Car insurance in parent's name a good idea?

Why is insurance in parents' names attractive?

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,claim-free years. By building up claim-free years, you receive a discount on yourauto insurance. Both of these 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 car insurance is in the parents’ name rather than 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 with CIS. What the insurer does with this information varies by case and company. Typically, if youare registeredwithCIS, you will not be accepted by a standard insurance company.

Building up claim-free years is possible?

In addition, this can also have negative consequences for your ownno-claims history. If the car insurance is in your parents’ name, you won’t build up your own no-claims history. 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 convenient to put car insurance in your parents' name? It can save money, but it can also cost a lot of money when the insurance company figures out that there is insurance fraud. Also, you don't build up your own claim-free years. So it is wise to put the car insurance in your own name. That way, you build up your own claim-free years and do not run the risk of a CIS registration. 

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