Do named drivers need to live at the same address as policyholder?

Named drivers do not need to live at the same address as the main driver (policyholder). So you can be living in London and still drive your parents' car even if your parents live in Manchester provided you are an additional driver on the car insurance policy. Note that named driver insurance is based on the fact that these drivers will be using the car only occasionally and the main driver will use the car more often.