A parent company is a business entity that sells an insurance product but transfers the risk to another company. You can do this because the company that assumes the risk is not licensed to sell a similar product in that area. Overtaking is the practice of stating that the main driver of a vehicle is one person when, in fact, it is another person. For example, families may name a parent as the primary user of a vehicle when, in fact, it is their adolescent who drives it most often.
People use the facade to reduce the price of car insurance. If they can claim that an older, more experienced person is the primary driver of the vehicle, they may be able to lower their insurance premiums compared to insuring a younger driver. The other consequences of the appearance, in addition to those discussed so far, may include a license ban, reimbursement costs incurred by an insurer, and prosecution for fraud in car insurance.
