Is it legal to add your parents as named drivers on your car insurance policy if they don't actually drive the car in order to lower your insurance premiums

It is generally not legal to add your parents as named drivers on your car insurance policy if they do not actually drive the car in order to lower your insurance premiums. This is considered to be insurance fraud and can result in serious consequences, including fines and legal penalties. Insurance companies base their premiums on the risk of the driver and the car, and if you misrepresent the information, you are committing fraud.

It is important to note that all household members who are licensed drivers should be listed on the car insurance policy. This is because if an unlisted driver gets into an accident, the insurance company may deny the claim and the policyholder may be held liable for the damages. Additionally, if the insurance company finds out that a licensed driver was not listed on the policy, they may cancel the policy altogether.

In some cases, an insurance company may allow for a named driver exclusion, which is when a specific driver is excluded from coverage on a particular vehicle. This is usually done when there is a problem driver in the household who has access to an insured vehicle. However, it is important to note that a named driver exclusion is not the same as adding a named driver to the policy.

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