individual accident risk (age, driving experience, claims history) feeds into the premium calculation. The narrower the agreed driver circle – for example restricted to the policyholder and their spouse or partner – the more precisely the risk can be assessed and the lower the premium tends to be; an open driver circle without restriction increases the premium accordingly.

Effect and limits

Under motor third-party liability insurance, protection for injured third parties generally continues even where the named driver clause has been breached, because victims have a statutory direct claim against the insurer. The insurer may, however, seek recourse against the policyholder in the internal relationship; such recourse is capped in amount and generally requires that the policyholder, keeper or owner committed or culpably enabled the breach themselves. Under own-damage (comprehensive) cover, incorrect statements about the driver circle can lead to more severe consequences, up to complete denial of indemnity, particularly where the actual circle of users was fraudulently concealed.

Negotiation and practice

Frequent users of a vehicle – such as newly licensed children or partners – should be added as named drivers rather than driving informally, since incorrect statements discovered later can be treated as a breach of the pre-contractual disclosure duty. For multi-driver households with changing users, an open rather than a named driver circle can be economically preferable despite the higher premium, in order to avoid disputes in the event of a claim.