A survey that was conducted has brought out a number of shocking facts. This survey revealed that increasing number of children are driving with their parents’ insurance cover. This can be called as the after-effect of recession. The budgets have suffered and affected the job market as well. Sons and daughters, as a part of the insurance policy can be registered under the insurance policy of their parents. The average age for the children to be registered under such a policy has gone up from 25 to 31.
This shows that economic recession has hit badly and people are not ready to take new policies from car insurance supermarket in order to save money. The kidults are living on their parents’ money and saving what they get for their own expenses. Young drivers want to stay away from the high car insurance premiums they have to pay to the insurance companies. This is because they are a bigger risk to them and are more prone to accidents. According to the leading insurance company AA, a person who is of the age 17 will be eligible to pay premium that will be 9 times more than what a 25 year old will pay. The amount will be 14 times more than what needs to be paid by a 35 year old man to insure his car in the same conditions.
Due to recession, more people have put themselves under the parent’s policy to cut costs. They name themselves as secondary drivers as their parents are more experienced and they do not have to pay more insurance premium. The statistics that came out after the survey have shown that almost 40% of the insurance policy holders have a second name in their policies. People take advantage of reduced premiums. This can be called as an insurance fraud and is illegal. As a result of these frauds, the insurance premiums for other people increase.
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