Why young adults need to get off their parents’ insurance policies
It’s really nice to be independent, right? You’re at the beginning of a very promising career, drive around in your own car and do your own thing. Except for your short term insurance policy…
So why should you bother getting your own insurance policy? Your valuables are safely covered on your parents’ policy – no need to worry about that… right? Wrong! See, the no claims bonus is earned by the policyholder. In this case, Mom or Dad. So how does that influence you? Let’s take vehicle insurance for example. Second drivers, also called “named drivers”, don’t earn their own bonus whilst on someone else’s insurance. To be sure of reaping the maximum benefit from your good driving, you’re better off getting insurance in your own name as soon as you possibly can. After a year, if you’ve had no claims, the savings can be significant.
We therefore advise clients to get off their parents’ policies as soon as they can. Every client must build up their own no claims bonus. We’ve seen 28-year olds, still on their parents’ policies!
And let’s face it… you don’t want to be a financial burden to your parents (you are paying them for your portion of the premium, right?).
If you are a young adult still on your parent’s policy or a parent, still paying for your child’s valuables, please contact us for a free quote.