Young drivers lie for cheaper car insurance
A quarter of young drivers have lied to their insurer to lower the cost of their car insurance, according to a report by myvouchercodes.co.uk.
Alarmingly, 68% of those questioned were not aware lying to their insurers could make their policies invalid.
Over half of the 17–21 year old respondents admitted to 'fronting' in order to save money on their premiums. This is when a young driver names one of their parents as the main driver of the car when in reality the parent does little driving.
In addition, some 39% said they do not declare modifications made to their car and 41% lied about keeping their car in a garage.
The average cost of an insurance policy for a Renault Clio for a 17-year-old female is £2,911.01 per year whereas the average for a 17-year-old male is £5,232.56, according to the AA.
As a result of this many are using illegal practices to get around the expensive prices.
Mark Pearson, chairman of MyVoucherCodes.co.uk, says: "I would never recommend lying to an insurer to lower your premium, because it invalidates the policy and should you need to make a claim, you may find that you can't.
"It's a shame that people do this sort of thing to save money, because there are much better and more honest ways of getting money off."
How can young drivers save money on car insurance?
There are many different ways young drivers can save money on their insurance without resorting to lying. Here are five ways:
1. 'Legal' fronting
If a child names their parents as the main driver the parent needs to ensure the driving is weighed in their favour to avoid illegally 'fronting'. To do this make sure you keep logs of each journey as proof should it ever be needed.
2. Pass Plus
After you pass your driving test there is the option of taking the Pass Plus. This is a useful extension course that can reduce premiums at some insurance companies.
Insurers such as Tesco and AA do acknowledge it but the savings are not as great as they used to be, as the extra experience is not seen to be enough, so shop around before you sign up for this. The price of this course varies depending on which company you take it with. However, be warned the average price is around £100-£150 so it could wipe out your saving.
3. The size of your car
A further way of saving money is by ensuring the car is small with a small engine and fits into the cheapest insurance bracket.
4. Telematics for young drivers
Insurethebox launched the concept of the telematic smartbox in June last year and other companies such as Young Marmalade and the Co-Operative have followed its lead. The telematic smartbox can be installed into a young driver's car and enables the insurer to monitor how the car is being driven.
If you are a conscientious driver your annual policy can be reduced by amounts of up to £300. The smartbox monitors things including the braking and acceleration, speed, cornering and time of day and sends the results to the insurance company, driver and the driver's parents.
5. Other ways to cut your premium
Raising the excess, restricting mileage, parking off-street and fitting vehicle security are other simple ways of reducing the premium of your insurance.
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.