Parental Auto Insurance Fraud

According to Zurich Insurance, they have found that one in ten parents have put their children’s auto insurance into their name in an effort to reduce premiums. It is a well known fact that car insurance premiums are higher for younger drivers, so many think that if they put their name on the policy that they will save money.

However, not only does it not work that way, but you are committing car insurance fraud by doing so. Some think that they are simply required to insure it in their name because they bought the car, but again this is erroneous information. They list their child on the policy as a named driver, but that does not fully comply with the law.

Most people don’t realize that what they are doing is illegal. They simply are trying to save money, or feel that this is the requirement. However, if they are discovered, it could lead to the child having no car insurance and thus if they are in an accident, they will not be covered.

If it is discovered you can also end up with points on your license, the policy can be cancelled, or you could even be disqualified from driving altogether. There is also the fact that if the auto insurance company finds out about it after an accident, they have the right to deny any and all claims against it. Whoever is the main driver of the car is who the auto insurance has to be in. Otherwise it constitutes auto insurance fraud.



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