Car insurance in name of parents a good idea?
Imagine this: you just got your driver's license, you buy a car and then want to get car insurance.
When you take out the insurance, you see that the cost is quite high per month. Some people therefore choose to put the car insurance in the name of their parents. This is because the insurance may then become cheaper. Does the insurance actually become cheaper and is it wise to do this?
Why is parental insurance attractive?
Insuring in your parents' name is mainly more financially attractive. Insurers see young adults aged 18 to 25 as an increased risk. According to insurers, young people around that age drive more frequently than experienced drivers. As a result, they also pay a higher premium. Another reason is that young people have no, or fewer, claim-free years. By building up claim-free years, you get a discount on your car insurance. Both arguments could be a reason to put car insurance in parents' names, but what are the consequences?
Are there any consequences if I insure in my parents' name?
It can have several consequences when someone puts the car insurance in the name of the parents. When applying for insurance, the insurance company asks for the registration number and the regular driver(s) of the car. These have to correspond with each other. correspond. When you always drive the car, but the parents are the regular drivers, this does not correspond. A regular driver is the person who uses the car the most. So when you borrow the car from your parents, you are you are not immediately seen as a regular driver. When you always use the car and your parents (almost) never drive it, you are a regular driver. If the insurance is not in your name, but in the name of your parents, this is insurance fraud. It is compulsory to have the insurance in the name of the person who regularly uses the car.
What is a CIS registration?
When the insurance company finds out that the car insurance is in the name of the parents instead of the person driving the car, the insurance company can stop the insurance. The car is then no longer insured. In addition, the insurance company may issue a fine if it is found that the regular driver and the policyholder are not the same person. In addition, you may be registered by the insurance company with Stichting CIS. Foundation CIS stands for Foundation Central Information System. Insurance companies can consult CIS to collect, store and exchange information about their customers.
When you apply for insurance or file a claim, the insurer may check with CIS. What the insurer does with this information varies by case and company. Usually, with a CIS registration you will not be accepted by a regular company.
Building up claim-free years is possible?
It can also have disadvantages for your own claim-free years. When the car insurance is in the name of your parents, you do not build up any claim-free years yourself. Because of this you are not entitled to a discount on your car insurance.
Can you get car insurance for a child?
Is it useful to put your car insurance in your parents' name? It can save money, but it can also cost a lot of money when the insurance company finds out about the insurance fraud. Also, you do not build up your own claim-free years. It is therefore wise to put the car insurance in your own name. This way you build up your own claim-free years and you do not run the risk of a CIS registration.
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