Young Adults On Their Parents Car Insurance Policies

March 26, 2013 by  
Filed under Car Insurance Policies

Article by Danny Aaron

It is a widely known statistic that a lot of young people under the age of 25 are listed as secondary drivers on their parents’ car insurance policies. As the new statistics have come together, it has been noticed that this age bracket has risen, and now adults up to the age of 31 are being listed on their parents’ car insurance policies as secondary drivers.

Because these young adults are listed as a second driver on their parents’ insurance policies, they are saving a lot of money in the running cost of having a car. With the financial downturn in many countries in the world, young adults are finding any way possible to cut costs. They are now moving back in with their parents, and trying to merge their car insurance policies. Car insurance can be a very expensive monthly bill, especially for drivers under the age of 25, as they fall into a higher risk bracket. Because car insurance is legally obligated in a lot of countries, people cannot afford to be without it. Unfortunately, sometimes they are financially unable to have it on their own.

There is, however, a line that cannot be crossed with regards to this. There is no problem with someone putting themselves down as a secondary driver on another person’s insurance policy, so long as they only drive the car occasionally. The problem comes when parents put their children down as secondary drivers on their policy, when they are in fact the main driver of that vehicle. Research shows that the numbers of people who do this are increasing dramatically. In order to save on the cost of insurance, young adults are putting themselves on their parents’ car insurance policies as secondary drivers, when they are in fact the sole driver of the vehicle.

This is seen as insurance fraud. If one of these young drivers is in an accident, and the insurance investigators find out that they are actually a primary driver on a vehicle they were listed as a secondary driver for, they will not pay out. Even worse, these drivers could be charged for fraud! It goes so far that the young driver will purchase their own vehicle, and register it in their own name, yet they will put the insurance for the car in their parent’s name, as if they are the main driver of the vehicle.

In order to avoid the repercussions of this kind of car insurance fraud, it is highly recommended that young adults take out their own insurance policies. Even if this is not financially viable, it must be done! It is pointless for parents to put their children on their insurance policies, and pay that money every month, when the insurance company will not pay out when they find out about the fraud being committed. In desperate financial times, young adults can even take out third party insurance, which is one of the cheapest options available. This cover will pay out for the damages to the other vehicle the driver hits. It may not cover the actual vehicle being driven, but it is better than nothing. Especially if the young adult drives into a luxury vehicle!

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