Warning to the young: don't cut corners on car cover

Don't go on your parents' policy if you're the main driver – there are legal ways to reduce the high cost.

By Julian Knight

The escalating cost of motoring has come as a shock to many recently as they fill up at the pumps, but for young drivers, the financial pain is nothing new – it's been part of the landscape for years. This is due to the huge cost of car insurance. Statistics show that younger motorists are many times more likely than the rest of us to be involved in an accident, and even to have their cars stolen, and this is reflected in the premiums.

"Young drivers can routinely pay upwards of £1,500 for car cover," says Keith Maxwell, the head of products at insurer More Than. "The quickest way to cut this is by building up a no- claims bonus, which can ultimately reduce premiums by half to two-thirds."

Another popular way round high insurance costs is for young people to be put on their parents' cover. This can mean huge savings as the premiums are based on the claims record, age, driving history and occupation of the mothers and fathers, rather than the children. The fee for becoming a named driver can be as low as 10 per cent of the cost of the premium.

However, insurers report that a dangerous game is being played by people choosing this option, as in reality the younger driver is often the main driver. This is a practice known in the industry as "fronting" and technically it is fraud. And this time of year, when thousands of teenagers are going away to university, is prime fronting season.

"Students and their parents are often unwittingly committing fronting. The younger person takes the car away and in effect becomes the main driver, yet the policy still has the parent's name on it," says Keith Lewis from insurer Zurich.

"People either don't think about what they are doing or simply assume it's legal. It's not. Not only can it lead to a claim being refused but also both the young person and their parents can be charged with insurance fraud."Continued...