Is it a good idea to have car insurance in your parents' name?

Why is taking out insurance in the parents' names an attractive option?

Getting insurance in your parents’ name is primarily more financially attractive. Insurers viewyoung adults aged 18 to 25 as a higher risk. According to insurers, young people around that age are more likely to cause accidents than experienced drivers. As a result, they also pay a higher premium. Another reason is that young people have no—or fewer—claims-free years. By building up claims-free years, you receive a discount on yourauto insurance. Both arguments could be reasons to put auto insurance in your parents’ name, but what are the consequences of doing so?

What is a CIS registration?

If the insurance company discovers that the auto insurance is in the parents’ name rather than in the name of the person driving the car, the insurance company may cancel the policy. The car will then no longer be insured. In addition, the insurance company may issue a fine if it is determined that the regular driver and the policyholder are not the same person. Furthermore, the insurance company may report you to Stichting CIS. Stichting CISstands for Stichting Centraal Informatie Systeem (Central Information System Foundation). Insurance companies can consult CIS to obtain, store, and exchange information about their customers.
When you apply for insurance or file a claim, the insurer may check your records with CIS. How the insurer uses this information varies by case and by company. In most cases, if youare registeredwithCIS, a standard insurance company will not accept your application.

Is it possible to build up claim-free years?

In addition, it can also have negative consequences for your ownclaim-free years. If the car insurance is in your parents’ name, you won’t build up any claim-free years yourself. As a result, you won’t be eligible for a discount on your car insurance.

Can you get car insurance for a child?

Is it a good idea to put a car insurance policy in your parents’ name? It can save you money, but it can also cost you a lot if the insurance company realizes that insurance fraud is involved. You also won’t build up your own no-claims history. So it’s wise to put the car insurance policy in your own name. That way, you’ll build up your own no-claims history and won’t run the risk of being registered in the CIS. 

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