August 21, 2017

Parents still paying for offspring’s car insurance at 31

The Recession has meant the children up to the age of 31 are still on parent’s car insurance policies. Just a year ago, this figure was 25.

Price comparison website, uSwitch.com has uncovered that 2.5 million UK drivers are paying to have their children insured as named drivers on their polices.

Recession has meant the children up to the age of 31 are still on parent’s car insurance policies

This trend emphasises how young adults are struggling to pay their way throughout this current recession, and turning to their families amid the financial struggle. By using their parents policies, they are saving money on otherwise expensive insurance premiums.

There is a good reason for this strategy. It is common knowledge that younger motorists pay more for their insurance, due to their increased likelihood of being involved in accidents. According to road safety charity Brake, one in four drivers killed on the roads is under 25, despite just an eighth of drivers fitting into this age group. And Driving Standards Agency (DSA) figures show two under-25s are killed on Britain’s roads every day.

The downside to being a named driver however, is that as the policy is in the parents name, it prevents the younger driver from building up their own no claims discount.

See related article Cheaper insurance for younger drivers

image@Real Insurance

About Philip