Can you build up no claim through your parents?
You build up no-claims when a car insurance is registered in your name. With a registered car insurance you get claim-free years. Claim-free years are years in which you do not claim any damage at the insurer, hence 'no claim'. The more claim-free years you have, the more no-claim discount you will get. When the car insurance is not in your name, you do not build up claim-free years, even when you regularly drive the car. This is often the case with children. If you use your parents' car regularly, unfortunately you do not build up any claim-free years or no-claim. Because of this you will not get a discount on the premium when you take out your own car insurance. In this article we explain how this works.
No claim discount via parents
With some insurers, such as ANWB, it is possible to be added as a child to the parents' policy. This is possible for children between 17 and 26 years of age. In this way they build up no-claim discount, which they can then use to take out their own car insurance. However, it is not about claim-free years. This means that the no-claim discount only applies when the car insurance is taken out with the same insurer. If the child wants to take out a car insurance policy somewhere else, the discount lapses.
More expensive car insurance for young people
Car insurance is much more expensive for young people under 24 than for older drivers. Analysis has shown that young drivers suffer more damage than more experienced drivers. This is why insurers see young people as a bigger risk and therefore charge them a much higher premium for car insurance. Also, young people have few or no claim-free years. Therefore they get less no-claim discount on the basic premium. Because of this, taking out a car insurance in the name of your parents might seem financially attractive. However, this is not wise, because there are a number of disadvantages.
Claim-free years transferable since 1-1-2022, but not yet to children
A big disadvantage of having a car insurance in the name of your parents is that you do not build up any claim-free years yourself. Only the person in whose name the car insurance is held accrues claim-free years. Today it is not yet possible to transfer claim-free years to children, even if they are named as regular drivers on the policy.
Since 1 January 2022, claim-free years are transferable in some situations. In case of death for example, they can be transferred to the surviving partner. Also for lease drivers and drivers who have lived abroad for years, it is now possible to transfer the claim-free years. This way, they do not lose their accumulated claim-free years. In case of children, however, it is not yet possible to transfer claim-free years. There is a desire from many quarters to make claim-free years transferable to children, in order to help young drivers on their way. However, in 2022 this is not yet possible.
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