Motor insurance news
13/10/2008
Warning over lies to get cheap young driver car insurance
Young driver car insurance is at the centre of a warning by a leading UK insurance body that is advising motorists to avoid a practice called 'fronting' to get cheaper car cover premiums.
Fronting happens when young drivers are put on parents' policies as occasional users when, in fact, they are the main driver.
But the Association of British Insurers (ABI) warns that drivers are likely to end up worse off in practice if caught out trying to conceal true driver habits.
Malcolm Tarling, ABI's general insurance expert, said, "If you think you are saving money now, it's false economy because you will be spending more for many years to come."
Should a motor insurer discover that a policyholder has lied then the company may decide not to pay out in the event of a claim, and future premiums for young driver car insurance could be raised.
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