Five legal ways to cut your teenage driver's insurance bill
With many teenage drivers receiving insurance quotes for £6,000 or more, both parents and children alike will be looking at ways to cut costs.
Only the most foolhardy will avoid the cost altogether and join the UK's 1.5 million uninsured drivers as the penalties can be extreme (you could face an immediate driving ban).
However many parents are willing to try and pull the wool over their insurer's eyes by telling them that they are the primary driver of the car, not their child, in order to reduce the premium.
This devious practice - known as 'fronting' - is illegal and the insurance industry is cracking down. Each year the Financial Ombudsman reckons some 1,000 insurance claims aren't paid because the relationship between the teenager and the car hasn't been properly described.
Getting your teenage driver insured will invariably be expensive but there are still plenty of legal ways to limit the damage with Moneywise's top tips.
1. If you haven't got a second car, buy one. Add your child as a named driver, but weight car use in your favour. Keep a log to avoid claims that you're 'fronting' for your child.
2. Consider putting in your teenager for the Pass Plus course to better prepare them for the road and earn discounts with some insurers (although the savings aren't as good as they were). Providers that do take it into account include Tesco, AA, Quinn Direct and Endsleigh.
3. Investigate i-kube or Young Marmalade. Both insist on Pass Plus and the fitting of a black box to enforce a no-night-driving rule (with a £60 penalty if the rule is broken). Young Marmalade is expanding the black box device to record driving style and is offering greater savings to cautious drivers.
4. Try the usual tricks for cutting car insurance: raise the excess, restrict the mileage, fit vehicle security and park off-street.
5. Make sure the car is in the cheapest possible insurance group. The smaller the car and engine, the less expensive the insurance.
If you’ve have a complaint about a financial service product you have bought but the company you bought it from refuses to resolve your problem after eight weeks, the Ombudsman can help. The Ombudsman will investigate and resolve the matter. The Ombudsman is independent and its service is free to consumers. The Ombudsman may find in the company’s favour but consumers don’t have accept its decision and are always free to go to court instead. But if they do accept an Ombudsman’s decision, it is binding both on them and on the business.
This is more usually a feature of car insurance but it can also crop up in contents, mobile phone and pet insurance policies. An excess is the amount of money you have to pay before the insurance company starts paying out. The excess makes up the first part of a claim, so if your excess is £100 and your claim is for £500, you would pay the first £100 and the insurer the remaining £400. Many online insures let you set your own excess, but the lower the excess, the more expensive the premium will be.