Car hirers may be interested to know about a new study has found that average age of a child on a parent’s car insurance policy has jumped from 25 to 31 years old as an increasing number of young people have been hit by the credit crisis.
It has been revealed that as many as 10 million drivers have a second driver on their policy, with 2.5 million of those being their children.
The figures reveal the extent of which the growing numbers of young adults are relying on their parents as the economic downturn takes hold.
According to research earlier this year, more than one million young people aged 18 to 24 have returned home to live at their parents house or postponed plans to move out in order to save money.
Insurance export Mark Monteiro has said that not only are young adults living at home longer, but they are hanging around on their parent’s insurance policies for much longer too.
Being listed as the second driver on a parent’s insurance policy is legal, providing the child in question is not the primary driver of the car.
However the practice is illegal when a younger motorist buys and registers a car in their own name and the insurer is told incorrectly that the parent is the main driver. In these circumstances car insurance providers can refuse to pay for claims.